There is nothing super confusing than when a client has settled their shipping charges and in the process of having their goods shipped, they are served with a bill showing per diem, detention or demurrage charges for their parcel. In most cases, the clients are not aware if such charges do exist and once they are provided with those bills, it is a challenge. It gets to answering the question on whether delays in collecting a parcel at the port will attract any fee whatsoever. Also, it brings about the question of who is to pay for these charges. In order to answer the questions, we are going to define the aforementioned charges that one might be charged.
Per diem or detention charges
When you are shipping a large cargo, say a container, there is some free time that the container is hosted at the port. This on-terminal charge time is limited and with the cargo delaying over the allocated time, there are bound to be charges imposed on the shipment. The container is detained over a period of time and the per diem (per day) charges are imposed. In most cases, these daily charges range from Ksh. 5, 000 to Ksh. 10, 000.
On the other hand, the detention fee can also be imposed by the inland carrier as charges that were imposed to you for delay. In a scenario where the driver ended up waiting for a long time, these detention charges can be imposed. In most cases, Sahan Cargo allows the drivers to wait for a maximum of two (2) hours before we impose the detention fee on your cargo. With the trucking industry disarrayed by the presence infrastructure, the river detention charge can be high.
This is cost that is assessed based on the length in the duration of time that the package was left at the terminal beyond the allotted free time. Thus, it is crucial for the consumer to check for the free time that is allowed. In most days, a number of five days is allowed from which demurrages charges start to pile up. In most instances, these charges range between Kshs 7500 to Kshs 15000 per day per container.
Can you avoid demurrages charges?
With large shipment, one can request additional free time extension. Since these storages are available based on the number of containers that one has in a vessel, it is possible to as for extension time. However, you must be transporting quite a large number of containers a year to qualify for an extension.
On the other hand, if you are sure about the congestions experienced in a port, it is ideal to have an alternative option for a trucker. This will save time and cost when the schedules are congested. Preclearing your cargo is another option that one can take to ensure that there is efficiency in the process.
When it comes to avoiding detention, there are several precautions that Sahan Cargo suggest you consider. To start with, when scheduling your loading and unloading time, make sure to consider the detention time. Alternatively, you can you can negotiate for more time to facilitate live loading/unloading. Being conscious of the time when the billing will start will help with managing the time or striking a deal to mitigate the rise variation. Dispatching the cargo far in advance will also ensure that there is enough time to beat detention. This will also ensure that the loaders and the unloader (for both export and imports) are prepared for the freight in advance.
In the long run, demurrages can be considered to be the fee that is charged if your cargo extends a certain amount of time at the port. This fee is paid to the port authorities. On the other hand, per diems and detention are paid to the steamship or the trucker since it is considered to be the cost associated with having them wait for loading/unloading.