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Detention, Demurrage, Per Diem and Storage Accessorials Defined in 100 Words Blog Feature
Rick LaGore

By: Rick LaGore on June 7th, 2019

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Detention, Demurrage, Per Diem and Storage Accessorials Defined in 100 Words

Accessorials | Detention | Demurrage | Storage | Per Diem

 

Definition of Detention, Demurrage, Per Diem and Storage

  • Accessorial Fees

    Detention

    • A charge made at the time of loading or unloading a trailer/container because the driver is being held beyond their allotted free time.

    • Typically, there are 2 hours free time before detention charges begin.

    • Detention is billed on an hourly basis and is a negotiable charge at time of contract, but not at time of invoicing.

  • Demurrage

    • Demurrage is a charge assessed when cargo is left at the terminal beyond the allotted free time.  

    • Congestion at pick-up or delivery or the location being closed is not a free pass.   The clock will continue ticking, so it is imperative to address demurrage quickly.

    • Demurrage is billed at a daily rate and escalates as the days increase.  

    • Demurrage charges need to be paid before a container can be pulled from the yard.

  • Per Diemfreight containers

    • A per diem charge is a fixed rate per day that a carrier charges against another carrier or customer for use of its containers, trailers or chassis.  
    • Per diem charges accumulate until the equipment is returned to the port or rail terminal.
  • Storage

    • Storage charges are assigned to the shipper or consignee for holding containers or trailers at a terminal beyond the free time allotted to them.

If you want to know more about these charge we invite you to read "Demurrage, Detention, Per Diem & Storage - Definitions & How to Avoid". 

FMCSA has a listing of various freight terms, check out our glossary of terms or download the following eBook of terms.

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About Rick LaGore

Rick is the co-founder and CEO of InTek Freight & Logistics, a company focused on being the place where companies come when faced with a logistics problem.

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