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WHAT ARE DEM, DET AND STORAGE CHARGE? HOW TO DISTINGUISH THESE TYPES OF FEES?

DEM, DET, STORAGE CHARGE are terms commonly used in the field of import and export and are also often used in freight transportation. However, not everyone can clearly understand and distinguish them. Therefore, in this article, Green Ocean wants to provide you with the necessary information to help you have a clearer overview of these 3 types of fees.
DEM – Demurrage: This is the cost of storing the entire container (with goods) at the port yard.

Collected by shipping lines.

Cases that arise:

+ For imported goods: DEM exemption period depends on each ship, calculated from the date the ship arrives at the port. After this period, DEM fees will begin to be charged.

+ Export goods: The shipping company will give you time to bring the packed container to the storage port. The detention exemption period is calculated from the date the container is unloaded at the yard. If after this time the container is still not exported, you must pay an additional DEM fee (this usually happens when the ship misses a trip and has to make another trip).

DET – Detention: Cost of storing containers at the customer's private warehouse

Collected by shipping lines.

Cases that arise:

+ Imported goods: DET exemption period depends on each ship, calculated from the date the container leaves the port. Shipping lines will take time to collect goods from the port to the warehouse and then return empty containers to the port. If this period is exceeded, additional DET fees must be paid. In case you unload the goods from the container at the port yard, this fee will not be charged (often called "dumping").

+ Exported goods: Calculated from the date the shipping company authorizes to pick up the container corresponding to the date you pick up the container. If you pick up the container early, you will have to pay a fee. If you pick up the container later, you will not be charged this fee.

Storage fee: Container storage fee at port yard (Storage fee)

Due to port collection,

Case arises:

+ Imported goods: subject to DEM fee. After DEM fees are incurred, storage fees will also be incurred. The first 5 days are usually exempted, the first day is the day the ship arrives at port, from the 6th day a fee will be charged.

+ Outbound shipping: Occurs in cases where the container has been transported for a predetermined trip but for some reason cannot go and must be transferred to another trip.

Some note:

There are 2 types of time regulations DEM - DET:

+ Separate DEM time and DET time

+ Combined. For example: 14 days combined

Depending on each shipping company, DEM and DET fees will be different.

Free time for DEM, DET, STORAGE CHARGE includes holidays, Saturdays and Sundays. Only in special cases is there flexibility for customers.

In some cases, you can apply for an additional free term for DEM and DET such as: the shipping company has a free policy, the monthly volume of customers is high, the relationship with the shipping company, ...

Regardless of the conditions in the incoterm when importing/exporting goods, it is necessary to clearly understand the free time of DEM and DET, STORAGE CHARGE at the loading and unloading port to avoid incurring unfortunate fees.

Epilogue

Above is the content about DEM, DET, STORAGE CHARGE fees. Hopefully the knowledge we share above will help you.

If you have any questions about import-export operations or need further advice, please leave a comment below or contact us via information channels, we will be happy to answer.

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