International Trade: How to Save on Detention Charges

Detention charges are charges charged by the Shipping line on per container per day basis for holding containers for more time. You can assume detention charges on containers as the rent of containers. These charges in slabs are low for the initial 4-5 days and thereafter they increase exponentially. 

During the import, documentation, handling, customs clearance, destuffing in the warehouse may take some time, and containers may attract detention charge. Depending upon your relation and volume of trade with the shipping line, the shipping line may provide you some detention free days for customs clearance and de-stuffing of containers, and return of containers.  

In case you do not have bargain power with the shipping line, you may have to provide bond /charges to the shipping line for obtaining some detention free days. In some cases, the exporter may be requested to provide some detention free days at disport for clearance and return of cargo. Extra- detention free days at discharge port provided by exporters also come at some cost that you may have to bear, however that may be lower than what you would have to pay. The simple reason for a low-cost pre-paid detention-free period from load port is due to the fact that the exporter may have a large volume of trade with the shipping line and may thus be in a position to negotiate. The extra detention free days are mentioned in Bill of Lading.

Pros and Cons of detention free days obtained through exporter vs arranged by the importer at disport

Detention arranged
by Exporterby Importer
Pros
- Could be cheaper 
Pros
- You pay for the number of days
those are actually used 
Cons
- Cost is included in CIF
- You never know , how many days
could be required at disport
Cons
- Rate could be higher

For more on International Trade : Guide to Import Export for Beginners