Purpose
Demurrage and Detention charges are essential components in the logistics and shipping industry, designed to ensure efficient use of resources and prompt return of equipment. Understanding and managing these costs is crucial for optimizing operational efficiency and reducing financial impact.
Demurrage Costs
Description
Demurrage refers to fees charged when a full container remains at the port or terminal beyond the agreed-upon free time. These charges are typically paid to the ocean carrier.
Calculation
The system calculates demurrage by counting the number of days between:
Actual Full Container Discharge at Port of Discharge (POD) and
Full Container Gate Out
Detention Costs
Description
Description
Detention occurs when the consignee or another party retains the container for longer than the allowed free time after it leaves the terminal.
Calculation
The system calculates detention by counting the days between:
Actual Full Container Gate Out and
Actual Empty Container Gate In
Combined Demurrage & Detention
Description
Combined Demurrage & Detention charges apply when a container is not returned within the agreed time. The total time from arrival at the port to return of the empty container is measured. If this exceeds the free time, charges apply for each excess day.
Calculation
The system calculates combined costs by measuring the time between:
Actual Container Discharge at POD and
Actual Empty Container Gate In
Once the system has the actual discharge timestamp, it begins tracking time automatically.
Storage
Description
Storage fees are paid to the port (not the carrier) for containers that remain in the terminal beyond the free time.
Calculation
The system calculates storage time by measuring the number of days between:
Actual Full Container Discharge at POD and
Full Container Gate Out
Configuration
To configure Demurrage and Detention in your system, follow these steps:
Access Configuration
Go to Control Tower → Cost Management → Surcharges.Set Surcharge Type
Choose Surcharge as the type. For example, for Ocean, select Detention.
Define Free Time
Set the number of free days allowed for demurrage and detention as per your shipping agreements.Note: The first day is always free and must not have any cost applied.
Establish Calculation Rules
Ensure the system is configured to calculate based on the correct milestones (e.g., Gate Out to Gate In).Ongoing Monitoring
Regularly review and update these settings to reflect your current agreements and logistics needs.
If any Demurrage, Detention, or Storage costs apply, they will be displayed at Container Level within the Transport Order or Container Grid.
🧮 Example Scenarios
Ongoing Process
If the container has not yet been returned empty, the system will calculate the ongoing cost from the last available milestone (e.g., Full Container Gate Out) until today.
Completed Process
When both key milestones (e.g., Gate Out and Empty Gate In) are set, the process is considered complete and displayed as finalized (grayed out).
⚠️ Important Notes
The calculation always uses UTC timestamps.
Example: If your local time is 1 AM and UTC is 11 PM (previous day), UTC will be used for the cost logic.The calculation consider all stops after Port of Discharge