Detention refers to the holding of cargo or a vessel beyond the allowed free time, typically at a port, terminal, or warehouse. This delay often results in additional charges, known as detention fees, which are imposed on the party responsible for the extended holding period.
What Detention Involves
- Cargo Owner: The party responsible for the goods being shipped.
- Carrier: The shipping line or transport company moving the cargo.
- Terminal Operator: The entity managing the port or storage facility where detention occurs.
- Customs Authorities: Officials who may cause delays due to inspections or documentation issues.
Essential Aspects of Detention
Free Time
The period allowed for the use of containers or space without incurring charges, typically specified in the contract of carriage.
Calculation Methods
Detention fees are usually calculated per day or per hour beyond the free time, often with escalating rates for longer periods.
Responsibility
Determining who bears the cost of detention can depend on the terms of the shipment (e.g., FOB, CIF) and specific agreements.
Documentation
Proper documentation and communication are decisive for tracking detention periods and resolving disputes.
Why Detention Matters
Operational Efficiency
Detention charges encourage timely pickup and return of containers, promoting efficient use of equipment and space.
Cost Management
Awareness of fees and avoiding detention helps shippers and consignees manage transportation costs effectively.
Supply Chain Flow
Minimising detention will maintain smooth supply chain operations and avoid disruptions.
Equipment Availability
Prompt return of containers guarantees their availability for other shipments, benefiting the entire logistics ecosystem.