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CMA-EDDI Equip detention& demur. import

Container

Key Information

Who Charges Shipping carriers
Who Pays Importer
When Applied Per container

What is CMA-EDDI?

CMA-EDDI, or Equipment Detention and Demurrage Import, is a crucial fee in international logistics, specifically associated with the use of containers beyond the designated free period. This charge arises when importers or their agents retain shipping containers past the agreed-upon timeline, either within the terminal (demurrage) or outside the terminal facility (detention). Such fees are levied by the carrier, in this case, CMA CGM, to compensate for the unavailability of their container equipment, which could otherwise be used for other shipments.

Importers or their logistics partners are responsible for paying this fee. The need to manage container traffic efficiently and ensure the availability of equipment for subsequent shipments makes this charge necessary. The fee structure typically depends on the duration the container is held over the free period and may vary according to the shipping line's policy and the port's location.

Unlike storage fees, which are charged by terminal operators for keeping containers within their premises, detention and demurrage fees are directly related to the usage of the equipment itself. It is essential for importers and freight forwarders to be aware of the free time allocated for each shipment, as well as any potential delays in customs clearance or inland transportation that could extend container usage.

In practice, logistics professionals must meticulously coordinate with customs and inland transportation providers to avoid unnecessary delays. Proactive communication with the carrier can also facilitate extensions or negotiation of terms if delays are anticipated. Understanding the distinctions and implications of these charges can significantly impact cost management and operational efficiency in supply chain logistics.

Frequently Asked Questions

What is CMA-EDDI fee in shipping?

The CMA-EDDI fee, or Equipment Detention and Demurrage Import, is a charge applied when importers keep shipping containers beyond the free period either in or out of the terminal. This fee compensates the carrier, CMA CGM, for the unavailability of their container equipment.

Who pays and who charges the CMA-EDDI fee?

The CMA-EDDI fee is charged by the shipping carrier, such as CMA CGM, and is paid by the importer. This fee is imposed when containers are retained beyond the agreed timeline, affecting the carrier's equipment availability.

How is the CMA-EDDI fee calculated?

The CMA-EDDI fee is calculated per container and depends on how long the container is retained beyond the free period. Exact rates can vary based on the carrier's policy, so importers should check specific terms to understand potential costs.

How to avoid paying the CMA-EDDI charge?

To avoid the CMA-EDDI charge, ensure timely return of containers within the designated free period. Efficient logistics planning and coordination with customs can help minimize delays and potential detention or demurrage fees.