Ocean Freight
Demurrage vs Detention: What They Are and How to Avoid Them
5 min read
Demurrage and detention are two of the most common — and most avoidable — charges in container shipping. They sound similar but mean different things, and confusing them can be costly. This guide explains both clearly.
What is demurrage?
Demurrage is charged when a full container sits inside the port or terminal beyond the allowed free time after it is discharged from the vessel. In other words, you are charged for occupying terminal space too long before picking up the container.
What is detention?
Detention is charged when you hold the shipping line’s container outside the terminal — for example at your warehouse — beyond the allowed free time before returning the empty container. Here you are charged for keeping the carrier’s equipment too long.
A simple way to remember the difference
- Demurrage: container is still inside the terminal/port (space charge).
- Detention: container has left the terminal and is with you (equipment charge).
- Both start after the carrier’s "free days" run out.
How to avoid these charges
- Clear customs and documentation early so cargo can move within free time.
- Arrange transport and unloading in advance of arrival.
- Return empty containers promptly after de-stuffing.
- Negotiate longer free-time terms upfront for predictable lanes.
- Work with a forwarder who monitors free-time deadlines for you.