Demurrage

Illustration for Demurrage, Pricing & Surcharges

A penalty charge when a full container remains at the port or terminal beyond the agreed free time after arrival. Distinct from detention, which applies to equipment held outside the port.

In depth

Demurrage is the charge for leaving a container inside the terminal beyond the free time allowed after discharge. It is the terminal and carrier's way of keeping boxes moving and yard space available. Free time is commonly a handful of days and is negotiable at booking, especially on contract rates. Demurrage almost always escalates in tiers, so a container sitting for two weeks costs far more than twice a container sitting for one. It is regularly confused with detention, and the distinction is location: demurrage is the container still being in the terminal, detention is the container outside the terminal and not yet returned.

Key points

  • Charged for containers left in the terminal past free time
  • Rates escalate in tiers the longer the box stays
  • Free time can often be negotiated at booking
  • Demurrage is inside the terminal; detention is outside it

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