Demurrage
Demurrage is a fee charged when containers are not picked up, returned, or moved out of a port or terminal within the allowed free time. This free time is provided so consignees can complete customs clearance and arrange transportation. Once that window expires, demurrage begins to accumulate daily. It compensates terminals for the extra space and handling required to store the container longer than planned.
The charge applies until the container is collected from the port. It is different from detention, which applies after the container is taken out but not returned on time. Demurrage encourages the timely movement of cargo and prevents terminal congestion. If the container stays at the port too long, operations slow down, and carriers face increased costs.
Shippers and consignees must monitor arrival dates, clearance progress, and documentation deadlines to avoid unnecessary fees. Delays often happen due to missing paperwork, customs holds, or a lack of inland transport arrangements. Good coordination with forwarders, transporters, and customs brokers helps reduce the risk of demurrage. Planning keeps cargo moving smoothly.
Overall, demurrage promotes efficient port operations. It ensures containers do not occupy space longer than needed and encourages timely clearance. By understanding how demurrage works, businesses can avoid unexpected costs and keep their supply chain running efficiently.
Frequently Asked Questions about Demurrage
Clear answers to the most common questions people have when learning about Demurrage.
Demurrage happens when a container is not picked up from the port within the allotted free time, often due to customs delays, missing documents, or transport shortages.
By tracking vessel arrival dates, preparing documents early, completing customs clearance quickly, and scheduling transport in advance.
No. Demurrage applies while the container stays inside the port, while detention applies when the container is outside the port but not returned on time.