Demurrage vs Detention: What Is the Difference in Shipping?
Demurrage and detention are additional charges that may apply when a shipping container is not collected or returned within the agreed free period.
These terms are often confused because both relate to container delays.
The main difference is simple:
Demurrage usually applies while the container remains inside the port or terminal.
Detention usually applies after the container leaves the port but is returned late.
Understanding these charges helps importers and exporters avoid unexpected logistics costs.
What Is Demurrage?
Demurrage is a charge that may apply when a container remains at a port or terminal longer than the free time allowed by the shipping line.
For example, an import container arrives at the destination port. If the buyer does not complete customs procedures or collect the container on time, demurrage charges may begin.
Common causes include:
Customs clearance delays
Missing documents
Late payment of duties or fees
Port congestion
Inspection delays
Late cargo collection
Incorrect shipping documents
Demurrage is commonly calculated per container and per day.
What Is Detention?
Detention is a charge that may apply when a container is collected from the port but is not returned to the shipping line within the allowed period.
For example, a container is delivered to the buyer’s warehouse. The goods are unloaded, but the empty container is returned late.
Common causes include:
Slow unloading
Warehouse congestion
Lack of equipment
Transport delays
Weekend or holiday closures
Poor return planning
Incorrect empty-container return location
Detention is also usually calculated daily.
Demurrage vs Detention: Main Difference
Factor | Demurrage | Detention |
Container location | Inside port or terminal | Outside port or terminal |
Main issue | Container not collected on time | Empty container not returned on time |
Typical cause | Customs or port delay | Unloading or transport delay |
Charge basis | Per container, per day | Per container, per day |
Prevention | Prepare documents and clearance | Plan unloading and return |
Shipping lines may use slightly different definitions or combine the charges. Businesses should always check the carrier’s tariff and contract.
What Is Free Time in Shipping?
Free time is the number of days a customer can use or store a container without paying demurrage or detention charges.
A shipping line may offer separate free periods for:
Port storage
Demurrage
Detention
Container use
For example, a customer may receive:
Five free days at the terminal
Seven free days outside the port
After the free period ends, daily charges may apply.
How Are Demurrage and Detention Charges Calculated?
Charges depend on several factors:
Shipping line
Port
Country
Container size
Container type
Number of delayed days
Free time
Cargo type
Season
Special containers such as reefer, open-top, or flat rack containers may have higher daily charges.
Rates may also increase in stages.
For example:
Days 1–5: lower daily rate
Days 6–10: higher daily rate
Day 11 onward: significantly higher rate
This means long delays can become very expensive.
Who Pays Demurrage and Detention?
The responsible party depends on the sales contract, transport agreement, Incoterms rule, and cause of the delay.
The buyer may be responsible when:
Customs clearance is delayed
The container is collected late
Unloading takes too long
The empty container is returned late
The seller may be responsible when:
Incorrect documents cause delays
Shipping instructions are incomplete
Delivery obligations are not fulfilled
A freight forwarder or logistics provider may also be responsible if the delay results from an operational mistake, depending on the contract.
Responsibility should be clearly stated in writing.
Is Demurrage the Same as Port Storage?
No.
Demurrage is generally charged by the shipping line for using its container beyond the free period.
Port storage is usually charged by the terminal or port for occupying space.
A delayed shipment may generate both charges at the same time.
Is Detention the Same as Truck Waiting Time?
No.
Detention relates to the late return of a shipping container.
Truck waiting time applies when a truck waits too long at a loading or unloading location.
Both can create additional logistics costs, but they are different charges.
How to Avoid Demurrage Charges
Businesses can reduce demurrage risk by:
Preparing customs documents early
Checking the Commercial Invoice and Packing List
Working with a customs broker before arrival
Monitoring the estimated arrival date
Paying duties and charges on time
Confirming delivery instructions
Planning container pickup
Requesting additional free time when needed
Early preparation is especially important for imported goods that require inspection or special permits.
How to Avoid Detention Charges
Detention can be reduced by:
Preparing the unloading area in advance
Scheduling warehouse staff
Arranging forklifts or cranes
Confirming the empty-container return location
Booking transport early
Considering weekends and public holidays
Tracking the final return date
Returning the container immediately after unloading
A clear unloading plan can prevent unnecessary delays.
Demurrage, Detention, and FCL Shipping
Demurrage and detention are especially important in FCL shipping because the customer uses the entire container.
If the container is delayed at the port, demurrage may apply.
If it is removed from the port and returned late, detention may apply.
In LCL shipping, the shipper usually does not control the full container. However, warehouse, storage, and cargo delay charges may still occur.
How Incoterms Affect Responsibility
Incoterms define the cost, risk, and delivery responsibilities of buyers and sellers.
For example:
Under EXW, the buyer manages most transportation activities.
Under FOB, the buyer usually controls the main sea freight.
Under CIF, the seller arranges freight and minimum insurance.
Under DAP, the seller delivers to an agreed destination.
Under DDP, the seller has broader delivery responsibilities.
However, Incoterms alone may not fully determine who pays demurrage or detention.
The cause of the delay and the commercial contract must also be considered.
Questions to Ask Before Shipping
Before accepting a freight quotation, ask:
How many free days are included?
Are demurrage and detention calculated separately?
What are the daily rates?
Do rates increase after several days?
Are weekends included?
Is port storage charged separately?
Where should the empty container be returned?
Can additional free time be negotiated?
These details should be confirmed in writing.
Common Mistakes
Businesses often make these mistakes:
Ignoring free-time limits
Preparing documents late
Failing to track container arrival
Not planning warehouse unloading
Assuming storage is included
Returning the container to the wrong location
Relying only on verbal information
Not checking carrier-specific rules
Finding Logistics Companies Through Exvoria
Exvoria International connects manufacturers, wholesale buyers, and logistics companies in a digital B2B environment.
Businesses can use Exvoria to:
Discover logistics company profiles
Review available services
Send connection requests
Communicate directly
Discuss container shipping needs
Build international business relationships
Final freight rates, free-time conditions, insurance terms, and contracts are agreed directly between the parties.
Frequently Asked Questions
What is demurrage?
Demurrage is a charge that may apply when a container remains inside a port or terminal beyond the allowed free time.
What is detention?
Detention is a charge that may apply when a container leaves the port but is returned late.
What is the difference between demurrage and detention?
Demurrage usually applies inside the port. Detention usually applies outside the port.
What is free time?
Free time is the number of days a container can be used or stored without additional charges.
Who pays demurrage charges?
The responsible party depends on the contract, Incoterms rule, and cause of the delay.
Can demurrage and detention be negotiated?
In some cases, additional free time may be negotiated before booking, especially for regular or high-volume shipments.
Conclusion
Demurrage and detention are two different container delay charges.
Demurrage usually applies when a container stays too long inside the port or terminal. Detention usually applies when the container is returned late after leaving the port.
Businesses can reduce these costs by preparing documents early, tracking arrival dates, planning unloading, and confirming free-time rules before shipping.
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