Understanding the Difference: Demurrage vs Detention with Wigmore Logistics

Are you tired of getting confused between demurrage and detention charges when it comes to your logistics operations? Look no further, because in today’s blog post, we have partnered with Wigmore Logistics to help you understand the difference once and for all! Whether you’re a seasoned professional or just starting out in the industry, this comprehensive guide will break down these two terms in a way that is both catchy and engaging. So sit back, relax, and get ready to become an expert on demurrage vs detention with Wigmore Logistics!

Introduction to Demurrage and Detention

Demurrage and detention both refer to the charges assessed by shipping companies when cargo is not loaded or unloaded within the specified timeframe. These charges are meant to cover the costs associated with delays, including lost revenue from having the vessel out of service.

Detention is charged per day and begins accruing on the first day that cargo is not loaded or unloaded. Demurrage, on the other hand, is charged for each hour that cargo is not loaded or unloaded beyond the specified timeframe.

It’s important to understand the difference between these two charges because they can have a significant impact on your bottom line. Wigmore Logistics can help you navigate these charges and avoid costly delays.

What is Demurrage?

Demurrage is a charge assessed by a carrier for the detention of their equipment beyond the free time allowed. Free time is the period of time allotted by the carrier for loading, unloading, and handling of cargo without incurring a charge. After the free time has expired, demurrage charges will accrue at a specified rate until the equipment is returned to the carrier.

Detention is a charge assessed by a shipper or consignee for the use of their facilities beyond the free time allowed. Free time is the period of time allotted by the shipper or consignee for loading, unloading, and handling of cargo without incurring a charge. After the free time has expired, detention charges will accrue at a specified rate until the cargo is loaded or unloaded.

What is Detention?

Detention is the time a truck driver spends waiting to either pick up or drop off a load. This time is unpaid, and can often be quite long – sometimes even days. Drivers are not paid for this time, and it’s at the discretion of the shipper or receiver as to how long they can keep the driver waiting. Detention is a huge issue for drivers, as it effectively reduces their pay. Some carriers have started charging detention fees to shippers and receivers in an attempt to offset this issue, but not all do.

Wigmore Logistics understands that detention can be a frustrating experience for drivers. That’s why we offer our Detention Service, which provides drivers with access to our facilities where they can take a break, shower, and relax while they wait for their next load. We also offer a per diem allowance to help offset the costs of meals and other incidentals while our drivers are detained.

If you’re a driver who has been detained by a shipper or receiver, we want you to know that we’re here to help. Contact us today to learn more about our Detention Service and how we can help you get back on the road as soon as possible.

Differences between Demurrage and Detention

When it comes to shipping containers, demurrage and detention are often used interchangeably. However, there is a big difference between the two terms.

Demurrage is a fee that a shipper pays when they keep a carrier’s equipment for an extended period of time beyond the allowed free time. Detention, on the other hand, is a fee that a shipper pays when they delay a carrier’s equipment at their facility.

Both demurrage and detention can be costly fees, so it’s important to understand the difference between the two. Here’s a more detailed look at each:

Demurrage:
– Demurrage is charged by the day and starts accruing after the free period expires
– The free period is typically 5 days for import containers and 3 days for export containers
– Demurrage fees are typically $50-$100 per day
– If you need to extend your free period, you can request an extension from your carrier
– Demurrage fees are avoidable by returning your equipment within the allowed time frame
Detention:
– Detention is charged by the day and starts accruing when you delay a carrier’s equipment at your facility
– The free period is typically 24 hours for both import and export containers
– Detention fees are typically $50-$100 per day
– You cannot request an extension for detention fees
– Detention fees

How Wigmore Logistics Can Help You Avoid Both

Wigmore Logistics offers a variety of services to help you avoid demurrage and detention charges. We can provide you with storage space for your cargo, as well as the necessary equipment and manpower to load and unload your shipments. We also offer an array of transportation services, including trucking, rail, and maritime, to get your cargo where it needs to go quickly and efficiently. With our years of experience in the logistics industry, we can help you avoid costly delays and ensure that your shipments arrive on time.

Tips for Minimizing Charges for Demurrage and Detention

1. Keep track of your container movements: Knowing where your containers are at all times can help you avoid demurrage and detention charges. Use a system like Wigmore Logistics to track your inventory and get real-time updates on the status of your containers.

2. Plan ahead for delays: If you know that your container will be delayed in transit, make arrangements with the carrier in advance so that you can avoid paying demurrage or detention fees.

3. Understand the terms of your contract: Make sure that you understand the terms of your contract with the carrier, including any provisions for demurrage or detention charges. This will help you avoid unexpected fees.

4. Work with a reputable logistics provider: Working with a reputable logistics provider can help you minimize demurrage and detention charges. Wigmore Logistics has a team of experts who can help you navigate the complex world of international shipping and avoid costly delays.

Conclusion

Understanding the difference between demurrage and detention can help you with successful container shipping with Wigmore Logistics. Demurrage is a charge for keeping containers beyond the agreed-upon time, while detention is a charge for opening or unloading containers before the agreed-upon time. When working with Wigmore Logistics, it’s important to understand both of these concepts in order to avoid unexpected costs. With this knowledge, you should be able to ship your goods successfully and enjoy cost savings along the way!