Rule 8.0: Detention/Demurrage (Use of Carrier Equipment)

1. For the purpose of this rule, the term “Shipper” shall mean the Shipper, the Consignee or any person acting for or on behalf of the Shipper or Consignee. For the purpose of this rule, the term “Equipment” shall mean containers (dry & refrigerated), trailers (dry & refrigerated), specialized equipment (flat racks, flat beds, platforms, open tops, tanks and equipment not otherwise specified herein), chassis to include component parts and/or bogies and related equipment including, without limitation, tires, tubes, wheels and refrigeration units either as a unit or alone.

2. For the purpose of this rule, Detention & Demurrage charges are combined as one charge. Carrier does not differentiate between free time allotted in or out of port facilities.

3. Detention/Demurrage is a per diem charge applicable to Shipper’s use of Carrier’s equipment beyond the allotted free time.

4. Detention is defined as: Equipment detained beyond an agreed period of time. When equipment is incurring detention, the equipment is not in the carrier’s possession.

5. Demurrage is defined as: Equipment remaining on port facilities beyond an agreed period of time. When equipment is incurring demurrage, the equipment is in the carrier’s possession.

6. Free Time is defined as: An agreed to period of time a shipper has for container pick up, unload or load and return equipment to Carrier or Carrier’s Agent.

7. Carrier will charge Detention/Demurrage charges for each calendar day including weekends and holidays if equipment is not returned to Carrier within the allowed free time. For the purpose of this rule, the first “day” shall be of time commencing at 0800 the day after vessel discharge. Free time expires per the table(s) below at which point daily charges will accrue until the equipment is returned to Carrier or Carrier’s Agent.

8. With respect to the application of this Rule, when the same equipment is utilized for shipments by the same Shipper to and from the same location, origin and destination free time shall be calculated on the basis of each being a distinct shipment.

9. In the event the Carrier establishes equipment pools, the demurrage applicable to equipment obtained from such pools shall be calculated in accordance with the provisions of this Rule until the equipment is returned to the Carrier’s port terminal nearest to the equipment pool.

10. In the event the equipment has not been returned within 30 calendar days, the Carrier will have the right to retrieve the equipment whether loaded or unloaded. Carrier provides Shipper/Consignee as well as appropriate Governmental Authorities advance notice before taking such action. In such situations, all additional expense incurred such as trucking, handling, detention/demurrage charges, storage or disposal of cargo will be for the account of the cargo.

11. Payment for all charges is due upon presentation of invoices for charges accrued. Payment will be collected by the Carrier or authorized agent.

A) Nassau – Payments due in excess of the 30 (thirty) day period will be considered to be delinquent. In the event of a delinquency, credit privileges will be revoked. A cash bond of US $500.00 (or other form of acceptable security) per container/chassis to guarantee payment of anticipated demurrage prior to the future release of any additional Carrier equipment to the Shipper will be collected.

12. Carrier will refuse delivery of any equipment, which has accrued detention/demurrage charges for a period in excess of thirty (30) days until such charges have been paid. Should account wish to receive the cargo at the Carrier’s terminal facility, the applicable handling rate will apply in addition to all other rates and charges herein.

13. Carrier will decline to furnish equipment for shipments of any cargo in instances where the account for such shipments is holding Carrier’s equipment beyond the free time provided except where the failure to return equipment during free time is caused by Carrier’s action or inaction.

14. Standard Equipment Interchange Agreement: The Carrier’s Equipment Interchange Agreement is to be used with respect to interchange of Carrier’s equipment to Shippers, Consignees and their respective Agents. All Detention/Demurrage charges or other charges not governed by this Rule shall be covered by the provisions of the Equipment Interchange Agreement.

15. A security deposit of $2000.00 per container will be required at destination for all shipments of Christmas Trees moving in Carrier’s Equipment. The deposit can be made in cash, money order or business check of a Shipper who has met Carrier’s credit requirements. The security deposit will be held by the Carrier and shall be used to cover detention/demurrage expenses should the equipment fail to

return in the applicable free time. Should the container be returned to the Carrier within the applicable free time, the Carrier will return the entire security deposit to that party provided the security deposit. Should the shipper fail to return the equipment to the Carrier within the applicable free time, the Carrier will use the proceeds of the security deposit to satisfy all accrued demurrage and other charges.

Any funds remaining after settling these charges will be returned to the party that provided the security deposit.

16. For equipment held beyond the Free Time, charges for detention/demurrage will apply as set forth below. Free Time is calculated separately for each piece of equipment.  

17. Unless otherwise agreed in a confidential service agreement, in the event a Shipper or Consignee has failed to pay demurrage or detention charges within 30 days of the date of any invoice for demurrage or detention, Carrier may refuse to allow the Consignee to remove Carrier’s container from the marine terminal at which the container was discharged. Consignee may arrange to pickup the cargo in such container at the marine terminal by unlading it from Carrier’s container into consignee’s own container, subject to payment in cash of such charges as may be applicable at the marine terminal for such stripping and stuffing.

Detention/Demurrage (Use of Carrier’s Equipment) Within the United States:

Detention/Demurrage (Use of Carrier’s Equipment) Within the USVI: