What are DEM and DET fees? What are the different characteristics between DEM and DET?

x Your business doing export or import goods by sea needs to know what the DEM and DET fees are?
x You are new to the shipping industry, need to find out what is the difference between DEM and DET?
x Do you want to know how to calculate and how to avoid incurring DEM and DET fees?

The similarities or differences between DEM and DET surcharges in international sea transport will be PROSHIP.VN below. Along with that is a clearer answer about what DEM fees are, what DET is and some other related notes. From here, import-export businesses can estimate in advance any fees that may arise during the shipping process.

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What are DEM and DET fees?

What is DEM?

What is DEM ? DEM stands for Demurrage charge, which is the fee for storing containers at the yard collected by shipping lines from customers and then paid to the port according to a separate agreement. DEM fees are calculated in currency units/day/container.

Each shipping company will have a free policy when storing containers at the yard for customers for a specified period of time. After this deadline, the shipping company will start charging until the date of pickup. Normally, DEM fees are free for 1-7 days for dry containers and 1-3 days for reefer containers.

DEM fee for imported goods: The time to calculate the DEM fee for imported goods is calculated from the day the ship arrives at the port until the customer takes the container out of the port.
DEM fee for exported goods: The time to calculate the DEM fee for exported goods is calculated from the time the container is brought into the port until the cut off time of the shipment.

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What are DEM and DET fees? What are the different characteristics between DEM and DET? — DEM and DET are common surcharges in shipping, DEM is "Demurrage charge" - fee for storing containers at the yard; DET is "Detention charge", which is the fee for storing containers in the port's warehouse.

What is DET?

What is DET ? DET stands for Detention charge, which is a fee for storing containers in the port's warehouse, paid directly to the shipping line. DET fees also have a free storage policy, calculated by day and depending on the type and size of the container.

DET fee for imported goods: DET fee is calculated from the date the empty container is returned late compared to the free time.
DET fee for exported goods: DET fee is calculated from the date of picking up the empty container earlier than the time the shipping line allows to pick up. If you pick up later, you will not be charged DET fee.

Differences and how to avoid DEM and DET fees

Let's join Proship to learn the similarities, differences and how to avoid DEM and DET fees:

Difference between DEM and DET fees

What are the similarities and differences between DEM and DET? Details shown:

ALIKE
Both fall under the cost of delay; Both are included in sea transport; Both only apply to FCL shipping services.
DIFFERENT DEM and DET difference at container location and responsible parties.
DEM	DET
Demurrage refers to the time a container stays in a terminal. Demurrage is greatly affected by customs clearance speed. The importer and Customs agent will be responsible for the demurrage fees.	DET charges will apply when extending the container's time outside the port of discharge. Detention may occur when the container cannot be returned in a timely manner.

How to avoid DEM and DET fees

To avoid DEM and DET fees, businesses can:

Warehouse arrangement: Ensure a warehouse that is large enough and has enough capacity to return containers to the port promptly after the goods are unloaded;
Change transshipment port: If there is congestion or problems at the origin port, consider changing the transshipment port or discharge port;
Plan right: Plan and book containers in advance. At the same time, choose a reputable shipping company for a convenient transportation route;
Negotiate additional time: In some cases, shipping lines can negotiate additional unloading time without charging DEM/DET fees;
Container tracking: Closely monitor containers for timely customs clearance and receive containers from the terminal as soon as they arrive.

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How to calculate DEM and DET fees accurately?

How to calculate DEM fees

DEM (Demurrage) fee = Demurrage time = Demurrage fee = Demurrage charge = Storage fee = Storage time

This fee is calculated by day, including Saturdays, Sundays and holidays. This is the period of time that shipping lines will allow shippers to leave containers at the yard/port.

With imported goods:

For dry containers, DEM free time is about 1-7 days, for refrigerated containers, free test is in 1-3 days;
DEM fee is calculated from the overdue date to the date you pick up the goods;
DEM fees are calculated in units of money/day/container (depending on the type and size of the container).

For exports:

DEM free time for exported goods is usually 1-7 days for dry containers and 1-3 days for reefer containers. Normally, export goods rarely have to pay DEM fee. Only when special situations occur such as loss of goods due to customs clearance delays or other reasons, the sender must pay the DEM fee.

How to calculate DET fee

Detention fee = Detention time = Detention fee = Detention charge = DET = Container storage fee = Storage time

Daily fees are calculated by day, including Saturdays, Sundays and holidays. This is the period of time that shipping lines allow shippers to keep containers at their warehouses.

With imported goods:

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The DET fee will start from the date of emptying which is later than the free period.

For exports:

DET fee is calculated from the date the shipping company allows to pick up the container compared to the date the shipper comes to pick up the container. If you get it earlier, you will have to pay a fee. If you get it later, you will not be charged this DET fee.

Things to know about DEM and DET fees

Here are things to know about DEM and DET fees:

DEM, DET, STORAGE fees are calculated based on the number of days delayed, size and type of container. Refrigerated container packing fees are often much higher than other types of containers;
If the goods are packed at the yard, there will be no DET fee;
DEM and DET fees are different for different shipping lines;

DEM, DET free time is calculated for holidays, Saturdays and Sundays. However, there are still special cases that are applied flexibly to customers;
When booking goods, always make clear the DEM and DET free time at the loading and unloading port;
DEM and DET free periods can be extended when: the shipping line uses the free policy, the customer's level of importance such as cargo volume, relationship with the shipping line,...

What is DEM and what is DET as well as the difference between DEM and DET have been answered. Both of these fees must be paid to the shipping company and they appear both at the loading port and the unloading port... For any related questions, please contact 0909 344 247 for Proship Logistics to answer and advise on Services. Multi-modal transportation package at the best price.

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