LOS ANGELES CUSTOMS BROKERAGE CAN HELP YOU AVOID
TERMINAL CHARGES, STORAGE, DEMURRAGE AND DETENTION IN
When cargo arrives on an aircraft or a vessel, it is held at a bonded facility until Customs authorizes release, freight and terminal charges are paid, and any other carrier related formalities are resolved.
In the case of Air or LCL Ocean Cargo the facility is usually a warehouse called a Container Freight Station or CFS. Full Container Loads or FCL are held at a Marine Container Terminal.
CFS or Terminal operations are usually operated by a party other than the carrier and they assess a handling charge for unloading the inbound freight and holding it.
These are called Terminal Charges.
On Air and LCL shipments, the charges are typically assessed separately from freight charges and must be remitted before shipments can be picked up.
FCL import rates to the US usually include terminal charges paid by the carrier not the importer.
FCL shipments destined for interior locations will be transferred in bond to a trucking company or railroad and be on forwarded to a container yard at the destination city.
Upon arrival,Terminals give Free Time that a shipment can wait before it is picked up.
.Air Freight is usually 2 days, Ocean FCL and LCL, 4 to 5 days are typical, while railheads often give only 1 day in addition to the day the container arrives.
If cargo sits at the facility beyond free time, Storage Charges are assessed on a daily basis for each day freight is held beyond the Last Free Day..
On FCL shipments where a container sits at the terminal, this term is called Demurrage.
Demurrage is very expensive. $200 days per day or more is typical.
After a Container is picked up, it can only be kept for a limited time period. This is usually 5 days, but some parties are able to negotiate significantly longer times.
If this time is exceeded, the drayage company who removed the container from the terminal will be charged for Equipment Detention.
Of course the drayage company would typically bill back their customer for the charges incurred.