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Detention and demurrage

Demurrage is the time that filled containers spend inside a terminal when imported into the U.S. This is measured from the time they are offloaded from the vessel until the time they are picked up at the port. Detention is the time that containers spend outside the terminal. This is measured from the time between picking the containers up from the port and returning them to the port when they are empty. Demurrage and detention penalty charges will be incurred if an importer does not pick up the filled container or drop off the empty container in the time allotted by the port or carrier. The Federal Maritime Commission regulates detention and demurrage charges in the ocean environment.

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Trucker, Ocean Carrier Accused of Violating Shipping Act Through Improper Fees
January 18, 2024 by Noah Garfinkel|Transport

Dependable Highway Express charged an importer detention and demurrage on behalf of Mediterranean Shipping Co. after the ocean carrier had waived the charge, importer ICL USA said in a complaint to the Federal Maritime Commission. DHE also assessed ICL a 10% surcharge on the fees, in violation of its contractual role as a trucker.

Topics:Customs duty, Detention and demurrage, Trump tariffs
Cosco’s Unfair Fees Led to Almost $2 Million in Damages, US Shipper Tells FMC
January 9, 2024 by Ian Cohen|Ports

A Texas shipper accused major Chinese ocean carrier Cosco Shipping Lines of violating U.S. shipping regulations through unfair detention and demurrage charges, costing it nearly $2 million in damages. Visual Comfort & Co, a shipper of lighting products, said Cosco “refused” to extend free days for containers that couldn’t be returned to the port and declined to divert shipments to less crowded ports, allowing the carrier to charge “astronomical” D&D fees.

Topics:Detention and demurrage