The definition of “line free days” is the number of days allowed by the shipping line for the customer to pick up the full container for unpacking, take it to their warehouse, unpack and return the empty to the container depot nominated by the shipping line.. Difference between House bill of lading and Master bill of lading, Do you have an educational qualification in Shipping, Freight or Logistics. In all cases, the shipping line will look to the consignee on the bill of lading for any destination related charges, unless someone else offers to take the responsibility.. Hi Hariesh, Foreseeable hidden costs in shipping include: Charges if your supplier sends your goods to the UK; Having your goods sent to a UK port, (aka CFR or CIF shipping terms) can seem like the easiest and cheapest way of importing goods – however, in actuality it’s the riskiest. or simply send a tweet about what you are looking for or drop a mail.. Hi all, I am Hariesh Manaadiar, the author of this niche resource on shipping and freight.. You can interact with me via comments on the posts or via. If you request additional line free days from the shipping line they may ask if it is for demurrage or detention.. Are liners and ports looking at the same watch? Flat rate shipping: A single rate for all orders; Price based shipping: The shipping price is based on the total price of the items being purchased. Equipment Lift-OFF Charge: LFO: 500: INR: ALL 20' Per 20' Equipment Lift-OFF Charge: LFO: 750: INR: ALL 40' Per 40' Equipment Survey Charge: SRY: 700: INR: ALL 20' Per 20' Equipment Survey Charge: SRY: 700: INR: ALL 40' Per 40' Facilitation Processing Fees: FPF: 1,600: INR: All types: Per Container: High Seas Sales: TRN: 2,500: INR: All types: Per B/L: IGM Amendment Charges: IGA: 10,000+Actuals: INR: All … Who should take up this responsibility? Thank you for the informative article Some of these terms can end up as charges on a shipping bill. Demurrage free days offered by the shipping line = 7 days, Detention free days offered by the shipping line = 10 days, Demurrage = 4 days (2nd July to 8th July is free, demurrage from 9th July to 12th July) – to the shipping line, Detention = 0 days (10 days free so 12th July to 21st July is free, empty returned on 19th July so no detention), Port Storage = 8 days (2nd July to 4th July falls under port free days, so from 5th July to 12th July, 8 days of storage applicable) – to the port directly or via the shipping line, Container moves out on the 9th July and empty returned on the 19th July, So there will be Demurrage/Detention for 11 days payable to the shipping line, Shipping line offers X days as free for the full to be picked up and empty returned in the case of imports and vice versa for exports, This means the client has X days to pick up the full container and return the empty to the nominated depot and vice versa for exports, If the time frame exceeds X days, then the shipping line will bill the client for those many days that the container was in the custody of either the consignee or the shipper. The acceptance of early arrival containers is at the discretion of the Port/Terminal Operator.. A charge levied by the port for a container that needs to be shifted around within the stacks.. Multiple shipping would mean different items are shipped in several boxes, usually from different places with a shipping charge for each item. Please find the tables below, also please note it’s for reference only (subject to change). When it comes to international trade, majority of the buyers and sellers use Incoterms to decide on what each other’s responsibilities and liabilities are in terms of the business, especially related to costs.. Generally, there is very little room to manoeuvre in terms of additional and unbudgeted costs incurred on the shipment and therefore in their own interest it is important that the buyers and sellers take necessary precautions to ensure that all known costs relating to the business are discussed and finalised before the shipment commences.. You can not pay storage charges directly to terminal. The price may go either up or down as the total price of the order increases, but the price tiers are defined by the price of the order. IMPORT OF A4 SIZE PAPER Posted By: Manya Impex We are manya impex importer and export from India. A. Storage/demurrage charges at destinations. Welcome to the world of Shipping - Its all about you! Hi there! Who will inform the customer when to return or can the customer actually read the notice of return somewhere? Charges and Freight Costs Window - Charges Tab. Very well done my friend. So now the overdue bill is pushing around. The last day for returning the containers on 29/4 but were dehired on 30/4. Now, regarding port charges, one day you should do an article on how to deal with the “other port charges” when trading in dry/wet (and I suffered them in liners also). Hover over a field to read a short description. Advancement and Demurrage Slab. We are always try to give practical based knowledge, If you have any query please write to us. I have had to defer a 40ft FCL export from Felixstowe. Choose Actions, then choose Charges and Freight Costs. Do you want to load the container on VIA basis? It includes Steel coils, Vehicles etc. What is a Switch Bill of Lading and when and why is it used..?? There are several charges associated with a shipment and demurrage, detention, port charges can be considered as “unexpected, non-budgeted, uncosted, unforeseen” charges because no one in their right minds wants to incur these charges.. Can the consignment package released after paying it so he can use it to pay the overstay payment in a country. If the days are extended, we must charge for the use of the container according to the current rates shown below. I would only create an item in Inventory if you want the same wording appearing each time you want to add shipping to an invoice. Local Charges Location * Try focusing on the search field and typing the letter 'a'. But there are several discussions as to whether demurrage and detention charges are justified.. You can decide which side you are on.. Well in the case of imports, the consignee would be liable for the same and in the case of exports, the shipper would be liable for the same.. ... then you can be hit with … how these terms and free days are defined, demurrage and detention charges are justified, https://www.shippingandfreightresource.com/pros-and-cons-of-a-consol-box/, Executive Insights – Philip Teoh – Lawyer and Maritime Arbitrator, Port and Starboard on a ship – what it means, 2021 claims its first casualty – 36×40′ containers fall off Ever Liberal, Roles and responsibilities of Classification Societies. The charging of the demurrage and detention by the shipping line is their way of getting some compensation for the period that this container was out of the revenue generating cycle.. 12.SCS/SCF/PTF/PCC. Port storage may also happen for containers that were short shipped (for example a vessel terminates its operations and sails before schedule) or transhipment containers that have been sitting at the port for long awaiting a transhipment vessel.. The charge will apply to all bookings that are taken on these trade lanes. Note: To use this feature, one of the lines must have a non-null Ship Method. Now, If due to late custom clearance or transportation your container gated in at port on 08/03/2018 after vessel cut off then you have to take permission from the shipping line to load this container on planned vessel Emirates 007 by paying extra money. Manifested and Local Charges. Some ports/terminals allow the stuffing (packing)/destuffing (unpacking) of the containers within the port area and charge customers based on the port tariff.. Thousands of containers overboard in worst containership disaster-ONE Apus, Difference between a Liner and Tramp service, Difference between Maritime, Shipping, Freight, Logistics and Supply Chain. After that the container reached Ludhiana on 15th June and the shipping line send us an invoice of Rs 29 Lakhs ( approx ) with charges of ( ground rent + demur rage + detention ). Different route means different calculation method. In some countries, specially in Argentina and Brazil, they are “charging” up to USD 40k per cargo holds approvals (Customs, unions, surveyors) you either pay or stay ballasting per another 10 days.. for what I know is usually paid by the captain with the money they hold in the safe.. but after that I don’t how it goes btwn charterers and shipowners .. can you please elaborate? It includes loading charges and charges paid to the … Indian Terminal Handling Charges (THC) Indian Inland Haulage Charges. Please share your views. A charge levied by the port for a container that arrives in the terminal after the stacks into which it is to be taken has been closed.. The best option would be for you to check with the shipping line in your country how these terms and free days are defined.. Bringing you industry-specific expertise; whatever you’re shipping, wherever you’re shipping it. When it comes to international trade, majority of the buyers and sellers use Incoterms to decide on what each other’s responsibilities and liabilities are in terms of the business, especially related to costs..Generally, there is very little room to manoeuvre in terms of additional and unbudgeted costs incurred on the shipment and therefore in their own interest it is important that the buyers and sellers take necessary precautions to ensure … Does the concept of DM/DT and free days include working days only or weekends as well? Can I pay my storage costs directly to the port? There are many entities involved in the process of shipping a container from Point A to Point B, each with their own cost component, all of which have to be covered either by the seller or the buyer.. Demurrage, detention and port charges are just some of these costs that may be applicable in a shipment.. What is a reefer container and how does it work..?? Hello, Many people asking me about AD CODE letter, meaning, full form so, let's get started AD CODE (Authorised Dealer Code) ... First step to start export business I am getting lots of mail & WhatsApp regarding start to export business. In this case i want to ask you that why i have been charged ( damuage & detention ) all together from the day one till the date of destuffing the goods, either the shipping line can charge dammurage or Detention but not both. This usually happens when a container is brought in for one port/vessel, but there may have been a change of destination or change in ship or the container is required to be inspected.. Is an action taken during the load/discharge operation of a container ship wherein a container may be taken off the ship from one stow position and put back into the same or different stow position for purposes of cargo operation.. Shipping on ups.com is simple. You can navigate into the list of results by using the arrow keys. Charge levied by the port/terminal for amending or cancelling any documentation/activity lodged with them.. ... then you "rent" the container from the steamship line that you use on the shipping from the USA. Recently after Pulwama attack , the government of India has introduced new HS code 98060000 for all goods origination in or exported f... First step to start international export business, DONT PAY ANY ADVANCE FOR A4 COPY PAPER IMPORT TO INDIA, The Drug ship and mysterious death of UN official. Pass some (or all) of the shipping cost on to your customer as … Terminal handling charges (THC) are effectively charges collected by shipping lines to recover from the shippers the cost of paying the container terminals for the loading or unloading of the containers and other related costs borne by the shipping lines at the port of shipment or destination. I have a question related to this topic. In that case is there any extra cost I’ll need to pay due to the delay caused by other importer? Our network and understanding of these key trading and commercial centers means that we can provide world class services to our customers. But in the majority of the countries there is a difference between demurrage and storage.. Local Charges & Tariffs (New) Local Charges & Tariffs (Old) For example, the Amazon Easy Ship Weight-Handling Fees for 800 gms package being shipped to a regional location will amount to INR 69 i.e. MSC also provides integrated network of road, rail and sea transport resources which stretches across the globe. The other option is to use DHL or Fedex for high value products – now these shipping options cost extra money, you will need to pay custom duty (handled by the DHL guys) and there are some extra charges too, still much cheaper than using EMS. Dry Cargo Reefer Cargo Project Cargo. Please clarify. Charge that may be levied by the port for additional handling done for containers that have already been received in the port for export or required to be moved to an area for inspection for imports etc.. This is the document which is presented to the shipping line at POD, and then only cargo can be cleared. This may be charged for a full container that is uncleared (imports) or a full container yet to be shipped (exports) or for an empty container sitting in the port.. Example would be passing an amending document for change of destination of a container, or the export of that container needs to be stopped etc.. Is a charge levied by the port for the prolonged stay of a container at port after expiry of free days.. ... Hi I am using Xero almost from 1 year. 2,881 shipping charges from china to india products are offered for sale by suppliers on Alibaba.com, of which sea freight accounts for 21%, freight agents accounts for 10%, and air freight accounts for 7%. This means for those 11 days the container was out of the control of the shipping line which meant that this particular container did not yield any revenue for the shipping line for these 11 days.. thanks for the good article. BL is issued by the carrier (Shipping Line/NVOCC). What would you like me to write about..?? Customer picked up empty container, stuffed and returned to port/terminal with in 3 days, however customer has 5 days free time. Keep up the good work. While some of the port charges are valid and unavoidable, demurrage, detention and some of the port charges (like port storage, early arrival, late arrival, amendment, shifting etc) are entirely avoidable if everyone in the chain follows the process that they need to follow.. In these cases the best solution is to have an open and transparent discussion with the shipping lines so they may take some commercial decisions.. One quick question, If I import LCL (2-3 pallets). Understanding what these terms are and what they are applied for can help you to avoid these types of charges in the future. Thanks. Certain ports operate 7 days a week and some ports operate 5 days a week. In some countries like Saudi Arabia and Japan, the term demurrage seems to be used to denote storage in the port/lines terminal.. Although the most common market practice is to combine demurrage and detention, there are several cases where these are charged separately and therefore it is important to know the difference between demurrage and detention.. Demurrage is a charge levied by the shipping line to the importer in cases where they have not taken delivery of the full container and move it out of the port/terminal area for unpacking within the allowed line free days.. COSCO has a total of 166 container ships with a capacity of 866,260 TEUs and owns more than 130 vessels. Routes Freight Components; Southeast Asia: The logistics company I used is charging me over three times the published Port of Felixstowe published daily storage charges. : Europe - Far East Europe - Middle East/Red Sea/Indian Sub-Continent US to/from Europe. Hence avoid using EMS for products that are priced over $30. In various destination ports, the definition of demurrage and detention varies and hence the line needs to know where their exposure lies.. And your question is what is the VIA permission? Useful article which i came across trying to find an answer to the following:-. Combined demurrage/detention calculation example: In above example, if “combined demurrage/detention” principle was to be used, then. When they do occur these charges may create quite a financial impact on the whole business and sometimes these costs could be so prohibitive that some customers abandon their cargoes at destination due to these costs.. Let us look at what is demurrage, detention, causes of demurrage and detention, why is it charged, who charges it and who pays for it .. The acceptance of Late arrival containers is at the discretion of the Port/Terminal Operator.. We take details of shipment in advance B/L, invoice packing list for import and try to file documents in customs for clearance after IGM is file one day before shipment arrival in LCL case as shipment is destuffed at CFS so we can take delivery on same day. Additional terms and fees to local agents of the line usually via port forwarding. Our Clients use Ocean Insight’s software to get real-time alerts on containers that are stuck in port. YOUR INDUSTRY. This helps them take action as well as identify troublesome ports for avoiding future demurrage and detention fees. Hi Eleni When raising the sales invoice I would add a line item for thr shipping. For example, the booking party may pay the line and other vendors all charges from packing the cargo into the container, inspection charges, customs clearance, cargo dues (wharfage), documentation charges, VGM, transportation to the port, THC at the load port, shipping line charges, bill of lading fees etc.. The planned vessel was for 21.03.2020 and we got an email from our customer on 18.03.2020 to hold the shipment due to Covid -19 pandemic in USA and we immediately email the shipping line to hold the shipment. MSC delivers a … Freight Charges and Freight Fees: Tips and Advice On Common Freight Shipping Costs, Charges, and Fees. Avoiding common mistakes in international shipping from the USA using FCL. Each & every container has vessel cut off, explained in below example before that cut off you have to enter your container at port, Suppose, if you have export shipment from Ahmedabad ICD to Jebel Ali port and vessel plan is as per below, As per above vessel plan, your container must be reached at Mundra port before vessel cut off 07/03/2018 after customs clearance. UK Bonded Warehouse ... You don’t have to worry about storage charges at the airlines, as we guarantee the collection of your goods … Break Bulk: Break Bulk Cargo: The cargo which can be counted (Other than Containers). A product price is always quoted according to an Incoterm.Basically how much of the shipping you pay the supplier to handle. Are the methods for calculating demurrage/ detention for containers and demurrage/ detention for bulkers/ tankers same? Notify me of follow-up comments by email. There could however be cases where the consignee could not clear the container because they didn’t receive the relevant documents from the shipper in time.. Is there a connection between Incoterms® and the shipping line..?? Using above dates, since the port only offers 3 free days which expired on the 4th of July , then there will be 8 days of port storage till the 12th of July to be paid alongwith the demurrage.. Man, I have just found this site and I’m devouring every article, refreshing some old concepts, learning some new ones. The term shipping originally referred to transport by sea but in American English, it has been extended to refer to transport by land or air (International English: "carriage") as well. But current practice in Vietnam is that carrier/ forwarding port charges always higher than published daily storage charges as there is service arrangement between the carrier and terminal. 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