Demurrage
Last updated: June 14, 2026
- Demurrage = charges when a container stays at the TERMINAL beyond free time (typically 7-14 days import)
- Detention = charges for keeping the container OUTSIDE the terminal beyond free time — a separate charge
- Rates escalate daily; 2 weeks of demurrage can exceed the original ocean freight cost
Demurrage is the charge levied by the shipping line when a container stays at the terminal beyond the free time (typically 7-14 days for import, 5-7 days for export). It is separate from detention — charges for keeping the container outside the terminal beyond free time. Both are daily charges that escalate the longer the delay persists.
Chinese: 滞港费 / 滞箱费 (Zhì gǎng fèi / Zhì xiāng fèi)
Demurrage vs. Detention — The Critical Distinction
Demurrage: container sits at the TERMINAL past free days. Detention: container sits at the CONSIGNEE'S PREMISES past free days. In import: demurrage clock starts when the container is discharged; detention clock starts when you pick it up. In export: demurrage starts when you return the full container to the terminal early and it sits before vessel loading; detention starts when you keep the empty container at your premises too long before returning it full. Both escalate per day. Many importers get shocked by bills because they confused the two.
Practical Example
An importer in Hamburg receives a 40ft container from Qingdao. The carrier contract provides 10 free days at the terminal. Due to a documentation error — the importer forgot to provide the EORI number for customs clearance — the container sits at the terminal for 18 days (8 days over free time). Hamburg demurrage rate: $150/day for a 40ft. Total demurrage: $1,200. Additionally, the importer needs 14 days at their warehouse to unload (4 days over the 10-day detention free time). Detention: $80/day = $320. Total penalty: $1,520 — on a shipment where ocean freight was $2,200. This could have been avoided by preparing customs documents before vessel arrival.
Related Terms
- Transit Time — knowing this helps plan documentation timing
- CY-CY — container yard terms where demurrage applies
- B/L (Bill of Lading) — needed for customs clearance to avoid demurrage
Frequently Asked Questions
What is the difference between demurrage and detention?
Demurrage = terminal storage charges. Detention = charges for keeping the container outside the terminal too long. Both escalate daily. In import: demurrage starts at discharge; detention starts at pickup. Many importers confuse the two — check your carrier contract. See our logistics FAQ for more.
How much does demurrage cost?
Typical ranges: $50-150/day for 20ft, $100-300/day for 40ft. Rates escalate — first days at lower rate, then sharply higher. DG and special equipment rates are higher. At congested ports, 2 weeks of demurrage can exceed the original ocean freight cost. Always budget for this.
How can I avoid demurrage charges?
(1) Know your free time before shipment arrives. (2) Prepare customs documents in advance for pre-clearance. (3) Book trucking before container arrival. (4) Use a forwarder with port relationships for extended free time. (5) For congested ports, use a bonded warehouse to clear the terminal faster. Contact us for proactive demurrage management.
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