Goods demurrage, port congestion! Multinational port fee reduction policy

Goods demurrage, port congestion! Multinational port fee reduction policy

First: FREEDEMURRAGE，FREE STORAGE，DETENTION，DEMURRAGE

01 FREE DEMURRAGE

Refers to the free time of container use, that is, the period between the time after picking up the goods from the yard and the time when the container is returned, beyond which the container holding charge will be charged. This period depends on the regulations of different shipping companies.

After heavy ark arrives destination port, can be free commonly a few days in dock stow, box also can be used freely a few days.The free stockpiling period and free container period are different in different ports in different countries, generally 7 days. You can also apply for the extension of free container period at the port of shipment. It depends on the specific shipping company/route.

If the free shipping period is up, the shipper can discuss with the forwarder and apply to the shipping company to extend the free shipping period of about 3~4 days.If the company has a large quantity of goods and has a contract with the shipping company, we can apply for a free shipping period of 14 to 20 days.

02 FREE STORAGE

Refers to the time allowed for free storage at the wharf, beyond which a demurrage fee will be charged.The stack-free period for container stacks at the terminal depends on the regulations of the terminal.

Note: the free period and the free period are two different concepts.

03 DETENTION fees

Also known as box fee, is to point to exceed the cost of free box period, even the use of shipping company boxes more than the time of free box, the shipping company to charge you for the detention of the box, generally calculated by the day, the general free box period is 7 days, the specific to see the provisions of the shipping company.

04 DEMURRAGE

Also known as the storage charge, that is, the overdue storage (occupation/use of the terminal) charge caused by the failure to remove (empty) the container in excess of the free stacking (use) time stipulated by the terminal, which shall be charged by the port.Containers can be piled up free of charge on the dock for a certain period of time, generally 7 days, there are some ports is about 3 days, the specific provisions to see the port.

05 Defining the way

Exports:

Free container period: from the start of empty container towing to the end of heavy container returning to the site or dock.

Free stowage period: from the return of heavy container to the site or dock to the expected departure date.

Imports:

Free container period: from the time when the container is put out of the dock, to the date when the container is returned to the dock yard.

Stowage free period: from the unloading date until the loading tank leaves the dock.

06 Calculate the date

Collection of hold-over charge = start time - (1 day to end) > hold-over period

Demurrage charge = start time - (end time 1 day) > demurrage period

07 Charging mode

Settlement in local currency, overdue per container per day.The longer the period, the higher the daily cost.For example, maersk's small boxes are free for the first 7 days, 55 yuan per day for 8-15 days, 150 yuan per day for 16-20 days, and 300 yuan per day after 21 days.

Q&A

Is the calculation period of demurrage charge and demurrage charge the same?

The calculation period of the demurrage charge and demurrage charge is not the same.According to the situation of each port is different, some calculate at the same time (namely port + container), some calculate demurrage fee first, after calculating the demurrage fee.There are also some ports where the storage and container charges start to be calculated on the same day, overlapping for 7 days.

Can we apply for exemption from the charges of demurrage and demurrage?

Demurrage charge can be waived in advance to the shipping company, generally can apply for 14 days, or even longer.Demurrage fee should apply to port wharf, cannot apply for derate commonly.

Is the free period the same for different types of containers?

Different types of containers, free period is generally not the same, and different shipping companies have different free period.The free period of ordinary containers is generally 7 days, TANK TANK is generally 3 days, and special containers such as freezers and frame boxes are generally about 6 days. Different shipping companies also have differences in details.

Where can I know the length of the free period?

Generally, it will be reflected in the release notice, and some will be displayed on the bill of lading.But if the application takes longer, it will not be printed on the bill of lading.

Second: the multinational port related fee reduction policy

01 China: the amount of preferential relief measures will exceed 1 billion yuan

On March 3, the executive meeting of the state council pointed out that the logistics cost of foreign trade enterprises should be further reduced.From March 1 to June 30, the port construction fee for import and export goods will be waived, and the government fixed prices such as port service fee and port facilities security fee will be reduced by 20%.It is expected that by the end of June, the total value of various preferential relief measures for major port enterprises will exceed 1 billion yuan.

Eleven local ports, including guangzhou, shenzhen, zhuhai, Shanghai, tianjin, xiamen and ningbo, have introduced preferential measures.

02 Singapore: 50% discount on port charges

In order to mitigate the impact of novel coronavirus outbreaks on passenger ships, the maritime ports authority of Singapore (MPA) has decided to offer a 50% reduction in port charges for all cruise and ferry liners that have a port of call.Singapore's preferential policies have helped ease the pressure on cruise lines that have been hit hard by the outbreak.

The MPA said the new offer would be granted between March 1, 2020 (solstice) and August 31, 2020, on top of the existing overall port fee offer.

"All cruise ships and regional ferries with a stay of up to five days in port, as well as port carriers carrying passengers, are eligible for the new offer.More than 600 ships are expected to benefit, resulting in total savings of more than $1 million over six months."

03 South Korea: 5 billion won operating bonus

The busan port corporation (hereinafter referred to as "busan port") said on March 19 that it will invest 18.7 billion won (about 110 million yuan) in support funds to help the port and shipping industry which are in difficulties due to covid-19.

A total of 5 billion won (about 30 million yuan) will be awarded to vessels sailing in busan, China and Japan within one year.The support amount will be distributed on a case-by-case basis according to the ratio of the total number of ships entering busan port to the number of arrivals of each shipping company.At the same time, for the goods that need to be transshipped at other ports, partial transportation expense subsidies will be given, so as to ease the operating burden of shipping companies.In addition, since the epidemic will lead to a reduction in throughput, the incentive for shipping companies to attract the volume of transit containers will be expanded.

04 Slovenia: port charges for all cargo ships will be halved

An initiative initiated by the port of kopec and the slovenian shipping and freight forwarder association has resulted in a temporary reduction in port charges by the slovenian ministry of infrastructure until the end of September.

Minister Jernej Vrtovec issued a statement during his visit to koper port on 17 April to help traders during the covid-19 pandemic.The minister has arrived in koper to inspect the start-up of the port infrastructure project.Meanwhile, Jernej Vrtovec said port charges on all cargo ships would be halved by the end of September 2020.

05 Nigeria: no storage and demurrage charges

The Nigerian port authority (NPA) has instructed all terminal operators to suspend storage and demurrage charges on all terminals during the federal government's "home rule", the daily mail reported.

In response to business concerns and to ease the burden on businesses, NPA has instructed all terminal operators to extend the suspension of storage and demurrages at all terminals for a further 14 days, effective April 13, 2020, said jatto Adams, NPA's general manager of enterprise communications and strategy.

The Nigerian shipper's council (NSC) said it had negotiated a 30 per cent cut in charges for transporting goods from the port after meeting with relevant associations and trade unions.The new rate took effect on 22 April and will remain in effect for the duration of covid-19.

06 Liberia: elimination of container demurrage

On 24 March, the liberian national port authority issued a statement in Monrovia announcing the abolition of demurrage charges on all containers destined for the country.The decision will take effect on April 1, 2019.