Demurrage
Charges imposed by the shipping line when a container stays at the port terminal beyond the allotted free days after vessel discharge. Demurrage fees escalate rapidly and can cost hundreds of dollars per day.
Demurrage is a charge levied by the ocean carrier (shipping line) when a container remains at the port terminal beyond the "free time" allowed after the vessel discharges the container. Free time is typically 3-5 business days for most carriers and ports, though this can vary. After free time expires, demurrage charges begin accruing daily, typically starting at $50-$150 per day and escalating to $200-$400+ per day the longer the container sits.
Demurrage commonly occurs due to: delays in customs clearance (missing documents, CBP examinations, OGA holds), slow arrangement of drayage/trucking to pick up the container, the importer not being aware the container has arrived, documentation discrepancies between the B/L and actual cargo, or disputes between the importer and broker/forwarder causing processing delays.
Demurrage is distinct from detention (see related term), though they are often confused. Demurrage is charged while the container is at the port terminal. Detention is charged after the container leaves the port but the empty container is not returned to the carrier within the allowed time. Together, these charges (often called "D&D") can add up to thousands of dollars if a shipment is not cleared and returned promptly. Proactive management -- having all documents ready before the vessel arrives, pre-clearing customs when possible, and having a drayage appointment scheduled -- is the best way to avoid these charges.
Why it matters
Track your vessel arrival date and have all customs documents submitted to your broker 5-7 days before arrival. Pre-clear customs whenever possible so the container can be picked up within the free time window.
Practical Tip
Track your vessel arrival date and have all customs documents submitted to your broker 5-7 days before arrival. Pre-clear customs whenever possible so the container can be picked up within the free time window.
You'll hear this when…
When booking freight
“"Our freight forwarder asked which Demurrage option we prefer for this LCL shipment."”
When tracking a shipment
“"The Demurrage status shows the container departed the origin port on schedule."”
When managing delivery
“"We use Demurrage for all inbound shipments to keep lead times predictable."”
Related Terms
Detention
Charges imposed by the shipping line when an empty container is not returned to the designated depot within the allotted free days after being picked up from the port. Distinct from demurrage, which is charged at the port terminal.
Bill of Lading
B/LA legal document issued by the carrier (shipping line) that serves as a receipt for goods, a contract of carriage, and a document of title. It is one of the most important documents in international shipping.
Customs Broker
A licensed professional authorized to clear goods through customs on behalf of importers. In the US, customs brokers must hold a federal license and are responsible for correctly classifying goods, calculating duties, and ensuring regulatory compliance.
Freight Forwarder
A logistics company that arranges international shipping on your behalf, handling booking cargo space, documentation, customs brokerage, and coordinating the door-to-door movement of your goods.
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