What are DEM and DET? How to distinguish between DEM, DET and Storage charges

In freight, DEM and DET are the two very common local charges. However, for those new to import and export, the distinction between DEM and DET will often be difficult. In this article, LEC Group experts will provide information to help you have a more comprehensive view of this issue.

What are DEM and DET?

1. What is DEM?

DEM (demurrage charge) is a container storage charge at a port collected by a shipping company. The essence of DEM is that the port will charge shipping lines. After that, the shipping company will collect from customers and close to the port according to a separate agreement. DEM fee is charged per container unit.

DEM và DET là gì?

At each shipping line, there will be free time (or day) policies when storing containers at the yard for customers. Beyond this free period, the shipping line will start charging the customer.

For imported goods:

DEM free time is about 1-7 days for dry containers, 1-3 days for reefer containers. You will be completely free DEM during this period.
DEM fee is calculated from the due date to the date you pick up your goods.
DEM fee is calculated in money/day/container (depending on the type and size of container).

For export goods:

DEM free time is about 1-7 days for dry containers, 1-3 days for reefer containers. You will be completely free DEM during this period.
For export goods, it is very rare to pay the DEM fee. Just in case you dropped the goods due to late customs clearance and have to take the next trip or some other reason.

2. What is DET?

DET (detention charge) is the charge to store containers at a warehouse built for shipping lines. Similar to DEM fees, DET fees also have a policy of free container storage for a period of time (or days). DET fee is calculated by day and depends on the type and size of the container.

DEM và DET là gì?

For imported goods: the DET fee is calculated from the date of empty delay compared with the free time.

For shipment: DET charges are calculated from the date the shipping company allows you to pick up the container compared to the date you pick up the container. In case if you get it earlier you will have to pay. If you take it later, you will not be charged this DET.

What is the storage fee?

Storage Charge is the charge to store containers at the port that customers close directly to the port (not through shipping lines). This is a separate charge from the DEM fee, so it is easy to cause confusion and controversy. You can simply understand that in case the port is storing your goods, the free DEM time has run out. Now you have to pay container storage charges directly to the port, this charge is called storage charge.

Key points about DEM and DET

When packing at the yard will not be charged DET.
DEM and DET charges, Storage charge is calculated based on the number of days delayed, the type and size of the container. Normally, reefer containers usually have this fee much higher than other types of containers.

DEM và DET là gì?

DEM and DET free time will be calculated for holidays, Saturdays and Sundays. Only in special cases does the customer have flexibility.
DEM and DET fees have different rates depending on the different shipping lines.
DEM and DET can be extended for free in the following cases: shipping lines have applied free and powerful policies of customers such as monthly volume, relationship with shipping lines, etc.
When booking an order, please note that regardless of the terms under the incoterm. The DEM and DET free time at the port of loading and unloading must always be clarified.

Hopefully, with the above information, you will have a more comprehensive view of DEM and DET. Please contact LEC Group today if you need assistance!

LEC GROUP

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