Both demurrage and detention are fines for the shipper or consignee delaying or keeping a container, but they are used in different contexts and applications. For example, demurrage fees are assessed for delays within the port, whereas detention fines are applied for delays outside the port. The rules and conditions for demurrage and detention differ by country. Here are further details about each.
Example applied in some European ports:
Container Demurrage Fees:
• Definition: Demurrage fees are charged when containers remain inside the port beyond the free time given by the shipping line.
• Who Pays: The client (shipper or consignee).
• To Whom: Paid to the shipping line.
• When to Pay: Before the cargo departs from the port.
Read more: What is the difference between BL and WB?
Container Detention Fees:
• Definition: Detention fees apply when containers are held outside the port beyond the free time granted by the shipping line.
• Who Pays: The client (shipper or consignee).
• To Whom: Paid to the shipping line.
• When to Pay: Before or after the container is returned to the shipping line's possession.
Example Applied in Egyptian Ports:
Demurrage Fees:
• Definition: Demurrage fees are charged when containers are held by the consignee, either inside or outside the port, beyond the free time granted by the shipping line.
• Who Pays: The consignee.
• To Whom: Paid to the shipping line.
• When to Pay: Before the cargo departs from the port.
Detention Fees:
• Definition: Detention fees apply when containers are held by the shipper, either inside or outside the port, beyond the free days granted by the shipping line.
• Who Pays: The Shipper.
• To Whom: Paid to the shipping line.
• When to Pay: Before the containers are loaded onto the ship.