- Free Time at Destination Port can be subdivided into:
- Free Demurrage: This refers to the free usage period for containers at the terminal after they arrive at the port.
- Free Detention: This refers to the free usage period for containers after they have been removed from the terminal.
- Free Storage: This refers to the free storage time allowed by the terminal for containers on-site.
- Differences Among the Three:
- Free Time is typically equal to the sum of Free Demurrage and Free Detention. Free Time usually lasts around 7 days. After this period, the Demurrage & Detention (D&D) fees for the extended use of the container are charged by the shipping company. Under certain conditions, it is possible to apply to the shipping company for an extension of 10-14 days, or even up to 21 days. Free Storage, on the other hand, is the storage fee charged by the terminal for containers, with the free storage period generally lasting 3-7 days, which is often difficult to apply for.
- Suggestions to Avoid Demurrage or Storage Fees:
- Situations Requiring Extension Requests:
1.1 The destination port is far from the actual customer warehouse, requiring additional time for transportation arrangements.
1.2 Slow customs clearance at the destination port leads to prolonged storage time for goods.
1.3 During peak transportation seasons, increased export demand and unstable shipping schedules result in longer waiting times for ships at the port.
- Strategies to Avoid Demurrage and Storage Fees:
2.1 Maintain good communication with freight forwarders or shipping companies to obtain accurate Free Time information promptly.
2.2 Plan the transportation of goods reasonably, choosing the most suitable unloading port and mode of transport.
2.3 Prepare customs clearance in advance before the goods arrive at the destination port to ensure timely removal from the storage area.
2.4 Collaborate with reputable logistics companies that have good industry credentials to ensure smooth transportation of goods and reduce potential risks.
