x Does your business not understand the concept of DEM surcharge or DET?
x Do you need to distinguish the difference between DEM & DET fees in international shipping?
x Do you want to know what causes DET & DEM fees?
The differences between DEM and DET surcharges in international sea freight will be Proship.vn , along with the concept of what DEM is, what is DET, to help businesses operating in the field. In the import-export sector, Logistics has the most comprehensive overview of some special fees that may arise. When you clearly understand the definitions and knowledge related to DET & DEM, the process of transferring goods from one seaport to another will take place more quickly and effectively.
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What are DEM and DET fees?
What is DEM ? DEM (Demurrage Charge) is understood as the fee for storing Containers at the port yard collected by shipping lines. The nature of DEM is that the port will collect fees from shipping lines and shipping lines will collect them from customers, then pay them back to the port according to a separate agreement. DEM fees are calculated per Container unit. Each shipping company will have policies on free time (or days) when storing containers at the yard for customers. Once this free period has passed, the shipping company will start charging customers.
What is DET ? DET (Detention Charge) is understood as the fee for storing Containers at the warehouse paid directly to the shipping company. Similar to DEM fees, DET fees also have a policy of free storage of Containers for a period of time (or days) calculated in days and depending on the type and size of the Container.
Notes on DEM and DET
- When packing goods at the port or yard, there will be no DET fee
- DEM & DET fees are calculated based on the number of days delayed, type and size of Container. Normally, reefer containers often have much higher fees than other types of containers
- DEM & DET fees have different fees depending on each different shipping company
- DEM & DET free time applies to all holidays, Saturdays and Sundays (only in special cases will there be flexibility for customers)
- When booking goods, no matter what conditions in Incoterm you make the contract under, it is necessary to clarify the DEM & DET free time at the loading and unloading port.
- You can apply for an additional DEM & DET free term if the shipping company applies: Free policy, customer power such as monthly volume, relationships with shipping lines,...
Learn the difference between DEM and DET fees
DEM and DET fees differ through the following specific characteristics:
DEM, DET and STORAGE fees for exported goods
After you contact the port to receive the container and drag it to a separate warehouse for packing. Normally, for exported goods, you will be able to take the Container back to the warehouse for packing 5 days before the ETD departure date. This means that you will get 5 days of DEM and 5 days of DET for free on the condition that you must return the Container to the yard before the Closing time (the deadline that the shipper must liquidate the Container to the port to load and unload the Container onto the ship). to export according to the expected train schedule.
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If after 5 days, you do not return the Container to the departure yard according to the pre-booked shipping schedule and the Container is left at the warehouse, you must pay for storing the Container at the warehouse (DET). If for some reason, you have to deliver the Container to the yard but after the specified Closing time and the goods cannot be loaded onto the scheduled ship. Your goods will have to stay at the yard and wait for the next trip. You will have to pay container storage fees at the yard (DEM) and storage fees at the port (STORAGE). In case you pack the goods at the port yard, DET will not be calculated and DEM will be calculated as above.
DEM, DET and STORAGE fees for imported goods
After you have completed customs and import procedures and want to transport the Container of goods to a separate warehouse to withdraw goods, this Container will be free of charge for storage at the port (DEM) and storage fee at the port (STORAGE). Normally, shipping lines allow 5 days (from the date the ship arrives at port).
This means, you will get 5 days of DEM and 5 days of STORAGE for free. From the 6th day onwards, you will have to pay additional DEM and STORAGE fees (if the goods are still in the port yard) or you will have to pay DEM & DET fees if you bring the goods to a separate warehouse to unload after the specified date. determined. In case you withdraw goods at the Port's yard after the 05 days of exemption mentioned above, you will have to pay Container storage (DEM) and storage (STORAGE) fees.
Reasons why businesses pay DEM & DET fees
The reasons why businesses have to pay DEM & DET fees are:
- Loss of documents: This case is very common. Documents can be lost during transportation or records are not strictly managed. Especially if the bill of lading is lost, it will take a long time to get it back.
- Delay in documents: Documents are essential for customs clearance, but delays prolong time and incur costs.
- Document error: One of the documents submitted to Customs had information errors such as ship, address, etc. and was required by Customs to amend, wasting time and the goods had to be stored at the yard until corrected. Correct information
- Customs declaration and goods processing delays: Many units cannot predict what must be done, so they are quite subjective, so when doing it, there is a delay or they do not have much experience, so the implementation is quite delayed in terms of time and Many unnecessary fees arise.
What are DEM and DET fees? The different characteristics between DEM and DET have been specifically explained, accordingly they appear both at the loading port and the unloading port & both of these fees must be paid directly to the shipping company... Hopefully, this article The above article will bring you a lot of useful information about the import-export industry. And when your business needs to hire our Proship shipping service, please contact hotline 0909 344 247 to receive the fastest, most detailed quote.
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