What is Detention?
Fees charged for retaining a shipping container beyond the allotted free time for unloading and return. In the context of U.S. customs and tariff recovery, understanding detention is essential for navigating the CAPE refund process and ensuring accurate duty assessment.
Definition
Detention is a charge assessed by an ocean carrier when a shipping container is not returned to the carrier's designated location within the allotted free time after being picked up from the port terminal. While demurrage applies at the terminal (before pickup), detention applies after the container has been taken to the importer's facility for unloading. Free time for detention is typically 4-7 days. After that, daily charges accrue until the empty container is returned. Some carriers combine demurrage and detention into a single 'D&D' charge schedule.
How Detention Relates to Tariff Refunds
Like demurrage, detention charges are logistical costs, not customs duties. They cannot be recovered through CAPE. However, importers who face frequent detention charges may want to optimize their unloading and container return processes to reduce total landed cost.
Example
A carrier allows 5 days of free detention after container pickup. The importer takes 8 days to unload and return the container. The carrier charges 3 days of detention at $125/day = $375.
Frequently Asked Questions
- How can I reduce detention charges?
- Unload containers promptly, return empties to the closest carrier depot, and negotiate longer free time in your carrier contracts.
- Are detention charges tax-deductible?
- Generally yes, as ordinary business expenses for importers. Consult your tax advisor for specifics.
Related Terms
Legal References
- FMC Interpretive Rule on Demurrage and Detention (2020)
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