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What's the difference between Free Time, Demurrage, Detention? - YouTube
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this time let's take a look at the terms
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free time and detention when
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transporting by fcl we often care about
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free time this term refers to the length
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of the time a container can be stored
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free of charge at the port you can store
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a container for an agreed length of free
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time for example 7 days to 14 days there
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are additional terms to remember in
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combination with free time
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these are demurrage and detention let's
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take a closer look after we explain free
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time free time refers to the length of
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time a container can be stored free of
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charge at the port
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it is generally a period of 7 to 14 days
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for dry container the length of the time
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can be extended upon request from a
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freight forwarder our company can extend
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for a period of up to 21 days of free
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time for Japanese main ports the length
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of free time varies depending on the
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shipping lines you need to confirm the
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length of free time available to you
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when booking your cargo the length of
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free time is shorter usually less than
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seven days for Reaver container open-top
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container and flat rack container please
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remember to check this in advance you
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might think you should collect a
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container as soon as it arrives at the
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port however free time is used for the
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following situations time taken to clear
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customs when there is no space available
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to store the cargo at the factory the
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time taken to arrange drainage the port
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is not a warehouse there for cargo
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should be collected immediately when
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there is no issue however in general
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free time is used when there is an issue
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now let's take a look at the term
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demurred demurrage is a storage fee that
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occurs after the length of free time has
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been exceeded as previously mentioned
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the port is not a warehouse and the
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container yard has limited space
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demurrage is used to prevent containers
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being stored at the port for a long time
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actually demurrage is not cheap here is
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an example of how demurrage cost can
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increase in Japan
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day one to day three 13,000 yen for 140
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feet container daily day for today six
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increased to twenty five thousand yen
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per container daily from day seven cost
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increases to forty thousand yen per
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container daily the longer the
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containers are stored at the port after
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free time the higher that emerged cost
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will be understandably as shipment of
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ten containers will cost you a lot of
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money now let's take a look at the term
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detention detention is a length of the
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time allocated for collecting a
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container from a port unloading the
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cargo and returning the empty container
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to the port you will incur additional
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cost if you exceed this time containers
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belong to shipping lines the system
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requires all containers to be returned
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correctly once finished delivering the
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cargo here is an example of free time
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and detention calculation method free
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time is 14 days and detention is seven
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days estimated time of arrival eta for
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the vessel to arrive at the port is May
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first container is lift off from the
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vessel and loaded into the container
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yard on May 3rd in this case free time
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covers until May 17th
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some countries count free time based on
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ETA whilst others start after the vessel
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arrival which you should confirm in
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advance if you collect the container on
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May 17th the last day of free time
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detention is counted the day you collect
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the container meaning May 24th is the
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last day we usually do not have the case
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that the customer useful detention
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period but I hope the description enable
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you to understand finally let's take a
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look at some of the common problems with
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free time customs may be unable to
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complete their checks during free time
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especially when importing new products
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of which you do not have past import
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experience there is a potential for
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essential documentation to be missed
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certain food and chemical products
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cannot be imported without a specific
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import permission or license this can
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take time to register also if there are
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any mistakes on the B L it
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take time to amend and demurrage costs
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may occur before exporting a new product
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you need to discuss and make
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arrangements with a freight forwarder to
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avoid these problems don't forget to pay
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attention to document mistakes such as
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BL by now you understand the terms free
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time detention and emerge the most
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important thing is to utilize free time
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and prevent the merge occurring I have
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been working as a freight forwarder for
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a long time and I have seen cases which
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incurred emerged because the problem is
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on product register and documentation
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payment issues between the buyer and a
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seller congestion at a port after a long
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holiday season free time is very
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important factor within international
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logistics please ensure you check
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details in advance and are prepared in
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this channel I explained about the
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technical term and job description in
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logistics if you are interested in
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logistics work or if you already work in
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the logistics industry I believe that
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this channel will be a good support for
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your job if this time video get the good
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support for your understanding please
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subscribe press good or comment anything
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well see you next time
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