Everything you need to know about the costs of detention and demurrage in maritime transport

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Detention costs

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Detention fees apply when the containers remain in the possession of the recipient (deposited) outside the terminal beyond the franchise granted by the shipping company.

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In general, a shipping company grants a franchise, called “free time”, during which the recipient can keep the container at no additional cost. If the container is not returned within the time limit, the detention costs start to accumulate, which are billed daily until the container is returned to the agreed terminal (inland or port). This free time period varies according to the companies and the offers.

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These fees are charged by shipping companies and vary according to the type of containers, shipping companies and country. In France, they average €70 per day for a 40' and can rise to €140 per day after 19 days of parking.

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Calculation of the length of detention:

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Container return date - Terminal exit date.

NB: weekends and public holidays are taken into account in the calculation.

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Demurrage costs (demurrage)

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Demurrage costs, or demurrage, relate to the period during which the container remains at the port terminal after unloading and before leaving the terminal.

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These fees are also calculated daily and start once the franchise has expired. Demurrage fees aim to avoid congestion in ports by encouraging recipients to pick up their containers quickly.

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The deductible for demurrage varies according to the policies of the shipping companies, but it is generally a few days. After this period, demurrage fees apply.

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These fees are charged by theShipping companies and vary according to the type of container, the shipping companies and the country. In France, they average €70 per day for a 40' and can climb up to €140 per day beyond 19 days of parking

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Calculation of the demurrage period:

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Terminal exit date - Quay View Date (unloaded container)

NB: weekends and public holidays are taken into account in the calculation.

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Parking fees

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Parking fees are applied when the container is parked on the terminal beyond the franchise granted by the port terminal.

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These fees are charged by the port terminal and vary by container type, terminal and country. In France, they amount to an average of €60/additional day for a 40' and can rise to €110 per day beyond 15 days of parking.

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Parking fees are in addition to the demurrage fees charged by the company.

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Calculation of parking time:

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Terminal exit date - Quay View Date (unloaded container)

NB: weekends and public holidays are taken into account in the calculation.

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Importance and Management

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Understanding and proactively managing detention, demurrage and parking periods is essential to optimize logistical operations and reduce the costs associated with maritime transport. Each contract and each company offers different franchises, which can be mixed (ownership and demurrage combined) or simple (one franchise per category).

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Tips:

1. Ask your freight forwarders for franchises: When booking, ask your freight forwarder for the deductibles associated with the rates offered.
2. Negotiating franchises: Depending on the period, companies may be open to negotiation.
3. Use a TMS: A transport management system (TMS) like OneChain can help you proactively manage your deliveries and reduce the additional costs associated with franchise overruns.

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Effective logistics management includes knowing the costs of detention, demurrage, and parking, in order to minimize additional costs.

Good coordination with carriers, whether for road, air, river or multimodal transport, as well as optimized flow management, is crucial to ensure the rapid and efficient delivery of goods.

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The importance of transport contracts and bill of lading procedures should not be underestimated, as they define the responsibilities of each party and the conditions for the delivery of goods, including customs clearance procedures and customs requirements.

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