Shippers are becoming increasingly active stakeholders in the logistics business, forcing carriers and forwarders to adapt. Portrix Logistic Software’s Global Head of Marketing, Christian Sørensenon, talks to Shipping and Freight Resource about the changing shipping landscape and provides tips for shippers and logistics companies to stay ahead of the curve.
In one my previous articles (which is also the MOST READ article on this site) I explained the Difference between Demurrage and Detention..
After reading this, a few of my readers have asked me to explain the causes of demurrage and detention..
There are several reasons a container(s) can incur demurrage and/or detention or combined demurrage and detention.. Here are some of the major reasons..
What is the difference between a shipper owned container and a carrier owned container..??
A shipper owned container is a container owned by the shipper of the goods and a carrier owned container is a container owned by a carrier..
But the question may be a bit deeper than just the difference in definition between the two.. Let’s see..
Are demurrage and detention charges justified..??
No this is not my question..!!
This is a question that has arisen on the back of rising demurrage and detention charges incurred due to port and terminal congestion at key USA gateways such as Los-Angeles/Long Beach on the West Coast and New York-New Jersey on the East Coast..
Are demurrage and detention charges paid by the shippers to the ports, terminal and shipping lines justified especially in light of the port congestion..??
Is there a link between the demurrage charged by the shipping line and Incoterms®..??
This question was prompted by the below question from one of the readers.. Thank you Rizwan..
We have received huge shipment from our suppliers on CFR basis
In the Bill of lading the Consignee is To The order of Seller and our company name is in Notify party.
The seller has sent us the original Bill of lading 20 days after the vessel has arrived at destination port.
Hence there is a delay in clearing the goods. Can the shipping line claim demurrage charges from us or they should put claim on seller /shipper since the shipping line contract is with the seller and not us
Buyer booked his cargo with a container shipping company and took containers from them with 10 days of free time. The seller stuffed the cargo inside containers in 12 days, now there is a detention for 2 days for containers.
Term of contract is FOB, but seller did not mention in the contract that he will stuff the cargo inside container in less than 10 days.
Who should pay the detention of containers ?
Demurrage, Detention and Despatch are terms that are used around the world in day to day shipping.. However sometimes people get confused about what to use which term where, especially Demurrage as it relates to container and bulk trades..
This article endeavours to clear this confusion by discussing the difference between Demurrage, Detention and Despatch and the meaning of each of these terms..
Difference between ground rent and demurrage and detention This is a question from Siddhartha What is ground rent , is it different from demurrage and detention ? and who will collect ground rent ? Siddhartha, in very simple terms, ground rent indicates Storage and it is different from demurrage and detention.. Storage could occur under …
What is the difference between Storage and Demurrage..?? This is another area where some confusion exists and I will explain the reason why.. When a container is discharged off a ship, it is moved to the CY area within the port.. When the customer has done the clearance with customs and is ready to take …