Watch: Demurrage vs Detention Explained

Video Transcript

“What is the difference between demurrage and detention in container shipping?

This 35-second guide explains where each charge generally applies and how shippers can reduce the risk of unexpected daily container fees.

Demurrage generally applies when a container remains inside a marine terminal beyond the applicable free time.

Detention generally applies when carrier equipment remains outside the terminal too long before being returned empty to the designated location.

Terminal storage may be charged separately, while ‘per diem’ is sometimes used for equipment detention.

Terminology, free-time calculation and daily rates vary by carrier, terminal, tariff, contract and jurisdiction.

To reduce your exposure, prepare customs and carrier-release documents early, track container discharge and cargo availability, arrange drayage and pickup appointments in advance, ensure the warehouse is ready to unload, confirm the empty-return depot and deadline, and request and document additional free time before booking when needed.

Vessel arrival does not necessarily mean the container is available for collection.

Always confirm the applicable free-time start and end points for your shipment.”