Demurrage charges can arise when shipping-line equipment remains at a port or terminal beyond the free time allowed under the booking or tariff. Detention normally concerns the period after the container has left the terminal but has not been returned to the nominated location. The terminology and charging structure can vary, so the carrier’s current terms govern the shipment.
These charges are separate from the road-haulage price. A haulier can collect and deliver efficiently yet the shipment may still incur demurrage if customs clearance, release or terminal collection is delayed.
Demurrage and detention compared
| Charge | Where the container usually is | Typical trigger | What to verify |
|---|---|---|---|
| Demurrage | Inside a port or terminal | Allowed terminal free time expires before collection or onward action | Start date, free days, tariff and release status |
| Detention | Outside the terminal | Shipping-line equipment is not returned within the allowed period | Empty return location, deadline, opening and acceptance |
Some tariffs combine the periods or use the words differently. Read the booking confirmation and current carrier tariff rather than relying on a generic definition.
What is free time?
Free time is the allowed period before the relevant charge starts. There is no universal number of free days. It can vary by shipping line, port, trade lane, container type, customer contract and current operating conditions. Weekends and bank holidays may be treated differently under different terms.
Ask for the exact last free day and the basis used to calculate it. A note saying “five free days” is incomplete unless you know when counting begins and which days count.
Common causes of demurrage
- Customs clearance or another border process is incomplete.
- The shipping line has not released the container.
- Documents, payment or any required release documentation remain outstanding.
- A terminal slot or suitable haulier is not available in time.
- The receiving site cannot accept the delivery.
- A hold, examination or port disruption delays collection.
Common causes of detention
- The consignee takes longer than planned to unload.
- The empty return depot changes or will not accept the box.
- Return opening times or booking rules are missed.
- The container is damaged or needs cleaning before restitution.
- Weekend, holiday or vehicle availability disrupts the return plan.
A simple timeline example
Suppose an import container becomes available on Monday and its terminal free time ends on Thursday. If release is not completed until Friday, demurrage may already have started before a haulier can collect it. After delivery, a separate detention period may apply until the empty container is accepted back at the nominated depot. This example explains the sequence only; it is not a promise about free days, rates or liability.
Who pays demurrage charges?
That depends on the carrier contract, bill of lading, booking, Incoterms and agreements between the seller, buyer, forwarder and other parties. A shipping line may invoice its contractual customer even where another party caused the delay. Recovering that cost is a separate contractual question.
Do not assume an Incoterm alone answers every local charge. Review the sale and transport contracts and obtain professional advice where liability is disputed.
How businesses reduce exposure
- Prepare customs and commodity data before arrival.
- Track vessel arrival, discharge, availability and holds.
- Confirm release references and the last free day in writing.
- Book container transport early with realistic delivery instructions.
- Check the receiving site can unload within the agreed arrangement.
- Confirm the empty return depot, slot rules and deadline before delivery.
- Escalate changes quickly and keep a written event timeline.
The GOV.UK importing goods guidance provides the official process overview. A freight forwarder can help coordinate bookings and documents, but charges and responsibilities still need to be checked against the actual contract.
Frequently asked questions about Demurrage Charges
What are demurrage charges?
They are charges commonly applied when a container or other shipping-line equipment remains at a port or terminal beyond the free time allowed by the applicable booking or tariff.
What is the difference between demurrage and detention?
Demurrage usually concerns time inside the port or terminal. Detention usually concerns shipping-line equipment kept outside the terminal before return. Carrier terminology can vary.
How many free days do I get?
There is no universal allowance. Free time depends on the carrier, port, trade lane, container type and customer terms. Confirm the start point and last free day in writing.
Are demurrage charges included in a haulage quote?
Usually they are separate, but the quote terms decide. Also check waiting, failed collection, storage, redelivery and empty return charges.
Who is responsible for paying demurrage?
Responsibility depends on the carrier and commercial contracts. The party invoiced by the line may not be the party that ultimately bears the cost under another agreement.
Can demurrage always be avoided?
No. Holds and disruption can occur, but early customs preparation, release checks, haulage booking and empty-return planning can reduce avoidable delay.
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