---
title: "Perdiem"
description: "By the Day"
url: "https://oceancargo.co.uk/shipping-terms/perdiem"
date: "2026-04-30T12:04:47+00:00"
language: "en-GB"
---

![Ocean Cargo](https://oceancargo.co.uk/images/GenPics/OCs-Customs-Brokerage.webp)

 # Per Diem in Shipping: Understanding Daily Charges for Equipment Use

## What is Per Diem in Freight Forwarding?

In the intricate world of global logistics, understanding every charge and acronym is crucial for effective supply chain management. One term that frequently arises, particularly in containerised shipping, is "Per Diem." Derived from Latin, meaning "by the day," Per Diem refers to a daily charge levied by shipping lines or equipment owners for the use of their containers or other equipment beyond a specified free period.

Essentially, Per Diem acts as a rental fee. When a shipping container arrives at its destination port, or is picked up from a depot, there's an allotted time – known as "free days" – during which the consignee can unload the cargo and return the empty container without incurring additional costs. If the container is held for longer than this free period, Per Diem charges begin to accrue for each subsequent day until the container is returned.

For businesses relying on efficient freight forwarding, like those partnered with [Ocean Cargo](https://oceancargo.co.uk/), comprehending Per Diem is vital. These charges can quickly escalate, impacting overall shipping costs and potentially eroding profit margins if not managed proactively. Ocean Cargo's expertise in [sea freight services](https://oceancargo.co.uk/services/sea-freight/) includes guiding clients through these complexities, ensuring transparency and cost-effectiveness.

## Demurrage vs. Detention vs. Per Diem: Clarifying the Differences

The terms Demurrage, Detention, and Per Diem are often used interchangeably, leading to confusion. While all relate to charges for extended equipment use, they apply at different stages of the shipping process and are levied by different entities. Understanding these distinctions is key to avoiding unexpected costs.

### Demurrage

- **What it is:** A charge for the extended use of a shipping container while it is still under the control of the shipping line, typically within the port or terminal.
- **When it applies:** After the free days for holding the container at the port have expired, but before it has been picked up by the consignee for inland transport.
- **Who levies it:** The shipping line or port authority.
- **Purpose:** To compensate the port/shipping line for the use of their terminal space and equipment, and to encourage prompt cargo clearance.

### Detention

- **What it is:** A charge for the extended use of a shipping container while it is outside the port or terminal, in the possession of the consignee or their haulier.
- **When it applies:** After the free days for returning the empty container to the designated depot have expired, following its pickup from the port.
- **Who levies it:** The shipping line.
- **Purpose:** To compensate the shipping line for the loss of use of their container, which is now off-hire and not generating revenue.

### Per Diem

- **What it is:** A broader term that can encompass both Demurrage and Detention, but is often specifically used for charges related to the extended use of equipment (containers, chassis) when it is off the shipping line's property. It's essentially a daily rental fee.
- **When it applies:** Similar to detention, when equipment is held beyond the free time, but can also apply to other equipment like chassis. Sometimes, it's used by third-party equipment providers.
- **Who levies it:** Shipping lines, container leasing companies, or intermodal equipment providers.
- **Purpose:** To compensate for the daily rental of equipment.

While Demurrage and Detention are specific types of charges, Per Diem is the overarching concept of "by the day" charges for equipment use. In many contexts, particularly when discussing the time a container is with the consignee, Per Diem and Detention are used almost synonymously. Ocean Cargo's [customs compliance](https://oceancargo.co.uk/services/customs-compliance/) team works diligently to minimise the risk of these charges by ensuring smooth and timely clearance processes.

## Factors Influencing Per Diem Charges and Free Days

The number of free days offered and the subsequent Per Diem rates are not universal. Several factors influence these critical elements:

- **Shipping Line:** Each shipping line has its own policies and rate structures. Some may offer more generous free days than others.
- **Port of Destination:** Busy ports with high traffic volumes may offer fewer free days to encourage faster turnaround and prevent congestion. For example, shipping [sea freight to the USA](https://oceancargo.co.uk/countries/usa/sea-freight-usa) might have different free day allowances compared to [sea freight to Canada](https://oceancargo.co.uk/countries/canada/sea-freight-canada).
- **Type of Cargo:** Certain types of cargo, such as hazardous materials or refrigerated goods (reefers), may have different free day allowances due to their specific handling requirements.
- **Container Type:** Standard dry containers typically have different free day allowances than specialised equipment like open-top or flat-rack containers.
- **Volume and Relationship:** Large volume shippers or those with long-standing relationships with a particular carrier may be able to negotiate more favourable terms, including extended free days or reduced Per Diem rates.
- **Incoterms:** The chosen Incoterm (International Commercial Term) for a shipment dictates where the responsibility for costs and risks transfers from seller to buyer. This directly impacts who is liable for Per Diem charges. For instance, under DDP (Delivered Duty Paid), the seller is responsible for all costs until the goods are delivered to the buyer's premises, including potential Per Diem.

Ocean Cargo advises clients to always clarify the specific free days and Per Diem rates with their freight forwarder before shipment. This proactive approach helps in budgeting accurately and planning logistics effectively to avoid unforeseen expenses.

## Strategies to Mitigate Per Diem Charges

Minimising Per Diem charges is a key objective for any business involved in international trade. Here are effective strategies that Ocean Cargo employs and recommends to its clients:

1. **Accurate Documentation and Pre-Clearance:** Ensure all shipping documents (Bill of Lading, commercial invoice, packing list, customs declarations) are accurate and submitted well in advance. Pre-clearing customs before the vessel's arrival can significantly reduce delays at the port.
2. **Efficient Inland Transportation Planning:** Arrange for prompt pickup of containers from the port and timely return of empties to the designated depot. This requires reliable haulage partners and clear communication. Ocean Cargo's extensive network ensures seamless [road freight](https://oceancargo.co.uk/services/road-freight/) solutions.
3. **Optimise Unloading Processes:** Streamline your warehouse operations to unload containers as quickly as possible. This might involve scheduling sufficient labour, having the right equipment, and ensuring easy access to the unloading bay.
4. **Negotiate Free Days:** For regular or high-volume shipments, discuss the possibility of extended free days with your freight forwarder. Ocean Cargo, leveraging its industry relationships, can often negotiate better terms on behalf of its clients.
5. **Monitor Container Movements:** Keep a close eye on the status of your containers. Track vessel arrival times, container availability, and return deadlines. Proactive monitoring allows for quick adjustments if delays occur.
6. **Understand Incoterms:** Clearly define Incoterms with your supplier or buyer to establish who is responsible for which costs and at what stage. This prevents disputes and ensures accountability for Per Diem charges.
7. **Consider Transloading:** If your cargo is destined for an inland location and you anticipate delays in returning the container, consider transloading the goods from the ocean container into a domestic trailer at or near the port. This allows the ocean container to be returned promptly, avoiding Per Diem.
8. **Utilise Air Freight for Urgent Shipments:** While typically more expensive upfront, [air freight](https://oceancargo.co.uk/services/air-freight/) can eliminate the risk of container-related Per Diem charges for time-sensitive goods, as cargo is usually palletised and not subject to container detention.

By implementing these strategies, businesses can significantly reduce their exposure to Per Diem charges, leading to more predictable and cost-effective international shipping. Ocean Cargo acts as a strategic partner, providing the expertise and support needed to navigate these challenges successfully, whether you're shipping [excavators and diggers to the UAE](https://oceancargo.co.uk/countries/uae/excavators-diggers-uae) or [wind turbine components to Australia](https://oceancargo.co.uk/countries/australia/wind-turbine-components-blades-nacelles-tower-sections-australia).

### Frequently Asked Questions About Per Diem

#### Who is responsible for paying Per Diem charges?

The responsibility for Per Diem charges typically falls to the consignee (the receiver of the goods) or the party responsible for returning the empty container to the shipping line's designated depot. This is often determined by the Incoterms agreed upon for the shipment.

#### How much are typical Per Diem charges?

Per Diem rates vary significantly based on the shipping line, port, container type, and current market conditions. They can range from £20 to £100 or more per day per container. It's crucial to confirm the specific rates with your freight forwarder or shipping line before your shipment.

#### Can Per Diem charges be waived or reduced?

While not guaranteed, it is sometimes possible to negotiate a reduction or waiver of Per Diem charges, especially if the delays were due to circumstances beyond your control (e.g., port strikes, severe weather) or if you are a high-volume shipper. A strong relationship with your freight forwarder, like Ocean Cargo, can be beneficial in these negotiations.

#### Do Per Diem charges apply to LCL (Less than Container Load) shipments?

Generally, Per Diem charges are associated with [FCL](https://oceancargo.co.uk/services/sea-freight "FCL") (Full Container Load) shipments where a single consignee is responsible for the entire container. For [LCL](https://oceancargo.co.uk/services/sea-freight "LCL") shipments, where cargo from multiple shippers is consolidated, the freight forwarder typically manages the container and its return, and any associated charges are usually factored into the overall [LCL](https://oceancargo.co.uk/services/sea-freight "LCL") rate or handled differently.

### Ready to simplify your global logistics?

Get advice and a quote for your next shipment. Contact the Ocean Cargo team to start shipping.

[Freight Quote](https://oceancargo.co.uk/contact-us)

## Schema

```json
{ "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://oceancargo.co.uk" }, { "@type": "ListItem", "position": 2, "name": "Shipping Terms", "item": "https://oceancargo.co.uk/shipping-terms" }, { "@type": "ListItem", "position": 3, "name": "Perdiem", "item": "https://oceancargo.co.uk/shipping-terms/perdiem" } ] }
```

```json
{ "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "Who is responsible for paying Per Diem charges?", "acceptedAnswer": { "@type": "Answer", "text": "The responsibility for Per Diem charges typically falls to the consignee (the receiver of the goods) or the party responsible for returning the empty container to the shipping line's designated depot. This is often determined by the Incoterms agreed upon for the shipment." } }, { "@type": "Question", "name": "How much are typical Per Diem charges?", "acceptedAnswer": { "@type": "Answer", "text": "Per Diem rates vary significantly based on the shipping line, port, container type, and current market conditions. They can range from £20 to £100 or more per day per container. It's crucial to confirm the specific rates with your freight forwarder or shipping line before your shipment." } }, { "@type": "Question", "name": "Can Per Diem charges be waived or reduced?", "acceptedAnswer": { "@type": "Answer", "text": "While not guaranteed, it is sometimes possible to negotiate a reduction or waiver of Per Diem charges, especially if the delays were due to circumstances beyond your control (e.g., port strikes, severe weather) or if you are a high-volume shipper. A strong relationship with your freight forwarder, like Ocean Cargo, can be beneficial in these negotiations." } }, { "@type": "Question", "name": "Do Per Diem charges apply to LCL (Less than Container Load) shipments?", "acceptedAnswer": { "@type": "Answer", "text": "Generally, Per Diem charges are associated with FCL (Full Container Load) shipments where a single consignee is responsible for the entire container. For LCL shipments, where cargo from multiple shippers is consolidated, the freight forwarder typically manages the container and its return, and any associated charges are usually factored into the overall LCL rate or handled differently." } } ] }
```

```json
{ "@context": "https://schema.org", "@type": "Article", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://oceancargo.co.uk/shipping-terms/perdiem" }, "headline": "Perdiem", "description": "By the Day", "image": { "@type": "ImageObject", "url": "https://oceancargo.co.uk/images/GenPics/sea-freight3.webp" }, "publisher": { "@type": "Organization", "name": "Ocean Cargo", "logo": { "@type": "ImageObject", "url": "https://oceancargo.co.uk/images/300_ocean-logo.png" } }, "author": { "@type": "Person", "name": "Ocean Cargo", "url": "https://oceancargo.co.uk/shipping-terms/perdiem" }, "datePublished": "2025-09-01T13:05:01+00:00", "dateCreated": "2025-06-17T08:28:29+00:00", "dateModified": "2025-08-24T10:13:46+00:00" }
```

```json
{ "@context": "https://schema.org", "@type": [ "LocalBusiness" ], "@id": "https://oceancargo.co.uk/shipping-terms/perdiem#localbusiness3", "name": "Ocean Cargo", "image": "https://oceancargo.co.uk/images/300_ocean-logo.png", "url": "https://oceancargo.co.uk/shipping-terms/perdiem", "address": { "@type": "PostalAddress", "addressCountry": "UK", "addressLocality": "Oldham", "postalCode": "OL8 2PF" }, "openingHoursSpecification": { "@type": "OpeningHoursSpecification", "dayOfWeek": [ "Monday", "Tuesday", "Wednesday", "Thursday", "Friday", "Saturday", "Sunday" ], "opens": "00:00", "closes": "23:59" }, "aggregateRating": { "@type": "AggregateRating", "ratingValue": "4.8", "reviewCount": "500", "worstRating": 0, "bestRating": 5 } }
```