Question: What Is Per Diem In Logistics?

Per diem (per day) is a detention fee where a fixed rate is charged per container per day until the equipment is returned to the port or container yard. Keeping equipment beyond that free time results in a detention charge, also called a per diem fee. Detention/per diem can be incurred on both containers and chassis.

What is per diem in drayage?

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.

What is per diem charge meaning?

Per diem payments are daily allowances paid to employees to cover costs incurred while on a business trip. Per diem—the Latin term for ” per day” —can also refer to a structural compensation system in which an employee is paid per day, as opposed to per hour or per month.

What is per diem intermodal?

A per diem charge is a fixed rate per day that a carrier charges against another carrier or customer for use of its containers, trailers or chassis. Per diem charges accumulate until the equipment is returned to the port or rail terminal.

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What is a demerge fee?

Demurrage is a fee attached to cargo that has overstayed its time at a terminal. These fees can be enforced by port officials. Depending on the vendor, terminal, warehouse or container station, fees and policies can vary. The amount of time you must pick up your cargo without being charged varies from vendor to vendor.

Whats is per diem?

Per diem is a Latin phrase that means “for each day.” Per means “for each” and diem means “day” in Latin. People often use the phrase per diem when talking about employee classifications and business travel expenses. You might have heard of a “per diem employee” or a “per diem meal allowance.”

What is the difference between per diem and detention?

Detention is charged when the carrier’s equipment is still in use by the shipper or consignee beyond the LFD, regardless if full or empty. Per Diem: A detention fee where a fixed rate is charged per container per day until the equipment is returned to the port. Per diem and detention are often used interchangeably.

What is the purpose of per diem?

Per diem (Latin for “per day” or “for each day”) or daily allowance is a specific amount of money that an organization gives an individual, typically an employee, per day to cover living expenses when travelling on the employer’s business. A per diem payment can cover part or all of the expenses incurred.

What is per diem used for?

Per diem is an allowance paid to your employees for lodging, meals, and incidental expenses incurred when travelling. This allowance is in lieu of paying their actual travel expenses. 2.

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How does a per diem job work?

A per-diem job is work you complete on an as-needed basis for a company. Per-diem employees get paid for each day they work (per diem is Latin for “per day”), and the hours often vary from week to week.

What is demurrage and detention?

Demurrage refers to the charge that the merchant pays for the use of the container within the terminal beyond the free time period. Detention refers to the charge that the merchant pays for the use of the container outside of the terminal or depot, beyond the free time period.

How much is detention pay for truckers?

“Detention rate” is the fee carriers charge for their detention time. Rates can range from $25-100 an hour. This fee does not fully make up the cost of the driver’s stationary truck and lost time, but it softens the blow. For shippers, detention rates are unexpected costs and cut their profits.

What is the difference between demurrage and storage?

DEMURRAGE becomes: “ the charge applicable for the use of the Equipment (not space), after the free time expires.” STORAGE becomes: “the charge applicable for the use of the space at the terminal (so now includes also terminals along with Rail Depot and warehouses), after the free time expires.”

What is demurrage and dispatch?

A lot of the times however these terms have been confused with a similar sounding combination Demurrage and Despatch.. In this case the term Demurrage refers to the time that the shipowner has lost because the charterer could not complete the required cargo operations within the stipulated/agreed time frame..

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How much is demurrage per day?

The cost of demurrage charges vary depending on carriers, terminals, and contractual agreements. However, they tend to be anywhere between $75 to $300 per container/ per day. After several days, the charges can grow to more significant amounts.

How is demurrage calculated?

In the calculation of demurrage amount payable to shipowner, demurrage rate is multiplied by the number of days or part of day in excess of the agreed laytime. For example: Total Laytime Allowed 11 days. Demurrage Rate $60,000 per day pro rata (PDPR)

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