Detention and demurrage: What is the difference between the two?

Detention and demurrage: What is the difference between the two?

Detention and demurrage: What is the difference between the two? 1024 726 ICI Coverage

Two terms that are often confused within the maritime area are detention and demurrage. Although both have to do with the costs that can be generated in the midst of container operations, it is essential to know the differences.

What is detention?

On the one hand, detention is the charge that the client or consignee must pay for occupying the container, outside the port, for longer than the days granted by the shipping company.

In other words, detention is the charge applied by the shipping company for each extra day that the client has the container to load or unload their merchandise outside the port.

What is the demurrage?

On the other hand, when speaking of demurrage, speaks of the charge that is applied to the client who keeps the container, within the port, for more time than that determined on his days off.

In this way, the demurrage translates into the charge that the client must pay when the container remains in the port exceeding the free days assigned.

How to prevent this from affecting your logistics process?

To prevent any of these charges from having an impact on your logistics process, we recommend that you:

  • Know in detail the free days of each port through which your merchandise will transit.
  • Advise you with specialized companies that can support you throughout the logistics process.
  • Have a demurrage insurance policy that can prevent the risk of having to pay serious amounts of money out of pocket ultimately impacting your bottom line.

Contact us today and get more information about how a demurrage insurance policy can help your business. Click here!

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