Per Diem Charge

What is per diem charge?

Also known as “detention,” a per diem charge is the fee that an ocean carrier charges for each day past the number of “free” days a container spends away from the port.

How and why is per diem charge implemented?

Per diem charges exist because it is important for ocean carriers to stay on schedule and to do that they need their containers in circulation not sitting somewhere holding a shipper's goods. Thus, per diem charges discourage importers from storing containers for an extended period of time.

How much are per diem charges?

Per diem charges vary by carrier and port, but they normally range between $100 and $250 per day for each container.

What happens if you need to keep storing cargo?

The best way to store cargo without incurring per diem charges is to have your cargo offloaded and stored at a warehouse. While warehousing isn’t free, it will be significantly cheaper than per diem charges and will allow the trucker to return the container to the carrier in time.

How much does per diem cost?

Per diem charges vary by carrier and port, but they normally range between $100 and $250 per day for each container.

How can I avoid per diem charges?

• Keeping track of the containers or other ‘borrowed’ equipment once you’ve pulled them from the yard.

• Making sure you are clear on when they need to be returned to the yard.

• Handling the containers at hand in a “first in first out” technique - meaning the oldest inventory items (containers/equipment) are handled first so once they’re emptied, they can be returned without delays.