In port drayage, few terms cause more confusion (and unexpected costs) than detention and demurrage. They often appear on invoices with little explanation, leaving shippers wondering what went wrong.
While these two charges are closely related, they apply to different stages of the container lifecycle. Understanding the difference can help you avoid delays, reduce costs, and plan shipments more effectively.
What Is Demurrage?
Demurrage is charged when a container stays at the port terminal longer than the allowed free time.
- Where it happens: At the port / terminal
- Who charges it: The ocean carrier or terminal
- When it starts: After the Last Free Day (LFD) if the container has not been picked up
In simple terms, demurrage is a storage fee for occupying space at the terminal.
Common Causes of Demurrage
- Missed or delayed container pickup
- Customs or document holds
- Terminal congestion
- Poor coordination around LFD
Once the free days expire, demurrage is charged per container, per day, and rates can increase quickly.
What Is Detention?
Detention is charged when a container is picked up from the terminal but not returned empty within the allowed free time.
- Where it happens: Outside the terminal (road, warehouse, yard)
- Who charges it: The ocean carrier
- When it starts: After the free time for empty return expires
Detention is essentially a usage fee for holding onto the carrier’s equipment too long.
Common Causes of Detention
- Slow unloading at the warehouse
- Appointment-only receiving delays
- Live unload wait times
- Weekend or holiday return restrictions
Even if the cargo is unloaded, detention continues until the empty container is return
Timeline:
Vessel Arrival
↓
Container at Terminal
→ Free Time Ends → Demurrage
↓
Container Picked Up
↓
Delivered & Unloaded
→ Free Time Ends → Detention
↓
Empty Returned
How to Reduce Detention and Demurrage?
While they can’t always be eliminated, they can often be reduced by:
- Tracking Last Free Days closely
- Confirming warehouse readiness before pickup
- Understanding appointment vs. FCFS receiving
- Working with local drayage partners familiar with terminal conditions
Proactive coordination is usually far less expensive than reactive problem-solving.
Contact Us
Have questions about detention, demurrage, or container delivery planning?
Our team is happy to review your shipment details and help you avoid unnecessary delays and fees.
Contact us today for operational guidance or a customized quote.