demurrage clerk Interview Questions and Answers

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Demurrage Clerk Interview Questions and Answers

  1. What is demurrage?

    • Answer: Demurrage is a charge levied by a carrier against a shipper for the retention of a carrier's rolling stock (such as a railcar or container) beyond an agreed-upon period of time.

  2. What is detention?

    • Answer: Detention is a charge levied against a consignee (receiver of goods) for failure to unload cargo from a carrier's equipment within a specified time frame.

  3. What is the difference between demurrage and detention?

    • Answer: Demurrage applies to the shipper's delay in returning the carrier's equipment, while detention applies to the consignee's delay in unloading it.

  4. How are demurrage and detention charges calculated?

    • Answer: Calculation varies by carrier and contract, but generally involves a daily or per-day rate multiplied by the number of days the equipment is held beyond the free time.

  5. What documents are crucial for calculating demurrage and detention?

    • Answer: Bill of Lading (BOL), shipping instructions, delivery receipts, equipment release notices, and the carrier's demurrage/detention tariff.

  6. Explain the process of calculating demurrage charges for a container.

    • Answer: Identify the free time allowed. Determine the actual time the container was held. Calculate the difference (days beyond free time). Multiply the difference by the per-day demurrage rate specified in the contract or tariff.

  7. What are some common reasons for demurrage/detention?

    • Answer: Port congestion, customs delays, equipment malfunctions, insufficient labor for unloading, scheduling conflicts, and inaccurate documentation.

  8. How do you handle disputes regarding demurrage/detention charges?

    • Answer: Review all documentation carefully, compare it to the contract and tariff. Contact the relevant parties (shipper, consignee, carrier) to discuss the discrepancy. Escalate to management if necessary. In some cases, arbitration might be required.

  9. What software or systems are commonly used to manage demurrage and detention?

    • Answer: Transportation Management Systems (TMS), Enterprise Resource Planning (ERP) systems, and specialized demurrage/detention management software.

  10. How do you ensure accurate and timely demurrage/detention invoicing?

    • Answer: Maintain meticulous records, utilize automated systems where possible, follow established procedures, and conduct regular audits of calculations and invoicing.

  11. What are your skills in data entry and analysis?

    • Answer: [Describe your skills, including proficiency with specific software and your experience with large datasets.]

  12. How do you handle high-volume workloads and tight deadlines?

    • Answer: [Describe your organizational skills, time management strategies, and ability to prioritize tasks under pressure.]

  13. How familiar are you with Incoterms?

    • Answer: [Explain your understanding of Incoterms and their relevance to demurrage/detention responsibilities. Mention specific Incoterms if familiar.]

  14. Describe your experience with customer service.

    • Answer: [Detail your experience handling customer inquiries, resolving complaints, and maintaining positive relationships with clients.]

  15. How do you maintain accuracy in your work, especially with large amounts of numerical data?

    • Answer: [Describe your methods for ensuring accuracy, such as double-checking calculations, using spreadsheets effectively, and implementing quality control measures.]

  16. What is your experience with different types of cargo?

    • Answer: [List the types of cargo you have worked with and highlight any special considerations for each.]

  17. How do you stay updated on changes in shipping regulations and industry best practices?

    • Answer: [Explain how you keep abreast of industry changes, such as through professional organizations, publications, or online resources.]

  18. Are you comfortable working independently and as part of a team?

    • Answer: [Describe your teamwork and independent work experiences and abilities.]

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