In import-export activities, understanding port-related charges is essential for optimizing profits. Two of the most troublesome charges for cargo owners are DEM and DET. So, what do they mean, and how can businesses avoid unnecessary costs?
1. What is DEM (Demurrage)?
DEM (Demurrage) is the container storage charge at the port yard.
• Nature:
This is a fee charged by the shipping line when a container stays at the port yard beyond the allowed free time.
• Charging period:
It is calculated from the time the container is discharged to the port yard (import cargo) or delivered to the yard (export cargo) until the container is picked up out of the port gate (Gate-out).
• Common causes:
Delays in customs clearance, cargo inspection, or incomplete documentation preventing the cargo from being released in time.
2. What is DET (Detention)?
DET (Detention) is the container usage charge outside the port, usually at the consignee’s warehouse.
• Nature:
This is a fee charged by the shipping line when the container is kept at the customer’s warehouse for loading/unloading longer than the permitted free time.
• Charging period:
It is calculated from the time the container exits the port gate (Gate-out) until the empty container is returned to the designated depot specified by the shipping line.
• Common causes:
Lack of labor for loading/unloading, slow stuffing/unloading operations, or trucking delays during transportation.
3. Quick Comparison: DEM vs DET
| Feature | DEM (Demurrage) | DET (Detention) |
|---|---|---|
| Container location | At the port yard (CY) | At customer’s warehouse |
| Charged by | Shipping line (via port) | Shipping line |
| Charging basis | Exceeding free storage time at port | Exceeding free container return time |
| Purpose | To free up port yard space | To ensure container circulation |
Note:
Besides DEM and DET, you may also encounter Storage Charges. This is a port storage fee charged directly by the port authority (different from DEM, which is charged by the shipping line).
4. Why Are DEM & DET Important?
These charges are usually calculated on a progressive basis. This means the longer the delay, the higher the daily cost. For large-volume shipments involving dozens of containers, even a 1–2 day delay can cost thousands of USD, directly reducing the profit margin of the shipment.
5. Effective Tips to Avoid DEM & DET Charges
To better control lead time and logistics costs, businesses should consider the following:
- Prepare documents early:Complete customs documentation before the vessel arrives so customs clearance can be processed immediately.
- Negotiate additional free time: For long-haul shipments or complicated customs procedures, negotiate extended free time with the shipping line or forwarder (commonly 7 days DEM / 7 days DET).
- Choose a reliable forwarder: A professional logistics provider will closely monitor vessel schedules and remind customers of deadlines to arrange trucking efficiently.
- Check warehouse readiness: Ensure sufficient warehouse space and manpower for immediate unloading once the container arrives.
SONGWIN INTERNATIONAL LOGISTICS VIETNAM CO., LTD
📍 Address: 344 Nguyen Trong Tuyen Street, Tan Son Hoa Ward, Ho Chi Minh City, Vietnam
📞 24/7 Hotline: 083.681.3969 - 0373.262.105
📧 Email: Sales2@songwinlog.com
Songwin Logistics – Reputation Builds the Brand, Professionalism Creates Success.
