Per Diem Charge

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Per Diem Charge

A Per Diem Charge, also known as detention, is a fee imposed for each day beyond the specified number of “free” days that a container remains away from the port. It is a common practice in the shipping industry to encourage timely return of containers and efficient use of equipment. Once the allotted “free” days have expired, the per diem charge starts accumulating, serving as an incentive for shippers and consignees to promptly unload or return the container. The per diem charge helps compensate the shipping line for the extended use of their container beyond the agreed-upon period and encourages the efficient flow of containers throughout the supply chain.

 

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