Demurrage and detention are both charges for keeping a container too long. The difference is where the container is when the clock runs out.
- Demurrage: the container is still inside the terminal after its free time has ended.
- Detention: the container is outside the terminal (on the road or at your warehouse) longer than the free days allowed for returning it.
DemurrageLink to the section “Demurrage”
When a container is discharged, it gets a number of free days at the terminal. After the last free day, demurrage (and at some terminals, a separate storage charge) is billed daily until the container leaves.
Common causes: customs or other holds, unpaid freight, no available truck or appointment, or a delivery site that isn't ready.
Detention and per diemLink to the section “Detention and per diem”
Once the container leaves the terminal, a second clock starts. The ocean carrier allows a number of free days to unload it and return the empty. After that, detention is charged daily until the empty is back.
In US trucking you'll also hear per diem. It's the daily charge the ocean carrier bills for keeping its equipment beyond the free days, usually billed to the trucking company under its interchange agreement and passed on to the customer.
Don't confuse either with truck detention (waiting time): that's what the drayage provider charges when its driver waits beyond the free time at pickup or delivery.
Who sets the free timeLink to the section “Who sets the free time”
Free time is set by the ocean carrier and the terminal, and it can differ by carrier, terminal, container type and contract. Some ports publish default free time in their tariffs; our port pages show it where a published tariff states it. Always check the terms that apply to your shipment.
How the last free day worksLink to the section “How the last free day works”
The last free day is the final day the container can leave the terminal without demurrage. Whether weekends and public holidays count depends on the tariff. Plan the pickup, and the release that has to happen before it, so the container leaves on or before that day.
If pickup before the last free day isn't possible (for example because the delivery site is closed), a pre-pull can help: the trucker collects the container early and holds it at a yard until delivery. The yard storage usually costs less than the demurrage it avoids, but compare the two.
How to avoid the chargesLink to the section “How to avoid the charges”
- Start the release early. File customs documents before arrival and pay freight promptly.
- Know your last free day as soon as the vessel arrives.
- Book the truck and appointment early, especially at busy terminals.
- Have the delivery site ready, with receiving hours confirmed.
- Return empties quickly to stop detention.
- Check invoices. US rules set out what demurrage and detention invoices must contain and how they can be disputed.
On DrayageUS you can check the typical drayage range for your lane and request a firm quote within 24 hours, so the truck is lined up before the free time runs out.