Demurrage and detention costs eating up your profits? Need to manage these overhead charges and reduce demurrage? MyFinance is here for you.
A web-based finance management tool, MyFinance simplifies the process of tracking, calculating, and managing demurrage and detention charges.
Up ahead, we discuss what is demurrage and how these charges are calculated for imports and exports. We'll also explore how MyFinance helps manage them more effectively.
Demurrage and detention charges: Know the difference
Demurrage and detention may mean the same for a common person, mainly because they’re used as pairs. But, they have distinct meanings in the shipping industry and cannot be used interchangeably. To define briefly,
- Demurrage: Charges applied to the cargo while it remains on a terminal after the allocated freetime is over.
- Detention: Charges applied to the container if not returned within the stipulated free days, regardless of whether it’s loaded or empty.
Tips to reduce detention and demurrage charges
Overhead charges, like D&D, can add significant costs to your logistics operations. Avoiding demurrage and detention costs isn't possible in many situations, like labor shortages and natural disasters.
But, efficiently managing container usage and avoiding unnecessary delays can help reduce demurrage charges and keep your logistics expenses in check. Here are some tips:
- Plan your shipments to ensure the necessary arrangements are in place, such as scheduling pick-up, delivery, and warehousing space.
- Familiarize yourself with policies and carrier terms. Understand the allocated freetime for container pick-up, packaging, return, and other overhead costs.
- If you predict any issues preventing your carrier from picking up the container on time, request extended freetime from the shipping line or logistics service provider.
- Optimize container loading and unloading to avoid delays in unpacking or returning empty containers to the port by optimizing your cargo handling processes.
- Ensure all necessary documentation and procedures are completed promptly to prevent any delays in customs clearance.
- Utilize tracking systems and technologies to monitor the movement of containers and proactively address any potential delays.
But, sometimes, it’s not possible to avoid paying demurrage fees. Here’s how MyFinance can help you calculate and pay these charges quickly and easily.
How to use MyFinance for calculating demurrage and detention charges?
Maersk’s MyFinance offers a new D&D tool that allows you to enter your bill of lading number and view demurrage and detention details for each individual container. You can also make demurrage payments or secure extra free days using a credit card on the portal itself.
Here are the step-by-step instructions on how to calculate demurrage and detention charges using MyFinance:
- Step 1: Open the Maersk website.
- Step 2: Go to the Accounts button in the top right-hand corner.
- Step 3: Log in using your username and password.
- Step 4: Navigate to the Hub and find the Import Demurrage & Detention card on the page.
- Step 5: Enter your bill of lading number.
- Step 6: Click on the View Details button.
- The tool will generate a breakdown of your booking on a container level, showing each container on the booking, the number of free days each container receives, and each container's last free day.
- It will also show the same information for detention, indicating how many free days of detention the containers are receiving and their last free day for detention.
- Step 7: If you need to extend your free days, you can purchase them on the portal itself and pay directly using a credit card.
- After the payment, the last free day will be updated at the terminal where your booking is located, and you will see the update within an hour.
Gone are the days when you had to get on multiple phone calls to manage your detention and demurrage payments. With MyFinance, you can view and pay your demurrage online in just a few simple and easy steps.
Anything you need, we’re here to help
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