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Showing posts from September 17, 2016

Container Service Types

On several bills of lading, you might have noticed the terms FCL/FCL, LCL/FCL etc. What do they mean? Full Container Load – this is when the full container is used by a single customer for his cargo. FCL containers are usually packed and unpacked by the client at his premises at the origin and destination. The client takes responsibility, liability for the packing and condition of the cargo packed in the FCL container. Less than Container Load – this is when the same container is used for cargoes belonging to multiple shippers and consignees. The clients deliver their cargo to the lines packing station (CFS – Container Freight Station) and the line then packs the delivered cargo on behalf of the client. In the case of LCL containers, the shipping line takes responsibility and liability for the packing, condition and delivering of the cargo. But the shipping lines do not offer LCL services in all countries. For example in South Africa – there is no concept of

Demurrage and Detention

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  Demurrage and detention are two words that often confuses people. Is there a difference? In the context of containerized cargo, in generic terms, Demurrage relates to cargo (while the cargo is in the container) Detention relates to equipment (while the container is empty after unpacking or before packing)       Let’s see how it works: Imports – A container is discharged off a ship on the 2nd July – Consignee approaches the shipping line to take delivery of the cargo around 12th July. Working off a standard 7 free days from date of discharge, the line free days (different to port free days) expires on the 8th July. So, the line will charge the consignee DEMURRAGE for 4 days from 9th to 12th July at the rate fixed by the line.   After the full container has been picked up by the client, for example if they take another 7 days to return the empty container, then it is known as DETENTION which again will be charged at the rate fixed