Foreign-trade Glossary + Calculators
Charges
Demurrage
A charge paid to the carrier when an import container stays inside the terminal beyond the allowed free time before being picked up.
Demurrage is a per-day charge levied by the carrier when a container, after discharge, remains inside the terminal yard beyond the free time the carrier allows, and has not yet been collected. It covers the period the box is still sitting inside the terminal.
- How it is charged: once free time expires it accrues per container per day, often on an escalating scale, the longer the stay, the higher the daily rate; 20'/40'/special equipment carry different rates.
- Difference from detention: demurrage measures the container's over-stay inside the terminal, while detention measures the time the container is held outside the terminal after pickup (the empty not returned in time). The two are often jointly called demurrage and detention but apply at different stages.
- Watch-out: destination clearance delays, incomplete documents or the consignee's funds not arriving all trigger demurrage, and the amount can quickly exceed the cargo value; even on FOB/CIF, the exporter should remind the buyer of the free-time window to avoid knock-on disputes.
FAQ
- How do I tell demurrage and detention apart?
- Rule of thumb: box still inside the terminal, not picked up = demurrage; box taken out of the terminal but the empty not returned in time = detention. The first counts yard over-stay days, the second counts container-use over-stay days.
- How can I avoid heavy demurrage at the destination port?
- Confirm the free-time days with the carrier/forwarder upfront, push the buyer to have clearance documents ready, pay on time to release the B/L and book the pickup early; if clearance stalls, apply early for a free-time extension or a bonded transfer. Even when not liable, the exporter should flag this risk to the buyer in the contract and communications.
Sources: https://www.maersk.com/local-information · https://www.cma-cgm.com/