Demurrage is what a shipping line charges when a container stays at the port or terminal beyond the free days allowed. Storage charges apply when cargo stays too long in a port or depot. Both grow daily, and both usually trace back to a delay somewhere in the chain.
Why they happen
- Documents arrive late or are wrong, so the customs entry cannot be lodged
- Duty payment is delayed
- Regulated goods lack the right approvals
- Transport is not booked for the day cargo is released
- Nobody is tracking the free-day countdown
Seven habits that prevent them
- Get documents in before the vessel arrives. Ask your supplier for drafts early and fix errors while it is still easy.
- Confirm permits at the start. Do not discover a missing approval on arrival.
- Pre-lodge where possible. Have the entry ready so clearance starts the day cargo is discharged.
- Keep funds ready for duties. Payment delays are a common, avoidable holdup.
- Book transport in advance. Know where the cargo goes and who receives it.
- Know your free days. Ask the agent for the exact deadline on every container.
- Use one coordinator. When one team handles clearing, transport and storage, nothing waits for someone else to move.
Free days and rates vary by shipping line, terminal and cargo type. Check the terms in your shipping documents, or ask your agent.
Frequently asked questions
What is the difference between demurrage and detention?
Demurrage is charged for time a container spends at the port or terminal. Detention is charged for time the container is held outside the terminal, for example at your premises, beyond the allowed period. Terms vary by shipping line.
Can demurrage be negotiated?
Sometimes, particularly when delays were outside your control. An agent who tracks free days and keeps records of delays is in the best position to make that case.