Detention Charges are fees imposed by shipping lines when a container is kept by the consignee outside the port or terminal beyond the allowed free time.
How It Works:
- A container is picked up from the port by the importer.
- A free usage period is provided.
- If the container is not returned within this period, detention charges apply.
- Charges increase based on the delay duration.
- Payment is required before further shipments or container release.
Benefits:
- Encourages timely return of containers
- Improves container availability and circulation
- Reduces logistics delays
- Ensures efficient supply chain operations
Example:
An importer keeps a container for 10 days when only 5 free days are allowed, resulting in detention charges for the extra 5 days.