TARIFF OF DEMURRAGE AND DETENTION DEFINITIONS:

“Demurrage”: the charge, related to the use of the equipment only, the merchant pays for carrier's
equipment kept beyond the free time allowed by the carrier for taking delivery of goods in the port,
terminal or depot.


“Detention”: the charge the merchant pays for detaining carrier's equipment outside the port, terminal

or depot, beyond the free time.


“Free time”: the period of time allowed to the merchant free of charge, covering both demurrage period and detention period, beyond which additional charges such as, but not limited to demurrage
and detention charges, will be due to the Carrier. Demurrage and Detention do not include storage costs and reefer services which are charged
separately.


“Storage Costs”: those costs related but not limited to quay rent, charged to both carrier's equipment

and shipper's equipment for containers staying on ground.


“Reefer Services”: these services such as Power supply and Monitoring. If not otherwise specified in the tariff grid, a merged (or combined) demurrage & detention rate is applied.


“Carrier” means the Party on whose behalf the Bill of Lading is issued.


“Merchant” includes the Shipper, Holder, Consignee, Receiver of the Goods, any Person owning or
entitled to the possession of the Goods or of this Bill of Lading and anyone acting on behalf of any
such Person.

Different Detention and Demurrage

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/

Read more: http://www.businessdictionary.com/answers/3430/what-is-difference-between-detention-charges-and-demurrage/#ixzz2SZ9CNzOo

MAERSK LINE - Demurrage and Detention

3rd May 2010

With increasing demand for containers in Asia as export picks up, customers are faced with challenges getting sufficient containers to meet their shipping needs. In our endeavors to improve equipment availability to cater to the needs of our valued Malaysian customers, Maersk is adjusting our Detention and Demurrage charges to encourage timely return and to recover both the increasing equipment and opportunity costs.

Effective 1st June 2010, our Detention and Demurrage charges post agreed free time will be computed for all locations as follows in Malaysian Ringgit:

IMPORT
	Demurrage				Detention
Equipment	Freetime	Day 1 - 3	Day 4 - 7	> Day 8	Freetime	Day 1 - 3	Day 4 - 7	Day 8 - 24	> Day 25
20' Dry	5 calendar days	40.00	65.00	90.00	5 calendar days	25.00	35.00	55.00	120.00
40' Dry	5 calendar days	70.00	110.00	150.00	5 calendar days	40.00	55.00	100.00	240.00
45' Highcube	5 calendar days	80.00	160.00	250.00	5 calendar days	70.00	100.00	200.00	260.00
20' Reefer, Opentop & Flatrack	3 calendar days	150.00	200.00	250.00	5 calendar days	100.00	120.00	150.00	240.00
40' Reefer, Opentop & Flatrack	3 calendar days	250.00	300.00	350.00	5 calendar days	200.00	250.00	300.00	350.00

EXPORT
Combined Demurrage and Detention
Equipment	Freetime	Day 1 - 3	Day 4 - 6	> Day 7
20' Dry	7 calendar days	25.00	40.00	80.00
40' Dry & Highcube	7 calendar days	50.00	80.00	120.00
45' Highcube	7 calendar days	60.00	120.00	200.00
20' Reefer, Opentop & Flatrack	7 calendar days	120.00	150.00	200.00
40' Reefer, Opentop & Flatrack	7 calendar days	250.00	300.00	350.00

For further enquiries, please contact +60 3 56390588.