- North America Export Demurrage Additional Resources
North America Export Demurrage Additional Resources
Useful Guidance to avoid Dispute Cases:
ONE requests North America Export Customers to follow the below guidance to reduce unnecessary costs (including Detention and Demurrage) as below.
- Check and Review the Earliest Receiving Date (ERD)
North America Export Customers still need to follow the Earliest Receiving Date (ERD) announced & updated by each terminal. The terminal will not accept to receive the container in the gate before ERD regardless of the DFRD/RRD. ONE is not responsible for any costs incurred for non-compliance with terminal ERD or equivalent. (i.e. truck cancellation fee or overtime extra fee).
- Make a good plan for an empty pick up date
Container Detention will be charged when exceeding the published (or agreed) detention free time determined from Empty Pick up to Gate-in whatever ERD/DFRD/RRD is (no change). Customers are requested not to pick up empty equipment too early to avoid incurring detention charges. ONE requests customers check the latest vessel ETB at the time of empty container pick up and follow the latest DFRD as posted on our DFRD Query.
Any invoices generated to customers that are viewed as a dispute must follow the standard ONE dispute process as indicated on the invoice.
FAQ (Frequently Asked Questions):
Q1. What is the benefit of changing the DFRD/RRD rule?
A1. By fixing the DFRD/RRD at the time of Empty Pick-up, ONE expects to eliminate an extra charge (detention or demurrage) in case of vessel further delay after empty pick up.
Before this change, extra Detention was charged if customer gate-in the new DFRD, or alternatively extra Demurrage was charged if customer gate-in per Original DFRD. (Reference: Example Chart 1) in case of vessel further delay after empty pick up.
Q2. Why does ONE apply DFRD/RRD instead of the normal Free Time concept?
A2. ONE intends to minimize a risk of extra charge and dispute due to vessel delay after customers gate-in the empty container. If customers tender an export container on and after DFRD, no ONE demurrage will be charged regardless of vessel delay after gate-in.
In the normal “Free time” concept, additional demurrage will be charged for extra days if vessel delays after container gate-in. (Reference: Example Chart 2)
Additionally, DFRD will contribute to the terminal capacity management because this will be an incentive not to gate-in earlier.
Q3. Should customers follow ERD published by terminals or DFRD?
A3. Customers should follow the latest ERD published by the marine terminals and ONE’s DFRD.
For Inland Rail Facility, Customers should also follow the rail facilities requirement if there is first acceptable date of gate-in (some locations do not have this date).
To avoid export demurrage, Customers gate-in export containers on and after DFRD (Demurrage Free Receiving Date) which is fixed when you pick up the empty container. If there is an illogical sequence between DFRD & ERD, ONE NA will correct the invoice for those exceptional cases.
Q4. How can I check the container's fixed DFRD/RRD?
A4. For DFRD: Customers must confirm the container’s Fixed DFRD on the empty pick-up date using the DFRD Query. The DFRD Query can also be accessed at: us.one-line.com/dfrd-vessel-schedule. The DFRD is based on ONE Rules & Vessel Schedule. Please note that the container’s applicable DFRD is only fixed and locked in on the empty pick-up date. Checking the DFRD query before or after your container’s empty pick-up date may show a different DFRD that does not apply to your container.
For RRD: The container’s Fixed RRD is provided on the Booking Receipt Notice (BRN). The container's applicable RRD is also fixed and locked in on the empty pick up date. Please refer to your most recent Booking Receipt Notice (BRN) for the applicable RRD.
Q5. Will the additional Detention or Demurrage be charged if the vessel further delays after empty container pick-up?
A5. Demurrage: No additional Demurrage will be charged as long as customer gate-in box on and after DFRD. By this update of rule from Dec 2021, DFRD will be fixed (not be changed) at the time of empty pick up even further vessel delay.
Detention: No additional detention will be charged as long as empties are not picked up too early. Customers are requested to make an empty pick up schedule planning not to exceed the detention free time when gate-in.
Q6. Is this applicable to Canada Export Cargo?
A6. Yes this change will be applicable to Canada Export as well as US Export.
Q7. When is the change of this rule effective?
A7. The rule change is effective for export demurrage invoices issued after December 1st, 2021.
For the current Rules, Policy, & Tariff please visit our DFRD Page.
You will be able to access the below resources:
ONE's DFRD (Demurrage Free Receiving Date) Rules
ONE NA's Detention & Demurrage Policy & Dispute Process
Tariff Rule export demurrage free receiving Date at origin for USWC and USEC ports.
Export DFRD US West Coast
Export DFRD US East Coast
PDF version available here.