Moving the goods without losing the margin · Two clocks, two causes
Demurrage and detention
Demurrage is time inside the terminal; detention is time with the container outside. Both are avoidable with planning.
Key facts
| Demurrage | Charged when the container stays at the terminal beyond free time |
|---|---|
| Detention | Charged when the container stays with the importer beyond the allowed period |
| Free time | Set by the terminal, the carrier and the contract; often counted in calendar days |
| Common causes | Late documents, customs holds, missed appointments, warehouse capacity and slow unloading |
| Cost | Daily charges that escalate; a few days can exceed the freight line |
| Official source | The carrier's tariff, the terminal rules and the forwarder contract |
Two clocks, two causes
Demurrage is the terminal's charge for occupying space. Detention is the carrier's charge for keeping the equipment. They can run at the same time or one after the other, and the free time for each is set separately.
The causes are usually operational, not commercial: the entry was filed late, the terminal had no appointment, the warehouse was full, or the unloading took longer than planned. Each cause has an owner and a fix.
The routine that keeps containers moving
Before the vessel arrives: confirm the documents, file the entry, book the drayage appointment and confirm the warehouse slot. On arrival: release the container, move it, unload it and return the equipment within the free time.
If a delay is unavoidable, communicate early. Some terminals allow an extension or a move to a yard at a lower cost than the daily charge. Waiting until the invoice arrives turns a small fee into a large one.
Frequently asked questions
What is the difference between demurrage and detention?
Demurrage is time inside the terminal; detention is time the container is held outside, usually at the importer's site.
Who charges these fees?
Demurrage is usually charged by the terminal or carrier; detention by the carrier. The contract defines the terms.
Can the charges be waived?
Sometimes, when the delay is caused by the carrier or the terminal. Keep evidence and raise the dispute promptly.
How do I avoid them?
File the entry early, book the appointment, confirm the warehouse slot and return the equipment within free time.
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