CARM: What all importers need to know about CARM

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Terminology Explained

Demurrage – The fee charged by steamship lines on a container, once free time at a destination terminal expires.  Free time normally begins one working day after a container arrives at destination and the typical free time period is five working days.  After free time expires, the steamship line will charge a fee per calendar day (on average US$100.00 – $150.00 per day).  This rate typically increases after five days.  In regards to reefer containers, the normal free time period is less, normally three days, and the rate per day is higher (on average US$200.00 – $300.00 per day).  This rate also typically increases after three days.  The charge ceases once the empty container is returned to the steamship line.

Chassis Detention – The fee charged by a container haulage company, once free time expires after a container has been collected from a container terminal, and the container remains on the carrier’s chassis.  Normally, carriers allow 24 – 48 hours free time after a container has been collected.  After this free time expires, daily chassis detention fees are charged (on average CA$45.00 – $60.00 per day).  In the case of reefer containers, normally there is no free time (as in the case when delivery cannot be made upon collection) and the fee per day is higher than standard containers (on average CA$150.00 – $200.00 per day).  The charge ceases once the container is returned to the terminal and removed from the carrier’s chassis.

Terminal Storage – The fee charged by destination terminals, once free time expires after a container has arrived.  Free time varies between terminals across Canada.  In some cases, it is as little as one day after arrival, after which a daily storage fee is charged (on average CA$200.00 – $300.00 per day).  Certain terminals also charge a higher rate per day for reefer containers.  Many terminals also increase the daily terminal storage fee for both standard and reefer containers after a set number of days.  The charge ceases once the container is collected from the terminal.

For more information, contact David Lychek, Manager – Ocean & Air Services.

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Quick Tip #36
Report Lost and Damaged Cargo to your Forwarder, Carrier and Insurer as soon as possible

Any loss or damage to cargo should be reported immediately to the company or the company’s nearest settling agent.

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