• Skip to primary navigation
  • Skip to main content
FbaZoom

FbaZoom

Logistics, Warehousing, FBA Prep Support for Amazon FBA sellers, and MultiChannel Pick and Pack Support

  • Home
  • FBA Prep
    • FBA Prep Guide
    • 3PL Product Inspection Services
  • Pick & Pack
    • Ecommerce Product Fulfillment – Getting Your Order to the End Customer
    • Retail Arbitrage Prep (RA) Guide for FBA
  • Storage & Warehousing
    • Warehousing Your Ecommerce Products – Best Practices
    • FBA Storage – A Guide on Storing FBA Products
  • Logistics
    • International Logistics – A Complete Guide
  • Pricing
  • Contact Us
  • More
    • The Lifecycle of a Product – From Sourcing to Your End Customer
      • Building Your Brand – Choosing the Right Ecommerce Products to Maximize Amazon Sales
        • Product Research – Finding an Amazon Best Seller for your Brand
        • Product Sourcing – Finding the Right Supplier
        • Value Negotiating – How to get the Best Price from Your Supplier for Your Ecommerce Product
        • Next Steps After Your Ecommerce Product has been Sourced
      • International Logistics – A Complete Guide
        • International Shipping – Finding the Best Value in Balancing Cost, Timeline, and Reliability
        • Customs Clearance for Ecommerce Products – Navigating Customs and Border Protection (CBP) Requirements
        • USA Port Pick Up – The Process of Getting Your Ecommerce Goods Off of the Vessel
        • Domestic (USA) Trucking – Getting Your Ecommerce Products from Port to Warehouse
      • Warehousing Your Ecommerce Products – Best Practices
        • Amazon Partnered Carriers – How to get Your Ecommerce Products to Amazon FBA
        • Ecommerce Product Fulfillment – Getting Your Order to the End Customer
        • FBA Storage – A Guide on Storing FBA Products
    • FbaZoom Knowledge
      • FbaZoom – 101
    • 3PL Product Inspection Services
      • FBA Prep Guide
        • Private Label Prep for FBA Products
        • FBA Prep For Beginners
        • Marketing Inserts for Beginners
        • FNSKU Label Guide
        • Sold As Set Label Guide
        • Amazon Expiration Date Guide
        • Amazon Product Bundle Guide
        • Polybag Guide for FBA
        • Bubble Wrap Guide For FBA
      • Product Inspection Guide for FBA Sellers
        • Product Repackaging for Amazon Sellers
        • Product Inspection In China
    • Retail Arbitrage Prep (RA) Guide for FBA
    • Freight Forwarder Storage – A Complete Guide
      • E-Commerce Storage – The Complete Guide
      • FBA Storage – A Guide on Storing FBA Products
    • International Logistics – A Complete Guide
      • The Lifecycle of a Product – From Sourcing to Your End Customer
        • Building Your Brand – Choosing the Right Ecommerce Products to Maximize Amazon Sales
          • Product Research – Finding an Amazon Best Seller for your Brand
          • Product Sourcing – Finding the Right Supplier
          • Value Negotiating – How to get the Best Price from Your Supplier for Your Ecommerce Product
          • Next Steps After Your Ecommerce Product has been Sourced
      • China to USA Shipping
        • International Shipping – Finding the Best Value in Balancing Cost, Timeline, and Reliability
          • Foreign Trade Zone
          • Container Stuffing
          • Container Freight Station – A Guide
          • Container Lashing
          • Demurrage
        • Customs Clearance for Ecommerce Products – Navigating Customs and Border Protection (CBP) Requirements
          • How to Get an EIN Outside the U.S.
        • USA Port Pick Up – The Process of Getting Your Ecommerce Goods Off of the Vessel
          • Bonded Warehouse
            • Types of Bonded Warehouse
            • Last Free Day
          • Domestic (USA) Trucking – Getting Your Ecommerce Products from Port to Warehouse
        • Warehousing Your Ecommerce Products – Best Practices
          • Amazon Partnered Carriers – How to get Your Ecommerce Products to Amazon FBA
          • Ecommerce Product Fulfillment – Getting Your Order to the End Customer
          • FBA Storage – A Guide on Storing FBA Products
  • Show Search
Hide Search

Detention Fees

What are Detention Fees?

Detention fees are what a cargo consignee pays for the use of a container outside of the terminal or depot, beyond the free time period offered by a carrier.

Difference Between Detention Fees Demurrage?

Detention Fees Explained

These are charged for the time a container spends occupied outside of the port, whilst awaiting an unload and return to its carrier. For example, an empty container can incur detention charges, if it languishes at its final delivery destination, beyond the allotted free time provided by the carrier.

Demurrage Explained

Demurrage refers to the charge that the cargo consignee pays for the use of the container within the terminal beyond the free time period, set by the carrier.

Per Diem vs Driver Detention – Two Types of Detention Fees

Carriers need to keep equipment in circulation. When a consignee uses a container for longer than the agreed upon time – it is no longer making money off of new clients. It’s in limbo. Therefore, the carrier charges for the downtime of the container. These charges offset that lost time. The industry defines Detention Fees in two ways – Per Diem vs Driver Detention Fee.

Per Diem Fee – Applies to Containers Outside The Port

Detention Fees Per Diem (Per Day), refer to a fixed rate charged per container per day by the carrier. They occur when a consignee keeps a container away from its specified port, terminal or depot for longer than the free time allotted. Detention stops after equipment returns to the correct port or terminal. Like demurrage you are allotted a set amount of free time to return equipment that is removed from port. Keeping equipment (e.i. containers) beyond that free time results in a detention charge or per diem fee. These Detention Fees range between $50 to $100 per day.

Driver Detention Fee – Applies to Container Unloads

There is a small window of free time for physical loading or unloading a container. If a facility exceeds this window of free time, a carrier can charge a driver a detention fee at an hourly rate. A carrier charges a Driver Detention Fees if the driver waits in excess of agreed upon time. See the examples of where exceed time occurs, below:

  • Port of Origin
  • Port of Pick Up
  • Warehouse Pick Up
  • Destination Delivery

This charge compensates the carrier for time delays. Otherwise, they lose money on delayed returns of their equipment.

Why are Driver Detention Fees Charged?

Drivers receive a legal limit on the hours driven in a week. Consequently, if a driver exhausts that time idly waiting – they cannot move goods at a profitable rate. In addition, missing appointments or showing up late can result in drivers receiving fines. Additionally, drivers can work up to 14 hours (11 driving hours) straight. Once they are off the clock for the day, they are Drivers must wait 10 hours before working again, after their shift finishes. Overall, that means that drivers who are paid by mileage Driver lose money, who receive payment based on paid mileage. After all, they wait an excess amount of the allotted time for the unload or load. Thus, they need compensation. Otherwise, drivers can’t turn a profit – since they do not have the miles.

Who Enforces Detention Fees?

Typically, the carrier that owns the rented container charges Detention Fees. These fees occur at destination, rather than the port of entry. The carrier charges the drayage provider (3PL trucker), who charges the consignee.

Written by:
Edward Nickerson
Published on:
March 9, 2022

Categories: Uncategorized

Fba Zoom - Amazon FBA Sellers Logistics Warehousing Support - Ecommerce specialists in 3PL Logistics and Fulfillment Services

Footer

FbaZoom

(833)939.3227
819 Anita Street
Chula Vista, CA 91911
USA

Copyright © 2023 · Atlas Daedalus LLC · San Diego, California · [email protected] · 833.939.3227

Keep In Touch

  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter

Terms and Conditions

Privacy Policy

  • Home
  • FBA Prep
  • Pick & Pack
  • Storage & Warehousing
  • Logistics
  • Pricing
  • Contact Us
  • More