Tech News, Magazine & Review WordPress Theme 2017
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
No Result
View All Result
No Result
View All Result
Home Supply Chain Updates

New tool compares D&D charges across carriers, ports

usscmc by usscmc
June 9, 2020
New tool compares D&D charges across carriers, ports
Share on FacebookShare on Twitter

For shipments going to European hinterland locations, Hamburg, Antwerp, and Rotterdam carry similar D&D charges. Photo credit: Shutterstock

Online container logistics provider Container xChange is offering a free detention and demurrage (D&D) calculator that will allow shippers to assess the potential cost of D&D charges on the different port-to-port routes, and their comparability across carriers.

With supply chain disruption from measures to limit the spread of the coronavirus disease 2019 (COVID-19) — e.g., extensive blanked sailings, skeleton crews at terminals, and intermittent cross-border congestion — there have been reports of delays in the handling, collection, and return of boxes. This has led to calls from shipper and forwarder associations for carriers to “exercise restraint” and extend free time allocations if required by customers.

“Especially during COVID-19, comparing demurrage and detention (D&D) charges levied by the shipping lines across the world’s biggest ports is important to avoid unnecessary costs,” Florian Frese, marketing lead at Container xChange, told JOC.com.

While no historical data on global D&D levels is available yet — Container xChange only began collating the data this year — the D&D calculator already has more than 20,000 data points from publicly available sources on how much the 10 biggest shipping lines charge for D&D across the world’s top 20 ports.

“While there is an ongoing discussion — if not to say dispute — between shipping lines and freight forwarders and BCOs (beneficial cargo owners) about the applicability and level of charges, there is no transparency on how expensive it can get, and no possibility to effectively compare shipping lines and ports,” Container xChange noted in a statement Tuesday.

Data collected by the tool show that both demurrage and detention charges rise quickly after initial so-called free days to an average of $123 per TEU across ports and shipping lines after seven days and $537 per TEU after 14 days.

Wide variations in D&D charges

An analysis of the Container xChange data also found that D&D charges varied by $190 per TEU on average across the 20 biggest global container ports. Busan in South Korea was the cheapest port with an average of $6.46 per day, compared to $196.88 per TEU per day in Los Angeles. In Europe, Antwerp was the cheapest port in terms of D&D charges, followed by Rotterdam, and Hamburg. 

For shipments going to European hinterland locations, Hamburg, Antwerp, and Rotterdam carry similar D&D charges, but the port of Hamburg comes in as the most expensive with a charge of $65 per TEU per day on Day 14, followed by Rotterdam at $53, and Antwerp at $49.

In an example of how shippers could benefit from comparing D&D charges by carriers calling at different ports, Container xChange noted that Hamburg was $60 per TEU per day cheaper if a shipper chose Yang Ming at $21 per container per day instead of Maersk Line, which charges $76 per container per day in Antwerp.

“Additionally, we can see that all ports (excluding Antwerp exports) have higher demurrage charges compared to detention, which indicates that these ports are prone to congestion,” the Container xChange statement said. “Through raising demurrage charges, ports and terminals try to incentivize BCOs, forwarders, and shippers to pick up containers on time in order to prevent congestion.”

Another factor influencing D&D costs is free time allocation, which also varies across the major hub ports. In Long Beach, for example, a TEU can only be used for four days at no cost, while in Busan the average is 10 free days.

Contact Greg Knowler at [email protected] and follow him on Twitter: @greg_knowler.

 

usscmc

usscmc

No Result
View All Result

Recent Posts

  • How Hapag Lloyd captured a major market share in the Container Shipping Industry in USA
  • Why USA’s East Coast is the Favorite Destination for Manufacturing Companies
  • How Trade Relations Between the USA and UK Improved After Keir Starmer Became Prime Minister
  • Tips and Tricks for Procurement Managers to Handle Their Supplier Woes
  • The Crazy Supply Chain of Walmart Spanning Across the Globe

Recent Comments

  • Top 5 Supply Chain Certifications that are in high demand | Top 5 Certifications on Top 5 Globally Recognized Supply Chain Certifications
  • 3 Best Procurement Certifications that are most valuable | Procurement Newz on Top 5 Globally Recognized Supply Chain Certifications

Archives

  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • September 2019

Categories

  • Global News
  • Supply Chain Updates

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
  • Antispam
  • Contact Us
  • Disclaimer
  • Home
  • Privacy Policy
  • Terms of Use

© 2025 www.usscmc.com

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us

© 2025 www.usscmc.com