Detention and Demurrage
Per-diem charges for exceeding the free time period for container use at the terminal (demurrage) or at the importer's premises (detention).
In detail
Demurrage and detention are the most common unexpected costs in ocean freight. Demurrage: charged by the shipping line when a container remains at the terminal beyond the free days (typically 4–7 days). Rates: $50–150 per TEU per day. Detention: charged when a container is off terminal at the importer's premises beyond free days (typically 7–14 days). Rates: $30–80 per TEU per day. Causes: slow customs clearance (documentation issues, customs queries, KTS), slow unloading at the warehouse, public holidays. Prevention: submit customs documents in advance (ideally before vessel arrival); have a warehouse ready; negotiate extended free days with the shipping line at booking time, especially for high-volume shipments; ensure all permits and certificates are obtained before arrival. If detention/demurrage are incurred, dispute them promptly with the forwarder — there is often room to negotiate reduction, especially for first-time occurrences or delays caused by the carrier.
Examples
- →Container at St Petersburg port for 12 days; free days = 5; demurrage = 7 × $100 = $700 added to shipment cost
Related terms
FCL (Full Container Load)
A shipment occupying an entire ocean container — 20DC, 40DC, or 40HC — booked and sealed by one shipper.
ETD and ETA
ETD (Estimated Time of Departure) — planned vessel departure date; ETA (Estimated Time of Arrival) — planned arrival date at destination port.
Bill of Lading (B/L)
The primary ocean freight document serving as a receipt of shipment, contract of carriage, and document of title.