Shipper fury at demurrage and detention (D&D) charges levied by carriers serving US ports suddenly became a lot more understandable today.
According to new research from online container logistics platform Container xChange, there are huge variations in the levels of D&D charges around the world – not only between the major ports, but between different carriers in any given port.
The research shows that D&D fees in Long Beach and Los Angeles are by far the world’s most expensive.
It found that shippers in Los Angeles and Long Beach respectively pay an average of $196.88 and $173.28 a day per 20ft dry container, after a 14-day free period.
“For shipments going to European hinterland locations, Hamburg, Antwerp and Rotterdam offer similar conditions, the port of Hamburg comes in as the most expensive, at $65 for a 20ft dry containers on day 14, followed by Rotterdam at $53 and Antwerp at $49.
“However, comparing carriers still makes sense, as charges levied by shipping lines range from $21.80 to $136.25 for a 20ft on day 14. As a result, Hamburg can be $60 per container per day cheaper if you choose Yang Ming ($21 pc/pd) in Hamburg, instead of Maersk ($76 pc/pd) in Antwerp,” the report says.
Meanwhile in South-east Asia, the average D&D charge is $41.33 in Singapore, nearly double that of its main competitor in the region, Malaysia’s Port Klang, where the average D&D charge is $21.
And there is a further factor for carrier customers to take into account: the number of free days offered by carriers at ports – in Long Beach and Los Angeles, the average number of free days offered is just over four, while in Busan it is just over 10.
And within a single port, free days offered by carriers can vary by an even greater degree – in Rotterdam, Maersk offers 4.5 days free, while Cosco offers 11 days.
“If you compare free days [in Rotterdam] and choose Cosco instead of Maersk, it saves you up to $247 for a 20ft,” the report says.
In addition to the research, Container Xchange has developed an online D&D calculator for shippers and their 3PLs to compare charges across different ports and carriers.