Detention and Demurrage Optimization Shipment Lifecycle

This page provides an overview of the shipment lifecycle for Detention and Demurrage Optimization in Project44's visibility solution. It explains when tracking starts and ends, how cost calculations work, and the different cost tiers applied during the lifecycle.

When Does Detention and Demurrage Tracking Start?

Detention and Demurrage Optimization tracking starts when a shipment reaches an import terminal at Port of Discharge where Project44 has data connectivity.

Conditions for Detention and Demurrage tracking initiation:

• Standard ocean shipment tracking is already active
• Container reaches Port of Discharge
• The terminal is in Project44's data provider network for terminal visibility
• Container discharge occurs and terminal processing begins

How to verify Detention and Demurrage tracking start:

• Detailed terminal events begin appearing (e.g., CUSTOMS_HOLD, AVAILABLE, LAST_FREE_DAY)
• Cost information becomes available in tracking responses

When Does Detention and Demurrage Tracking End?

Detention and Demurrage tracking concludes when the container lifecycle is complete and the empty container is returned to the carrier.

Detention and Demurrage tracking ends when:

• GATE_IN_EMPTY_CONTAINER_AT_TERMINAL event occurs
• Empty container is returned to the designated depot
• Standard ocean tracking ends (manual termination, timeout, etc.)
• Container shipment is removed from booking

How to verify Detention and Demurrage tracking end:

• Final GATE_IN_EMPTY_CONTAINER_AT_TERMINAL event recorded
• Cost calculations are finalized
• Shipment state changes to COMPLETED

Demurrage Cost Calculation

Demurrage costs apply when containers remain at the terminal beyond the agreed free time after discharge.

When Does Demurrage Calculation Start?

Start Point: Container discharge from vessel at Port of Discharge Trigger Event: DISCHARGE_FROM_VESSEL_AT_PORT_OF_DISCHARGE Cost Basis: Days beyond Last Free Day as defined in customer contract

Vessel Discharge → Free Time Period → Last Free Day → Demurrage Charges Begin

Key Factors:

• Free time period starts counting from discharge date
• LAST_FREE_DAY event marks the final day before charges apply
• Daily rates are based on customer-uploaded carrier/terminal contracts
• Container type and size affect rate calculations

When Does Demurrage Calculation Stop?

End Point: Container departure from terminal Trigger Event: GATE_OUT_FULL_AT_PORT_OF_DISCHARGE Final Calculation: Total demurrage charges based on actual days at terminal

Key Points:

• Demurrage stops accruing when container leaves the terminal
• Final charges calculated based on total days beyond free period
• Cost tier escalation applies based on duration at terminal

Detention Cost Calculation

Detention costs apply when containers are held by the customer beyond the agreed free time after pickup.

When Does Detention Calculation Start?

Start Point: Container pickup from Port of Discharge or rail terminal Trigger Event: GATE_OUT_FULL_AT_PORT_OF_DISCHARGE Cost Basis: Days beyond agreed free time period from customer contract

Gate Out Full → Free Time Period → Detention Charges Begin

Key Factors:

• Free time for detention typically separate from demurrage free time
• Clock starts when customer takes physical possession
• Applies until empty container is returned to carrier

When Does Detention Calculation Stop?

End Point: Empty container return to carrier facility Trigger Event: GATE_IN_EMPTY_CONTAINER_AT_TERMINAL Final Calculation: Total detention charges based on days in customer possession

Key Points:

• Detention stops when empty container is returned to designated depot
• Charges based on total days beyond free time allowance

Cost Tier Structure

Detention and Demurrage costs typically follow a tier-based escalation structure with increasing daily rates:

Cost Tiers

Tier Progression

Cost Escalation Example:

Days 1-5: FREE_PERIOD ($0/day)
Days 6-10: FIRST_PERIOD ($75/day)
Days 11-15: SECOND_PERIOD ($150/day)
Days 16+: THEREAFTER_PERIOD ($300/day)

Key Points:

• Tier definitions vary by carrier and terminal contracts
• Customer-uploaded contracts determine exact tier boundaries and rates
• Container type and size may affect rates within each tier
• Both demurrage and detention follow similar tier structures but with separate calculations

Cost Tracking Events

Project44 provides real-time cost tracking through these events:

• LAST_FREE_DAY - Final day before charges begin
• COST_UPDATE - Real-time cost calculation updates
• Tier transition notifications when moving between cost periods

Integration with Standard Ocean Lifecycle

Detention and Demurrage optimization enhances the standard ocean shipment lifecycle without disrupting existing tracking. The complete journey includes:

1. Pre-Carriage Phase (Standard tracking)
   • Pickup and inland transport to POL
2. Main Ocean Carriage (Standard tracking)
   • Vessel loading, transit, and transshipments
3. Import Terminal Phase (Enhanced Detention and Demurrage tracking along with standard tracking)
   • Discharge through container availability
   • Cost calculation period begins
4. Post-Carriage Phase (Enhanced Detention and Demurrage tracking along with standard tracking)
   • Detention period tracking
5. Empty Return Phase (Enhanced Detention and Demurrage tracking along with standard tracking)
   • Empty container return to terminal
   • Cost calculation period ends