Glossary

Drop Fee

Tags: Glossary

A charge applied for dropping off a container or cargo at a location designated by the consignee.

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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.

What is Drop Fee and how is it calculated?

A Drop Fee, also known as a Detention Drop Fee or Chassis Drop Fee, is a charge imposed by carriers or terminal operators for leaving a container or chassis at a designated location for an extended period beyond the allowed free time. The drop fee is applied when the container or chassis is not immediately picked up after it has been made available to the shipper or consignee.  

 

The fee is intended to incentivize timely container returns and to compensate the carrier or terminal operator for the additional use of their equipment or space. The drop fee is usually calculated based on the duration of the drop period and may vary depending on the specific terms and conditions set by the carrier or terminal operator. 

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