What is Detention and Demurrage?
In maritime logistics, the terms “detention” and “demurrage” function as intriguing yet crucial navigational markers, guiding the flow of cargo through the intricate channels of global trade. These terms encapsulate charges associated with the utilization of containers and cargo holds, exemplifying the delicate equilibrium between time, space, and operational efficiency.
Visualize a bustling port, where ships laden with cargo gracefully dock, ushering in a meticulously orchestrated ballet of loading and unloading. As these vessels discharge containers onto the port, a finite timeframe is allocated for their subsequent release and transportation. Termed “free time,” this duration allows shippers to retrieve their containers without incurring extra costs. However, once this span elapses and the containers linger within the port’s confines, the concept of “demurrage” comes into play.