WHAT IS DEM, DET, AND STORAGE CHARGE?

What is DEM and DET?

1. What is DEM?

DEM (demurrage charge) is the container storage fee at the port yard collected by the shipping line. The essence of DEM is that the port will proceed to collect the shipping line's fees. After that, the shipping line will collect it from the customer and close it back to the port by separate agreement. Each shipping line will have policies about free time (or day) when storing containers at the yard for customers. When this free period is over, the shipping line will start charging customers.

           For imports:
• DEM free time is about 1-7 days for dry container, 1-3 days for reefer container. You will be completely DEM free during this period.
• DEM fees are charged from the overdue date to the date you pick up the goods.
• DEM fee is calculated in units of money/day/container (depending on the type and size of the container)

           For exports:
• DEM free time is about 1-7 days for dry container, 1-3 days for reefer container. You will be completely DEM free during this period.
• For exports, DEM fees are rarely paid. Just in case you get dropped due to late customs clearance and have to take a later trip or due to some other reason.

2. What is DET?

DET (detention charge) is the container storage fee at the warehouse paid to the shipping line. Similar to DEM fees, DET fees also have a policy of free container storage for periods of time (or days). DET fees are charged on a daily basis and depending on the type and size of the container.

         For imports:

DET fee is charged from the late empty return date compared to the free period.
         For exports:

DET fee is calculated from the date the shipping line allows you to pick up the container compared to the day you pick up the container. In case if you get it earlier then you will have to pay the fee. If you take it later, you will not be charged this DET fee.

What is STORAGE CHARGES?

Storage Charge is the container storage fee at the port that the customer pays directly to the port (not through the shipping line). This type of fee is separated from DEM fees, so it is easy to cause confusion and controversy. You can simply understand that in case the port is storing your cargo, the DEM free period has expired. Now you have to pay the container storage fee directly to the port, this fee is called storage charge.