. Calculating Demurrage / Detention Charges. Seaboard Marine is in the business of moving cargo between Shippers and Consignees. For most of these transactions, equipment (containers and chassis) is needed to efficiently move the cargo to or from our ships for delivery to our customers. Without equipment, we cannot effectively serve our clients.
Fees applied to late containers increase costs if, for example, 200 containers, with a 10-cent fee attached to them, are late by ten days, which results in a $200 payment, just for that one per diem charge. Add to it demurrage and detention fees, and it can quickly add up and cost shippers hundreds and thousands of dollars per shipload of cargo.
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So far in 2022, average D&D charges by major ports have declined to an average of $664 per container by 26%, although fees remain far higher than pre-pandemic at around 12%. The U.S. came out worse regarding D&D costs in regional comparisons in Container xChange's Demurrage & Detention Benchmark 2022 report.
Let’s take a deep dive into how the FMC investigation into demurrage and detention practices came to be, and why it all matters. UPDATE 4/2/18: FMC Issues Information Demands in Detention & Demurrage Investigation The FMC has begun the first phase of the investigation into demurrage and detention practices, ordering ocean carriers and container terminals to submit.
Detention Rates Cut Shipper Profits. Carriers often have a detention rate to counterbalance some of the income lost during detention. "Detention rate" is the fee carriers charge for their detention time. Rates can range from $25-100 an hour. This fee does not fully make up the cost of the driver's stationary truck and lost time, but it.
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