A container that arrives on time but sits at the port for a week can cost more than the ocean freight itself. Demurrage and detention are the two charges that do it, and unlike most shipping costs, these are almost entirely within your control.
The difference in one sentence
- Demurrage is charged when your loaded container sits inside the terminal past its free time.
- Detention is charged when your container sits outside the terminal — at your warehouse, on a chassis, in a yard — past its free time.
Both are charged per container, per day, and the daily rate typically escalates the longer you hold the box.
How the clock actually works
| Stage | Who charges | Typical free time | What stops the clock |
|---|---|---|---|
| Container discharged, waiting at terminal | Terminal / carrier (demurrage) | 3–7 calendar days | Container leaves the gate |
| Container picked up, not yet returned empty | Carrier (detention) | 3–7 calendar days | Empty container returned to depot |
Two things surprise first-time importers:
- Free time is counted in calendar days, not working days. A public holiday does not pause it.
- The two clocks are separate. You can clear demurrage and immediately start accruing detention, because the container is now in your hands but not yet returned.
Why the charges escalate
Terminals price demurrage to force movement. A typical structure might be free for the first five days, then a moderate rate for days six to ten, then a much higher rate beyond that. The intent is not to earn revenue — it is to stop the yard filling up.
That is why a container stuck for three weeks can generate a bill larger than the freight.
The eight causes, and the fix for each
| Cause | Fix |
|---|---|
| Documents arrive late, so entry cannot be filed | Get the bill of lading, invoice and packing list to your broker before the vessel sails |
| ISF filed late (US-bound ocean cargo) | File at least 72 hours before loading, not on arrival |
| Duty not paid promptly | Pre-fund the broker or set up an ACH debit so duty clears same-day |
| Customs examination | Keep documents consistent; you cannot eliminate selection but you can reduce it |
| No delivery appointment booked | Book drayage at the same time as the ocean leg, not after arrival |
| Chassis shortage at a busy inland hub | Reserve chassis in advance, especially month-end |
| Warehouse not ready to receive | Confirm your receiving date before the vessel berths |
| Empty container not returned | Schedule the empty return on the same day you devan the container |
Notice the pattern: almost every cause is a paperwork or scheduling failure, not a transport failure.
Practical rules that prevent most charges
- Get the arrival notice to the right person the day it is issued. Not the day you get around to reading email.
- Have the customs entry prepared before arrival, so the only step left is paying duty.
- Book the drayage in advance. The truck is the single most common bottleneck.
- Plan to devan and return the empty within 48 hours of pickup.
- Know your free time in writing before you book. Ask for it in the quotation.
- Track the vessel, not the ETA on your order form. Vessels arrive early as often as they arrive late, and free time starts on discharge, not on your schedule.
- If a problem is coming, tell your forwarder immediately. Carriers will sometimes extend free time for a genuine, well-documented operational issue. They will not do it retroactively.
What to do if you are already accruing charges
- Ask for the free time extension now, in writing, with a reason. Do it before the free time expires, not after.
- Prioritise the return. Detention is usually cheaper to stop than demurrage, because you control the container.
- Check the invoice line by line. Free time terms vary by carrier and by contract, and errors are common.
- Consider a merchant haulage arrangement if you regularly face terminal delays — it is not always cheaper, but it changes who carries the risk.
Frequently asked questions
What is the difference between demurrage and detention? Demurrage applies while the container is inside the terminal. Detention applies while it is outside. Both are charged after free time expires.
How many free days do I get? Typically three to seven calendar days for each, but it varies by carrier, port and contract. Always confirm it in writing before booking.
Who pays demurrage and detention? Whoever is named as the consignee or the party holding the container. Under FOB and CIF terms that is normally the buyer. See Incoterms 2020 explained.
Can demurrage charges be waived? Sometimes. Carriers may grant an extension for documented operational issues if you ask before the free time runs out. Retroactive waivers are rare.
Does this apply to LCL shipments? LCL works differently — you are charged storage at the consolidation warehouse rather than demurrage on a container, but the principle and the fix are the same: get your documents in early and collect promptly.
Plan your shipment so the clock never starts
We build a document checklist and a delivery timeline into every booking, so arrival day is a formality rather than a scramble.
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