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Get startedFreight forwarders, importers, exporters and many other parties within the space often hear the terms ‘demurrage and detention’. At Trade Finance Global, we often come across confusion between the two terms, and a not too much understanding about the key differences between demurrage and detention.
To start with, demurrage:
Demurrage is a fine to the buyer which is levied by a courier or freight provider if they do not take their goods away from a port or terminal. Often ports and terminals allow importers to store goods or containers for a number of ‘free’ days, after which charges are applied.
Other than the one issued for being naughty at school, detention is another charge that can be levied by a shipping transport provider for not returning an empty container to a container yard or port after an agreed time.