Demurrage vs. Detention: Understanding the Difference

Demurrage and detention are common charges in ocean shipping, but they apply at different points in a container’s journey.

Demurrage generally applies when a loaded container remains at the port or terminal beyond the allotted free time. Detention generally applies after the container has been picked up from the terminal and is not returned to the carrier within the allotted free time.

Simply put, demurrage occurs while the container is at the terminal. Detention occurs after it leaves.

These charges can result from customs holds, incomplete documentation, port congestion, trucking delays, warehouse scheduling issues, delayed unloading or problems returning an empty container. Free time allowances and daily rates vary depending on the carrier, terminal, equipment type, location and agreed terms.

Although some delays are outside a shipper’s control, preparation can make a difference. Confirm free time allowances in advance, prepare documents before the shipment arrives, arrange trucking and delivery appointments early, monitor cargo availability and verify the empty container return location and deadline.

Falcon Maritime & Aviation works closely with customers, carriers, terminals, truckers and warehouses to monitor important shipment milestones and address potential delays as early as possible. Clear communication and careful coordination can help keep cargo moving and limit unnecessary costs.