Understanding Demurrage and Detention

What Is Demurrage?

Demurrage is a fee charged by the shipping line or terminal when a container sits at the port terminal beyond the allowed free time (typically 4-7 days). It is essentially a storage charge for containers that have not been picked up from the terminal. Demurrage charges can range from $75 to $300+ per day depending on the shipping line and container type.

What Is Detention?

Detention is a fee charged by the shipping line when a container is kept outside the terminal (at your warehouse or transload facility) beyond the allowed free time (typically 2-4 days). It is a charge for keeping the container itself too long. Detention charges are similar to demurrage — $75 to $300+ per day.

How to Avoid Demurrage and Detention

The key to avoiding these charges is speed and coordination:

• Arrange drayage pickup before the container is released from customs.
• Use a warehouse near the port to minimize drayage transit time.
• Transload containers quickly and return empties promptly.
• Work with a drayage provider that has TWIC-certified drivers and terminal access.
• Monitor container free time and terminal appointments carefully.
• Use an asset-based provider that controls its own chassis and drivers.

The Cost of Inaction

Demurrage and detention charges can add up quickly. A single container that sits at the port for an extra week can incur $500-$2,000+ in charges. For importers moving multiple containers per month, these fees can become a significant cost center. Working with a coordinated drayage and transloading provider is the most effective way to minimize these costs.