New Calculation Method for Demurrage or Detention Charges
Dear Valued Customer,
With effect from April 1, 2015, APL will be using the following method to calculate demurrage or detention charges upon expiry of the free time allowed:
In the case of normal free time granted under the APL tariffs, the demurrage or detention rate to be applied on any time in excess of the free time will be based on the initial Slab 1 rate. Once the Slab 1 applicable period has been exceeded, the subsequent Slab 2 rate will be applied for any time in excess of the Slab 1 period, and so on.
Using a hypothetical example where an account used a D40 box for 24 days with normal free time at 6 days, and where Slab 1 demurrage rate is $30/day from Day 7 to Day 14 and Slab 2 rate is $50/day from Day 15 onwards, the demurrage due will be ($30 x 7) + ($50 x 11) = $760.
If the same account has additional free time of 10 days under their service contract (i.e. total free time = 16 days), the demurrage or detention rate to be applied on the time in excess of the free time will not start from Slab 1 rate but on other applicable slab rate if the additional free time exceeds the Slab 1 period and so on.
Using the same hypothetical example, the demurrage due will be ($50 x 8) = $400.