Detention and Demurrage Optimization

In logistics, and especially in ocean transportation, interchange points are a major source of delays and additional costs. This is especially significant at the terminals when the loading and unloading of containers happen, as well as additional processes like customs clearance. Project44's Detention and Demurrage Optimization provides real-time visibility into the status of containers at the terminal. This visibility allows for better planning and execution of the terminal processes, reducing delays and costs.

🏢 Terminal Visibility

Ocean freight containers move through import terminals during their journey. Project44 provides visibility into import terminals, where containers are discharged and made available for customer pickup.

We provide detailed import terminal milestones that track container availability, holds, clearances, and cost-triggering events. This visibility focuses on the critical post-discharge phase, where detention and demurrage costs are typically incurred.

📦 Shipment Scope for Demurrage & Detention Optimization

Detention and Demurrage Optimization applies to:

• Ocean Shipments (standard Port to Port tracking)
• Extended Ocean Shipments (with freight forwarder integrations)

All ocean shipment types benefit from enhanced terminal visibility when containers reach import terminals where Project44 has data connectivity.

⏰ When Tracking Starts

Terminal visibility tracking begins once the container reaches the Port of Discharge.

After arrival at the Port of Discharge, Project44 automatically begins capturing detailed terminal datapoints including container status, holds, releases, and cost-related events.

Key Identifiers

Global Requirements:

• Container Number
• Booking Number OR Bill of Lading

North America Specific:

• Container Number + Bill of Lading are required to fetch detailed terminal shipment information for that specific container

📊 Terminal Events Provided

Project44 surfaces the following high-level event categories from import terminals:

• Arrival - Container arrival and discharge events
• Holds & Clearances - Customs holds, carrier holds, and release events
• Gate Moves - Gate in/out movements and container handoffs
• Last Free Day - Critical deadline notifications for cost calculations
• Availability - Container available for pickup at the terminal
• Fees/Status Updates - Real-time cost updates and status changes

Please refer to the Tracking updates for a complete list of all event types and their descriptions.

💰 Demurrage & Detention Costs

Project44 provides visibility into both demurrage and detention costs for import terminals.

Definitions

Demurrage: Charges against the container for storage at the Port of Discharge before gate-out.

Detention: Charges incurred from pickup from the carrier (gate-out/full) at Port of Discharge until the container is returned to the carrier (empty return/gate-in).

Timing & Cost Structure

The last 3 days before free time expiration are critical for cost optimization. Tiered cost structures typically apply, with escalating daily rates across multiple periods:

• Free Period
• First Tier
• Second Tier
• Third Tier (and beyond)

Cost Computation

Costs are computed based on customer-uploaded contracts and are specific to the Port of Discharge for each shipment. Contract terms include free time allowances, daily rates, and tier escalation schedules.

📋 Customer Action Required

Contract Upload Required: Customers must upload their carrier and terminal contracts to enable demurrage and detention cost calculations.

Important: Costs are not derived by default without contracts. Project44 relies on customer-provided contract terms to accurately calculate detention and demurrage charges based on actual agreement terms.