Detention, Demurrage, Per Diem and Storage Accessorials Defined in 100 Words

Definition of Detention, Demurrage, Per Diem and Storage

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  Detention

  • A charge made at the time of loading or unloading a trailer / container because the driver is being held beyond their allotted free time.

  • Typically, there are 2 hours free time before detention charges begin.

  • Detention is billed on an hourly basis and is a negotiable charge at time of contract, but not at time of invoicing.

• Demurrage

  • Demurrage is a charge assessed when cargo is left at the terminal beyond the allotted free time.

  • Congestion at pick-up or delivery or the location being closed is not a free pass. The clock will continue ticking, so it is imperative to address demurrage quickly.

  • Demurrage is billed at a daily rate and escalates as the days increase.

  • Demurrage charges need to be paid before a container can be pulled from the yard.

• Per Diem

  • A per diem charge is a fixed rate per day that a carrier charges against another carrier or customer for use of its containers, trailers or chassis.
  • Per diem charges accumulate until the equipment is returned to the port or rail terminal.

• Storage

  • Storage charges are assigned to the shipper or consignee for holding containers or trailers at a terminal beyond the free time allotted to them.

If you want to know more about these charge we invite you to read “Demurrage, Detention, Per Diem & Storage – Definitions & How to Avoid”.

FMCSA has a listing of various freight terms, check out our glossary of terms or download the following eBook of terms.

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