HCBBS Forum (English)
Submit Chemical Projects / Find Solutions
Amplify Your Requirements on a Broader Chemical Platform *Engineering · Technology · Equipment · Solutions*
Submit Request

The meaning of free container rental and free stacking

2020-05-08View Original

Thread Content

When the volume of cargo is large or the destination is far from the port of discharge, customers usually request a sufficiently long free time from container delivery and stacking at the time of booking. I only know that it’s easier to avoid using cabinets, while avoiding stacking is relatively more difficult. I’d like to share with you what the differences are. DEMURRAGE: Refers to the fee charged for the overdue use of a container while it is under the control of the carrier or its agent; it usually applies to the situation where the container is used beyond the allowed time at the destination port or yard before the consignee completes the customs clearance process and picks up the goods. DETENTION: Refers to the fee charged for the overdue use of a container while it is in the possession of the consignee, that is, when the consignee takes the container out of the yard or port after completing customs clearance but fails to return the empty container within the specified time. Both Free Demurrage and Free Detention refer to fees associated with container delays; the difference between them is that Free Demurrage starts to accrue from the moment the container is unloaded at the port and continues until it is taken away from the port ; Free Detention: Calculated from the time the container leaves the dock until the empty container returns to the dock ; There is also a Free storage period: this refers to the dock storage fee, which is calculated from the time the container is unloaded at the dock until it is picked up. Among these, Free demurrage & detention refers to the fees for holding the container, which are collected by the shipping company. Normally, this period is around 7 days; in some ports, due to transshipment or other reasons, an extension of 10–14 days can be requested, and in more extreme cases, up to 21 days ; Free Storage, on the other hand, is the storage fee charged by the port; it usually applies to a period of 5-7 days, and it is often difficult to obtain. Differences between FREE TIME, FREE DEMURRAGE, and FREE DETENTION: After conducting research online and analyzing the information available, the following are considered to be the most accurate references: 1. The period during which the container remains at the port without any rental charge after the goods arrive: Free Demurrage ; 2. Free period for pulling the container away from the port after the goods arrive: Free Detention ; 3. The period during which containers can be stored at the port without incurring storage fees: Free Storage. Items 1 and 2 are determined by the shipping company, so an application can be made to the shipping company. Under normal circumstances, the applied for and approved Freetime = Free Demurrage + Free Detention. Under normal circumstances, the free time at the port of destination is 7 days; applications for 14 days are usually approved by shipping companies, while 21 days is more difficult to obtain, unless it’s a regular customer or the shipping company has so many containers available at the port that they have no need for additional ones. Many people do not understand the difference between Demurrage and Detention. Storage, on the other hand, is the fee charged by the port to shipping companies for storing containers; the duration of free storage depends on the port, not the shipping company. Demurrage and Detention: The demurrage period is calculated from the date the full container is discharged until the date it is removed from the port, after deducting the standard free time. The detention period starts from the date the container is taken out of the port and continues until the container is returned empty by the consignee to the carrier’s yard in the port. D&D (Demurrage & Detention) refers to these fees; related terms include Free Time. The free time for demurrage begins on the date the goods arrive at the destination, while the free time for detention begins on the date the consignee picks up the loaded container. If the corresponding free time expires and the consignee still hasn’t picked up the goods, they must pay demurrage according to the carrier’s rules; if they still haven’t returned the empty container, they must pay detention fees as per the carrier’s regulations. Whether 7 days of free time from demurrage charges is sufficient depends on how quickly the import clearance procedures can be completed, while 7 days of free time from detention charges depends on how quickly the container can be returned empty. These two aspects are not mutually exclusive – efforts should be made to secure both! Free detention and free demurrage refer to container stacks both on-site and off-site. The containers belong to the shipping company, so an application can be made. Both terms relate to container rental and have nothing to do with freight charges; they are both fees collected by the carrier. The difference is that in Indian ports, customers often request a longer FREEDETENTION period because they need to transport the containers to inland locations, thus requiring more time to use them ; This does not mean that it is impossible to obtain \"FREE DEMURRAGE\" in India. How is this charge expressed in English? And how can one apply for compensation if a container remains in the port or warehouse at the destination port for an extended period of time? To apply for this, one can request \"free storage\" or \"FREE TIME\", which is equivalent to \"FREE STORAGE\" + \"FREE DEMURRAGE\". However, shipping companies generally do not provide this benefit, as the cost of \"STORAGE\" has to be paid to the port; if that cost is waived, then the shipping company itself has to bear the expense.

Submit a Project

**Looking for Chemical Technology, Equipment & Solutions?** No Registration Required Broader Platform Exposure | Global Chemical Service Provider Connections

Submit Request — Free Consultation

Disclaimer

This is an automated machine translation of the original thread. Some technical terms may have inaccuracies; the original text shall prevail. Click "View Original" at the top right to access the source page, which supports IP-based automatic real-time language translation. Please watch out for contact details and sales inducements to prevent fraud. All content and translations are for reference only, representing solely the poster's personal views. For enquiries, email service@hcbbs.com.