xChange: Ten leading Chinese ports experienced the biggest increase of demurrage and detention charges from 2020 to 2021
Some of the key findings on demurrage and detention:
Both demurrage and detention increased in 2021 compared to 2020. Across the world’s 20 biggest ports,
the average demurrage and detention charge doubled, going up +104% after two weeks. That’s equivalent to $666 for each container across ports, shipping lines and demurrage & detention combined.
On average, demurrage and detention charges reached $1219 per container across container types after two weeks in 2021.The cheapest is COSCO in Port of Busan, and the most expensive is CMA CGM in both Long Beach and Los Angeles.
The ten leading Chinese ports experienced the biggest increase of demurrage and detention charges from 2020 to 2021. The costs of demurrage and detention went up by +126%.
Demurrage and detention tariffs have two main purposes:
Demurrage
The charge that you pay for the use of the container within theterminal beyond the free time period. For import cargo, the demurrage time is the period from container discharge from the vessel until gate-out of the full container from the terminal. For export cargo, the demurrage time is the period from gate-in of
the full container into the terminal until the full container is loaded on board a vessel.
Detention
The charge that you pay for the use of the container outside of the terminal or depot, beyond the free time period. For import cargo, the detention time is the period from gate-out of the full container until gate-in of the empty container into the restoration point. For export cargo, the detention time is the period from the pick-up of the empty container from the terminal or depot until gate-in of the full container in the terminal.
Port Storage Charges Related costs (but not limited to quay rent) charged by terminal operators for containers staying on the ground. These charges are usually passed by the terminal operator to the shipping line where a margin may be added Compensating the shipping line for 01 the use of its container
Encouraging the merchant to return the container as soon as possible for the shipping line to reuse it and have a fast turnaround
