Demurrage
Demurrage is a fee the shipping line charges when a full container stays at the port longer than the free time. The fee is charged per day.
In plain words
When a container arrives at the port, the shipping line gives a number of free days. In this time, you can clear customs and collect the container. After the free days end, demurrage starts. The daily rate often goes up the longer the container stays.
Free days and rates are different for each shipping line, port, and container type. Check them before you book, and ask whether extra free days are possible.
Demurrage is often confused with two other charges. Detention is a fee for keeping the line's container outside the port for too long, for example at your warehouse. Storage is a fee from the port or terminal for the space. Some lines combine demurrage and detention into one charge, called D&D.
The most common causes are late documents, customs checks, and unpaid charges. To avoid demurrage, send the documents to your customs broker before the ship arrives, and book a truck for the ETA. In ship chartering, demurrage has a different meaning: it is a fee paid when a ship stays in port longer than agreed.
Example from real shipping
A 40-foot container arrives in Mersin. The shipping line gives 7 free days. The importer sends the commercial invoice to the customs broker late, so clearance takes 11 days. The importer pays 4 days of demurrage at the line's daily rate. On the next shipment, the importer sends all documents before arrival, and the container leaves the port in 4 days, within the free time.
Related terms
- ETAETA is the date and time when a ship, truck, or plane is expected to arrive. It is an estimate, so it can change.
- B/LA Bill of Lading (B/L) is the main document for sea freight. The carrier issues it when it takes the goods. It shows who can collect the goods at the destination.
- DetentionDetention is a daily fee the shipping line charges when you keep its container outside the port or terminal longer than the free time.
- Free timeFree time is the number of days you can use a container, or keep it at the port, without paying extra charges.
- StorageStorage is a fee for keeping cargo or a container at a port, terminal, airport, or warehouse. It is usually charged per day after a free period.
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Request a QuoteThis glossary is general information, not legal or customs advice. Rules, fees, and practice can differ by carrier, port, and country.