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Understanding Detention Fees in Ocean Shipping

What is Detention Fee in Ocean Shipping?

Detention fee refers to the charge imposed by ocean carriers for exceeding the allotted "free" days for keeping a container out of the port.

Why is Detention Fee Used?

  • Detention fees are utilized by ocean carriers to encourage the prompt return of containers for continued transportation.
  • Importers are discouraged from prolonged container storage through the imposition of these fees.

What If I Need to Store Cargo for an Extended Period?

  • If you need to store your goods for an extended period without incurring detention fees, consider unloading the container in a warehouse.
  • Warehousing costs are typically more cost-effective compared to paying detention fees.
  • The container can be returned to the carrier on schedule by the trucker when stored in a warehouse.

Key Takeaways

  • Detention fees are charges for exceeding the free days a container can be kept out of port.
  • They are used to incentivize timely container return for carriers.
  • Importers can save on costs by unloading containers into a warehouse for extended storage.
  • Warehousing is a cost-effective alternative to detention fees.

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