x Is your business interested in the concept of what is DEM, what is DET, what is Storage fee?
x Do you want to clarify the differences between Storage fees & DEM and DET fees?
x You don't know why businesses have to pay Storage, DEM & DET fees?
Knowledge related to the concept of what Storage fees are, what is DEM, what is DET, the different characteristics between fees as well as the causes of fees arising in the process of import-export of goods at seaports will be discussed. Proship clearly points out through the article shared below. After researching and reading each of the following contents, we are confident that your business will know how to effectively prevent it to contribute to minimizing costs and budgets throughout the process of delivering orders and packages.
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What is the Storage fee?
What is Storage Fee ? This is the fee for storing Containers in the port, often used with the word storage fee. This storage fee is understood to mean that Containers located in the port will take up a space of the port so this fee will be lost. It is often confused with the DEM fee. This default fee starts after 3 or 5 days and is usually very low. This fee usually does not have a price range, it is calculated by day and a unit price.
For example: 2USD/days, Container stays in port for 10 days, 3 days are exempted. So the total fee is: 7*2=14 USD.
Many times shipping companies will collect 2 invoices and both write it as storage fee but the invoice price is different so confusion occurs. Many people even think they have already paid the DEM fee, but in fact it is just a Storage fee. Therefore, when getting D/O, you need to check how many days the DEM is old to avoid unnecessary mistakes.
In the case of exported goods, if they arrive at the yard too early compared to Booking, this fee may be charged. In many cases, there is a shipping company that collects or a port that collects, this must depend on the agreement between the port and the shipping company. As for the collection port, it usually charges the same fee as the overdue fee at the cargo inspection yard. This is also a storage fee, but the storage fee in a Container yard with a special service (cargo inspection) will be collected by the port.
In some cases (not most) additional Storage Charge fees may arise, the port will collect them directly from the shipper (unlike DEM & DET - customers pay for shipping lines), Storage Charge fees are closely related. to DEM fee.
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Learn the differences between Storage fees & DEM and DET fees
Between Storage fee & DEM, DET fee, the differences are shown as follows:
Storage Fee
This fee is often confused with the DEM fee, which is separated from the DEM fee. This fee is also a storage fee but is paid by the shipper to the port, not the shipping company.
For example: If your package is imported to Cat Lai Port. The shipping company gives you a free 5-day DEM. After that, for some reason it has been more than 5 days and the goods cannot be received in time, the goods are stored at the shipping company's yard and DEM fees must be paid for the following days. Next, if you pull the goods back to the warehouse for processing, the process of processing the goods takes more time than the prescribed time to return the Container to the shipping company. At that time, you have to pay the DET fee and Storage fee to the port.
DEM Fee
What is DEM? DEM fee is the fee for storing Containers at the yard that shipping lines charge customers. Its nature is that the port will collect from the shipping line, then the shipping line will collect from the customer and return it to the port according to a separate agreement, calculated per Container unit.
- For imported goods: After the goods are cleared for import, they will be unloaded by the shipping company and stored at their container yard. At this time, the shipping company sends a D/O - notification of goods to the recipient, which can be the goods owner or the Forwarder. Within a certain period of time, usually 1-7 days for dry containers and 1-3 days for refrigerated containers, there is no storage fee, but if this time exceeds, the shipper will have to pay a DEM fee to the shipping company. This fee is calculated in units of Money/day/container.
- For export goods: After receiving Booking Confirmation from the shipping line. Customers base on the delivery time to pull goods to the port. This time is usually 1-7 days in advance for dry containers and 1-3 days for refrigerated containers. If you pull the goods to the port before this time, you must pay the DEM fee to the shipping company. Normally, shippers will limit this fee when exporting because the goods are delivered within the specified time.
DET Fee
What is DET? DET fee is the fee for storing Containers at the warehouse, paid to shipping lines and calculated by day & depending on the size and type of Container in sea freight transport.
- For imported goods: If you return the empty container later than Closing time. This container will be stored in your warehouse and the shipping company will start charging DET fees
- For exported goods: This fee is charged when you pick up the Container earlier than the allowed pick-up date.
Reasons why businesses have to pay DEM/DET/STORAGE fees
The reasons why businesses have to pay DEM/DET/Storage fees are pointed out as follows:
Customs declaration and shipping delays
Many units do not anticipate what must be done, so they are quite subjective or do not have much experience, so they carry out all procedures quite slowly, delaying time and incurring many unnecessary fees.
Delay in documents
Documents are essential for customs clearance, but delays prolong the time and incur unexpected costs
Voucher error
One of the documents submitted to Customs had errors in information about ships, addresses, etc., which Customs requested to amend. This takes time and the goods are stored in the yard until the correct information can be corrected
Lost documents
This problem often occurs, possibly due to lost documents during transportation or poor record management, especially if the bill of lading is lost, it will take a long time to get it back.
What is the knowledge related to And the differences between types of fees and the causes of fees that Proship has just shared. Any business that wants to learn about some unexpected surcharges that arise can refer to them and effectively prevent them. Minimize costs for your import-export business unit...And when you want to find cheap, professional shipping, loading, unloading, and import-export services by sea, contact hotline 0909 344 247 for support. support, quote.
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