Learn/Pricing & Charges

Demurrage vs Detention: The Difference (and How to Avoid Both)

Demurrage is charged when a container stays inside the terminal beyond its free time; detention is charged when the container is kept outside the terminal (at the consignee's premises or in transit) beyond the equipment free time. Together they are 'D&D' — among the most contested charges in ocean freight.

Where the line falls

On an import: the container discharges and free time starts. Every day it remains in the terminal past that allowance accrues demurrage (the box is occupying port real estate). Once gated out, a second clock runs: every day the consignee keeps the carrier's container for unpacking beyond equipment free time accrues detention (they are borrowing the line's asset). Free time is typically 4–7 calendar days each, but it is carrier-, port-, and contract-specific, and D&D tariffs escalate steeply in tiers.

The charges compound with each other and with storage: a container stuck awaiting documents can rack up terminal demurrage while the clock toward detention hasn't even started. On disputed cargo, D&D routinely exceeds the ocean freight itself.

Why D&D happens — and the desk-level fixes

Most D&D is not caused by trucking shortages; it is caused by paperwork latency. The classic chain: originals arrive late (courier), or the SI was missed so the telex is delayed, or duty payment waits on an invoice query — and the container sits through its free time while emails go back and forth. The fixes are unglamorous and effective: choose release mechanics that match payment terms (telex or seaway instead of couriered originals), file customs pre-arrival where the regime allows, book delivery slots against free-time expiry rather than vessel arrival, and track every container's free-time clock explicitly instead of discovering it on the carrier's invoice.

Frequently Asked Questions

Who pays demurrage and detention?

Contractually it follows the transport terms — usually the merchant (shipper or consignee per the B/L terms). Practically, the party whose delay caused it ends up negotiating: consignees for slow unpacking, shippers/forwarders for document delays.

How much do demurrage and detention cost?

Tariffs are carrier- and port-specific and escalate in tiers — commonly starting around $75–150 per container per day and rising past $300+/day in later tiers. On a held container, two weeks of combined D&D can exceed the ocean freight.

Can demurrage be negotiated or waived?

Extended free time is negotiable in service contracts before the shipment, and carriers do issue goodwill waivers for documented carrier-side failures. After the fact, without leverage or documentation, expect to pay most of it.

Is demurrage the same as port storage?

No — storage is charged by the terminal for the space, demurrage by the carrier for the container inside the terminal past free time. On some ports/contracts both apply simultaneously, which surprises importers on their first held box.

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Last updated: July 2026 | v1.0