Combined demurrage and detention
Further to my previous post discussing the difference between demurrage and detention, above question has been raised by one of the readers..
“What is the meaning of combined demurrage/detention charge? How is that being calculated? This again confuses the customer – if you have a combined detention/demurrage – it means that you either get 5 demurrage days and 9 detention free days (or) you can use it as per your convenience – 7 dem/7 det free days with prior agreement.”
The NORM is a combined demurrage/detention scenario.. In this case, there is no difference between demurrage and detention charge and the end result will be that if the client is offered 10 dem/det free days, then from the time of the container reaching its final destination (as per bill of lading) the client will have 10 days to pick up the full and return the empty.. In MOST cases, the dem/det period is combined.. Very rarely the lines offer free days for either demurrage only or detention only..
If “x” free days offered for demurrage only, then that means that the client has “x” free days to pick up the full container after which the empty has to be returned the same day to avoid costs..
If “x” free days offered for detention only, then that means that the client can use the “x” free days to unpack the container and take it back to the depot.. They might have some unpacking problems at their warehouse which necessitates such requests..
Trust this helps..