Detention
Term Summary
Detention is a fee charged by shipping lines when containers are kept outside the terminal or depot beyond the allowed free time. This article explains what detention is, how and when these charges apply, the difference between detention and demurrage, recent trends in global detention fees, and offers examples of typical charges.
Detention is a fee imposed by shipping lines when a shipper or consignee holds the shipping container outside the terminal or depot for longer than the free time allowed. This charge applies to the period when the container is away from the port—either in the exporter’s or importer’s custody—and is not returned within the stipulated timeframe.
Key Terms and Definitions
| Term | Definition |
|---|---|
| Detention | A fee for using a shipping container beyond the standard free time given, outside the port or container yard. |
| Free Time | The period (typically 7-14 days, varies by contract/port) during which the container can be used free of charge. |
| Demurrage | Distinct from detention; demurrage is charged when a container stays inside the port beyond its free time. |
| Container Depot | An off-port facility where empty containers can be returned or collected. |
When Does Detention Apply?
- Import Detention: After a container is picked up from the terminal, if it is not returned (emptied and sent back to the depot) within the free time, detention charges accrue per extra day.
- Export Detention: When an exporter holds a container outside the terminal longer than the allotted free period before loading for export, detention is charged.
Example of Detention Charges
| Route | Free Days | Detention Fee (USD/Day/20ft) | Detention Fee (USD/Day/40ft) |
|---|---|---|---|
| China – USA | 7 | $75 | $120 |
| China – Europe | 10 | $65 | $105 |
| China – Australia | 7 | $70 | $115 |
Why is Detention Charged?
- Equipment Utilization: Shipping lines own and manage containers as valuable assets. Detention fees encourage timely returns so containers can be circulated efficiently.
- Supply Chain Management: Avoids unnecessary bottlenecks or shortages caused by prolonged container holds.
Difference Between Detention and Demurrage
| Aspect | Detention | Demurrage |
|---|---|---|
| Location | Charges apply outside the terminal or depot | Charges apply inside the terminal |
| Trigger | Container not returned after free time | Container stays at terminal beyond free time |
| Responsibility | Shipper/consignee holding the container | Shipper/consignee failing to clear cargo on time |
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