DescripciónBenefit Of The Detention Estimator:
Did you know that commercial carriers make more in detention cost earnings, than they do shipping your cargo, or the cost you pay for the use of their container in which your cargo is stored?
This tool will help your organization save thousands or even millions (or in some shipper's cases, *billions*) of dollars in detention costs!
When used to help establish priority among groups of containers you shipped and have arrived, the Detention Estimator can help you shorten the time in detention - thus saving you money - or in the cases of those companies that work with JIT (just-in-time) ordering and fulfillment, it can help you estimate whether it is more cost-effective to empty that cargo and move it to your destination site, warehouse, or other location - or leave it in detention!
What is Container Detention?
Understanding the process of delivering your organization's cargo is sometimes difficult. We want you, our customer, to be aware that you risk additional charges if you retain shipping containers beyond the standard allowed period. These charges are known as "container detention".
Container detention charges are imposed by carriers for containers kept beyond the assigned "free time" and not returned to the designated location within that period, or reported back to the carrier as "available for reclaimation or reuse". "Free times" vary from one carrier to the next, but generally range from seven to ten calendar days, depending on the size and type of container used. Take note, however, that it can be less per day, or more.
The "free time" begins from the first day the container is made available on the wharf. A container may be made available on the wharf, however customers may still need to comply with various customs or border processing requirements. Anytime a container is held up in a a customs or border process, this is considered to fall in the "free time" period.
In some special circumstances, you as the shipper can request extra free time for the return of the container, however, the carrier is under no obligation to grant it.
So What? What is the big deal?
So what? The big deal is - container detention costs you MONEY! Take the below scenario for example:
Suppose you had 1000 containers that you shipped... and they arrived at their destination 5/28/2012. You did not empty and report the containers back to the carrier until 6/28/2012, and have 7 free days.
What if, for a 40-ft Dry Container... the container carrier company charged these rates:
$17.00 for the first 7 days;
$27.00 for the next 7 days;
$35.00 for the next 7 days after that, and $96.00 each day thereafter...
That is 24 detention days after the free time has been subtracted.
This particular shipment is going to cost you $288,000.00 in detention fees!
If you had another shipment that would only cost you $10,000.00 for the same amount of time, you know which one you need business decisions on the soonest, right? Thus, impacting your organization's
budget more positively.