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Demurrage and Detention
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The charges are avoidable. They are also unforgiving once they start.
| Demurrage | Detention | |
|---|---|---|
| Where | Inside the terminal | Outside, with you |
| Trigger | Container not collected in time | Empty not returned in time |
| Clock starts | On discharge, after free time | On collection, after free time |
| Typical cause | Documents or customs delay | Slow unloading or trucking |
What is the difference between demurrage and detention?
Location is the simplest way to keep them straight.
Demurrage applies while the container is still in the terminal. You were given a number of free days after discharge to collect it, and once those run out the terminal or carrier charges for each additional day it occupies space.
Detention applies once the container has left the terminal in your possession. You were given free days to unload and return the empty, and once those run out you are charged for keeping the carrier's equipment.
They are separate clocks and you can incur both on the same shipment: held up collecting the box, then slow returning it.
A related term, demurrage in the port or vessel sense, also appears in charter contracts meaning the ship being delayed beyond agreed laytime. In container shipping the meaning above is the one you will meet.
What is free time?
Free time is the allowance of days included in your freight arrangement before charges begin. It varies by carrier, port, container type and contract, and it is shorter than most first-time importers expect. Special equipment such as refrigerated containers usually has much shorter free time and much higher daily rates.
Two things worth knowing. Free time is negotiable, particularly if you ship regularly or booked through a forwarder with volume. And the clock usually runs on calendar days, so a weekend or a public holiday can consume your free time while nothing is even open.
Why do these charges happen?
In practice, a short list causes most of it.
Documents not ready. The most common cause. No original bill of lading, or a document mismatch, and you cannot take the cargo while the clock runs.
Customs delay. An incorrect classification, a missing permit, or an examination. Our guide on the HS code covers the classification side.
Payment not cleared. Freight or duty unpaid means no release.
No plan at destination. No truck booked, no warehouse slot, or no one available to unload, so the box sits or the empty goes back late.
Port congestion. Sometimes genuinely outside your control, which is a reason to build buffer into the schedule rather than assume the best case.
How do I avoid them?
Prepare the documents before the vessel arrives, not after. Confirm with the supplier exactly how the bill of lading will be released and, where the payment terms permit, use a sea waybill or telex release so paper cannot become the bottleneck.
Get customs clearance moving in advance, with a broker if the goods are of any value, so entry is filed and any issue surfaces before the free days are burning. Book the truck and the unloading slot before arrival, and know your actual free time for that specific booking rather than assuming a standard.
If you ship regularly, negotiate longer free time as part of the freight rate. A good freight forwarder will do this and will also warn you when a clock is about to start, which is much of what you are paying them for.
Frequently asked questions
What is the difference between demurrage and detention?
Demurrage is charged while the container is still inside the terminal past its free time. Detention is charged once you have taken the container out and have not returned the empty in time. Different locations, separate clocks, and you can incur both on one shipment.
How much do demurrage and detention cost?
They are charged per container per day and typically escalate the longer the delay runs, with refrigerated and special equipment considerably higher. Rates vary by carrier and port, so ask for the tariff for your specific booking rather than assuming.
Does free time include weekends?
Usually the clock runs on calendar days, so weekends and public holidays can consume free time even when nothing is operating. Confirm the terms for your booking, because this catches people out.
Who pays demurrage and detention?
Normally the party responsible for the cargo at that stage, which for most import terms is the buyer. Your Incoterms determine where responsibility sits, so check them before assuming the seller carries it.
Can I negotiate more free time?
Yes, particularly with regular volume or through a forwarder with carrier relationships. It is usually easier to negotiate free time as part of the freight rate than to get charges waived afterwards.
Related terms
See the full trade terms glossary, or read about the bill of lading, whose late arrival is the most common trigger for demurrage.
This guide is general information for overseas buyers, not shipping or legal advice. Free time, rates and terms vary by carrier, port and contract.
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