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Pick-Up/Drop-Off Service PIO

Abbreviation
PIO
Short code for this term
Category
Fees & Surcharges
Ocean freight fee type
Index
P
Alphabetical index letter

Definition

The Pick-Up/Drop-Off Service fee, commonly abbreviated as PIO, is a logistical charge associated with the handling of empty shipping containers at designated locations. This fee arises from the need to efficiently manage the movement and turnover of empty containers, ensuring they are returned to or retrieved from specific depots or terminals. Typically, the charge is levied by the container depot or terminal operator and is paid by the party responsible for the container's movement, often the shipping line or freight forwarder acting on behalf of the cargo owner.

This fee is applicable in scenarios where containers need to be repositioned for reuse or returned after unloading, particularly in regions with imbalanced container flows. The PIO fee covers the administrative and operational costs incurred by the depot or terminal for handling and storing the containers, as well as any equipment and labor required for these processes. The calculation of this fee can vary, often depending on the distance to the depot, the time taken for the operation, and the specific terms outlined in the shipping contract or service level agreement.

It is crucial to distinguish the PIO fee from other related charges such as demurrage, which pertains to the extended use of containers beyond the agreed free time. Additionally, detention fees may apply if containers are not returned within the stipulated period.

In practice, stakeholders should meticulously verify the terms and conditions associated with the PIO fee in their shipping contracts to avoid unexpected costs. It is advisable to coordinate closely with freight forwarders and shipping lines to optimize container logistics and minimize unnecessary charges, taking into account the strategic positioning of depots and potential delays in container movements.

Summary

Pick-Up/Drop-Off Service fee for picking up or returning empty containers at designated locations.