Avoiding Detention, Demurrage and Per Diem - It's in the Data

Scrutiny of detention, demurrage and per diem has never been greater. Cost and risk for all parties are peaking. Pending Federal Maritime Commission (FMC) audits for ocean carriers have raised the stakes on process integrity, accounting, and invoicing accuracy. Similarly, high fees make any return of equipment past the last free day expensive for shippers and intermediaries.


The process for managing equipment is complicated because of volume, variability, and variation. Let's break it down.


Volume is the number of equipment pieces as well as their dispersed locations. Tracking equipment is cumbersome due to the large number of items and the large number of locations.

Variability is the different methods for calculating free time based on varied contract and tariff terms.


Variation is the different sources and types of data used to track equipment to limit demurrage and detention exposure.

The result is that managing detention and demurrage becomes a laborious process requiring a lot of data and time. Since time is of the essence, Splice offers a few ways to make the detention and demurrage management process more efficient.

Using Splice to Avoid Detention, Demurrage and Per Diem

As an integration platform, Splice simplifies the aggregation of data and serves as a single point of integration, making it easier to streamline data collection from multiple sources. This solves the volume, variability and variation problem inherent to Detention, demurrage, and per diem.

Take a yard management platform built on Splice. The system collects information from multiple tools to pinpoint the location of containers, like satellite tracking data, GPS and mobile phone cameras that read container numbers. Splice merges location data with customer and free day information to create a common operating picture. This helps to visually determine the priorities for returning containers and avoiding late fees, as we've explained in detail in a recent case study.

Splice is purpose-built for container logistics, and our team understands the complications and urgency to manage equipment per commercial contracts and the FMC’s Interpretive Rule. We provide the necessary infrastructure to bolster current applications and processes that manage demurrage, detention and per diem.


Are you looking to optimize the management of your detention and demurrage processes? Contact us and see how Splice help.