Demurrage, detention and storage
Home — Demurrage, detention and storage
Three charges that look alike on an invoice and come from three different places.
The clock starts when the vessel does not
Every container comes with free time — a few days to collect it, and a few more to give the empty back. Miss either window and a charge starts running, per container, per day, until the box moves. On a delayed shipment these are usually the largest unplanned cost, and they are almost always avoidable.
The confusion is that three different charges sound like the same thing. Two are billed by the shipping line and one by the terminal, and which one you are paying depends on exactly where the container is standing.
Same invoice,
The easiest way to keep them apart is to ask where the box is: inside the terminal, outside it, or taking up terminal space with cargo still in it.
Demurrage
Inside the terminal
Charged by
The shipping line.
For what
The container staying inside the terminal beyond the allowed free time.
Example
The box lands and the line allows five free days. Not collected by day six, demurrage starts.
Best for
Stops the moment the container leaves the terminal gate.
Detention
Outside the terminal
Charged by
The shipping line.
For what
The container being out of the terminal and not returned within the free time.
Example
You collect the box, unload it, and return the empty later than permitted. Detention starts.
Best for
Stops when the empty is accepted back at the depot.
Storage
Terminal space occupied
Charged by
The terminal or port — not the line.
For what
Cargo or containers sitting on terminal premises beyond the free storage period.
Example
Cargo stays in the terminal past the free period the terminal allows. Storage applies.
Best for
A separate tariff, and it can run at the same time as demurrage.
Where each clock
One container, one journey, and two separate free-time windows along it.
From vessel to empty return
01
Vessel arrives
The ship berths at the destination port.
02
Discharged
The container is landed into the terminal.
03
Free time runs
The line’s demurrage free days. Collect inside this and there is nothing to pay.
04
Still in terminal
Past the free days and the box is still inside — demurrage starts.
05
Collected
The container leaves the gate. Demurrage stops, detention free time begins.
06
Empty not returned
Past the detention free days with the box still out — detention starts.
Eight things that hold a container up
Delays are rarely one factor. Shipping depends on a connected chain of vessels, ports, customs, terminals, equipment, hauliers and paperwork — when one link slows, the whole chain feels it.
Port congestion
Too many vessels and containers, or limited terminal capacity, slowing vessel and yard operations.
Vessel delays
Weather, operational problems, schedule changes, or delays at previous ports affecting arrival times.
Customs holds
Incomplete documentation, inspections, classification issues or regulatory requirements preventing release.
Documentation errors
Incorrect or missing documents delaying customs clearance, terminal release or delivery.
Equipment shortages
A shortage of suitable containers, chassis, trucks or other equipment disrupting the planned movement.
Transshipment delays
A missed vessel connection leaves the container waiting for the next available sailing.
Inland transport problems
Traffic congestion, driver and truck shortages, road restrictions, rail capacity or breakdowns.
Weather and the unforeseen
Storms, heavy rainfall, port closures, accidents and other unexpected events affecting the chain.
What a delay actually costs
The daily charge is the visible part. These are the rest of it.
Longer transit time
Every downstream date moves with it
Demurrage, detention and storage
Per container, per day, until the box moves
Inventory shortages
Stock that is on the water is not on the shelf
Missed delivery schedules
Promises made to your own customers, broken
Customer dissatisfaction
The part that does not appear on any invoice
Higher logistics costs
Expedited replacement freight, at short-notice rates
There is no standard free time
What decides your free days
The shipping line, the terminal tariff, the port and your contract terms
Free time is not a rule of the port; it is a term of your booking. Two containers landing on the same vessel can have different free days because they were booked with different lines or under different contracts. Ask for the free time in writing when the booking is confirmed, and plan collection against that date rather than against the arrival date.
Demurrage, detention and storage — the one-page version
The whole guide on a single sheet, sized for WhatsApp and for A4. Ours to give away.