People often get confused by these two words Demurrage and
Detention.
Well then, what is the difference??
When dealt with in the
context of containerized cargo, simply put,
* Demurrage relates to cargo
* Detention relates to equipment
Elaboration : Imports – A container is discharged off a ship on the
2nd July – Consignee approaches the shipping line to take delivery of
the cargo around 12th July.. Working off a standard 7 free days from
date of discharge, the line free days (different to port free days)
expires on the 8th July.. So, the line will charge the consignee
DEMURRAGE for 4 days from 9th to 12th July at the rate fixed by the
line.
After the full container has been picked up by the client, for
example if they take another 7 days to return the empty container, then
it is known as DETENTION which again will be charged at the rate fixed
by the line.
So basically before unpacking of the cargo Demurrage is charged and
after the cargo is unpacked till the time the empty is returned to the
lines nominated depot, Detention is charged.
Exports : In the case of exports, normally lines give about 5 free
days within which the shipper has to pick up the empty, pack it and
return it full to the port.. In case of delays more than 5 days, the
line charges Detention (generally same tariff as import detention) for
the days that the empty is kept with the client as empty or full.
Once the container is packed and say for example the shipper is
unable to ship the same due to any reason, then the Demurrage will be
charged at the rate fixed by the line till the full container is shipped
out.
data source:>>>>>
http://theworldofshipping.wordpress.com/2009/07/08/difference-between-demurrage-detention/
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