Supply Chain Management Professional (SCMP) · Question
What is 'detention and demurrage' in shipping and logistics?
Detention refers to charges for holding a container/trailer outside the port/terminal beyond the free time. Demurrage is for holding it inside the port/terminal
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Question: What is 'detention and demurrage' in shipping and logistics?
Answer options:
- Fees for storing goods in a public warehouse. ✅ Charges for holding freight containers or trailers beyond free time.
- Costs for customs duties and taxes on imported goods.
- Insurance premiums for cargo during transit.
Correct answer: Charges for holding freight containers or trailers beyond free time.
Explanation: Detention refers to charges for holding a container/trailer outside the port/terminal beyond the free time. Demurrage is for holding it inside the port/terminal beyond free time, both leading to extra costs.
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