Author name: starcarrasco08

In the global shipping industry, the terms “detention” and “demurrage” are often used interchangeably, yet they refer to distinct concepts

Demurrage and detention fees are among the largest costs that the shipping company has to meet; these costs result from different factors such as the mistakes made on documentation or congestion at the port, customs clearance. In most cases, the shipper or exporter pays charges on exports while the consignee or importer pays charges on imported goods whereas in some circumstances the liability may be switched; for example, when the shipper has misplaced information that results to port congestion at the destination point. Such charges are normally dollar based, charged on per diem basis and may also vary with the shipping line, the port or equipment used and applies to the time a container is over and above the free days allowed.
Some of the ways, through which these charges can be minimized are, container monitoring in real time mode, communication with all interested parties and the attempts to negotiate with the carriers about the providing of extra free time, especially for those shippers, who transport a great amount of cargo under FMC. This is why tools such as the VIZION container tracking API improve supply chain transparency; shippers and freight forwarders can organise their operations to prevent, schedules conjecture and extra expenses.
Demurrage and detention charges can never be completely eradicated, nevertheless, companies who maintain strict cost consciousness, forward planning and good cooperation and communication can drastically decrease the amount of times and the costs incurred by such penalties. This means that through getting acquainted with the various factors that influence these fees as well as embracing technological advancement that seeks to offer visibility into this commerce, the companies stand to gain a right understanding of the happenings on the global shipping and thus protect their profitability.