TEU by Port (Container Storage)

Demurrage and detention charges double in a year

Jun, 29, 2021 Posted by Sylvia Schandert

Week 202127

Demurrage and detention charges imposed on shippers by containers lines have soared at unprecedented rates globally over the last year – more than doubling, on average, at the world’s 20 largest container ports – according to the Demurrage & Detention Benchmark 2021 report published today by Container xChange, a leading global online platform for the leasing and trading of shipping containers.

However, the rates are “hugely inconsistent”, with large differences apparent both by port and by carrier, the new annual report highlighted, varying from just $132 at Busan in South Korea to more than $2,500 two weeks after discharge at the Port of Long Beach and neighbouring Los Angeles.

Across the world’s 20 largest container ports, the report found that average Demurrage and Detention (D&D) fees levied by container lines on customers two weeks after a box was discharged from the vessel more than doubled across ports and shipping lines between March 2020 and March 2021, climbing 104% or the equivalent of $666 per container across all container types. None of the world’s top 20 ports by throughput saw a decrease in D&D fees over the period.

On average, D&D charges in March this year were $720 per box across standard container types two weeks after the box discharge from the vessel. Demurrage fees are charged when a container is left inside a container terminal beyond the allowed number of free days, while detention is a charge for extended use of the container until it is returned empty to the shipping line.

Source: Lloyd’s Loading List

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