Demurrage & Detention
Demurrage is charged when a container sits too long inside the terminal; detention is charged when the empty equipment is kept outside it for too long.
Definition
Both charges exist to keep containers moving. Carriers grant a number of free days, after which a daily rate applies, and that rate often escalates in tiers the longer the container is held.
Demurrage covers the container occupying space in the terminal. Detention covers the carrier being unable to use the equipment because it is still in your possession, typically at your warehouse.
Example
Seven free days followed by a rate of 80 USD per day: clearing on day 10 costs 240 USD in demurrage before the container has even left the port.
When you will come across it
- Planning clearance and unpacking schedules around free day allowances
- Working out why a shipment that was cheap to move became expensive overall
- Negotiating more free days with a carrier on a recurring lane
Frequently asked questions
What is the difference between demurrage and detention?
Demurrage applies while the container is inside the terminal. Detention applies while the container, usually empty, is outside the terminal and still in your possession.
How many free days do carriers usually give?
It varies widely by carrier, port and contract, and it often differs for demurrage and detention. Confirm the allowance at booking rather than assuming a standard number.
Can these charges be waived?
Sometimes, particularly where the delay was caused by the carrier or by customs inspection rather than by the consignee. Requests are far more successful before the charges accrue.