What Is Container Per Diem?

Container Per Diem Definition

Container Per Diem is a daily fee charged by ocean carriers, railroads, or equipment providers when a shipping container is kept beyond the agreed free time.

Container Per Diem Meaning

Container Per Diem serves as compensation to carriers for the use of their containers beyond the allowed period. It encourages faster container return to avoid delays and reduce congestion in ports, yards, and warehouses. In 3PL logistics and warehousing, managing container per diem charges helps control costs and maintain efficient supply chain operations.

Container Per Diem charges begin once the free time for using the container expires, and they continue daily until the container is returned. By working with an experienced 3PL partner, you can better track container deadlines and avoid unnecessary charges. Staying on top of per diem fees helps your business reduce extra costs and avoid supply chain delays. Proper management of per diem also ensures smooth operations and keeps your freight moving efficiently.

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Container Per Diem is important because it prevents equipment shortages and supply chain disruptions by ensuring containers are returned quickly for reuse. For 3PLs and shippers, tracking per diem fees is crucial to avoiding costly penalties that can quickly add up and impact overall profitability.

For example, if a 3PL provider fails to return a container on time after unloading at their warehouse, the business could face daily per diem charges until the container is returned, increasing transportation expenses.

FAQs

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