Per Diem Charge

What is a per diem charge?

A per diem charge is the fee the ocean carrier charges for each day past the number of “free” days that the container is away from port. Per diem is also known as detention.

Why is the per diem charge implemented?

The ocean carriers are eager to get their containers back so they can keep them in circulation. The per diem charge discourages importers from storing containers for long periods of time.

What if I need to keep storing the cargo?

If you need to store your cargo for a longer amount of time but wish to avoid per diem charges, you will need to have the container unloaded at a warehouse. The storage charges at a warehouse are significantly cheaper than per diem charges, and the trucker will be able to return the container back to the carrier on time.

How can you avoid per diem charges?

Pick up the container and return the empty on time. The number of free days and the day the clock starts depend on the carrier, the port and your contract, so check the terms. Per diem rates usually rise the longer you hold the container.

Delays at the delivery site, a shortage of chassis or an unavailable appointment are common causes. Tell your forwarder early if your warehouse can't receive the container, so they can arrange a pre-pull or an earlier unload.

Back to the full glossary.