Demurrage

Demurrage is what the shipping line bills you when a container sits inside the port or terminal past the free time you were given to collect it. The clock starts when the box is discharged and available, and every day it stays uncollected after free time costs you money — so the charge is almost always avoidable with the right paperwork and a truck ready to go.

How demurrage is charged

Demurrage runs per container, per day, once your free days expire. Free time is usually 3–7 calendar days depending on the line, the port and your contract. After that, the rate climbs in tiers — the longer the container stays, the more each extra day costs.

Period after free time	Typical daily rate (per TEU)
Days 1–3	low tier
Days 4–7	mid tier
Day 8 onward	high tier

Exact figures vary by carrier and port, but the tiered structure is standard: it exists to push you to clear and collect the container quickly rather than treat the terminal as cheap storage.

What causes demurrage

Demurrage is rarely the line's fault — it is usually a process gap on the import side:

• Late customs clearance — the entry isn't lodged or duty isn't paid, so the box can't be released. Get customs clearance moving before the vessel arrives.
• Missing or wrong documents — no original bill of lading, mismatched commercial invoice, or an incomplete packing list.
• No truck booked — the container is cleared but there is no haulier slot to collect it.

Demurrage vs detention

These two charges are constantly confused, but the line between them is simple: where the container is.

	Demurrage	Detention
Where	Inside the port / terminal	Outside — at your premises
Triggered by	Box not collected after free time	Empty box not returned after free time
Typical cause	Customs or no truck	Slow unloading or return delay

Demurrage applies while the full container is still sitting in the terminal. Detention applies once you have pulled the box out and held it too long at your warehouse before returning it empty. Both run on their own free-time clocks. Our deeper breakdown is in demurrage vs detention.

How to avoid demurrage

• Pre-clear customs so the entry is ready the moment the vessel docks.
• Confirm all import documents are correct and originals are in hand early.
• Book your collection haulage in advance, not on arrival day.
• For goods you can't clear immediately, move them to a bonded warehouse so duty and storage clocks pause.

When you do need a truck off the quay fast, UMERA turns a single request into competing carrier quotes, so you can book collection before free time runs out instead of after.

FAQ

What does demurrage mean in shipping?

Demurrage is a daily charge the carrier applies when a container stays inside the port or terminal beyond the agreed free days, before you have collected it.

How is demurrage calculated?

It is charged per container, per day, after free time expires, and the daily rate usually rises in tiers — so a box left for two weeks costs far more per day than one collected on day one.

What is the difference between demurrage and detention?

Demurrage covers a container held inside the terminal; detention covers a container you have already taken out and kept too long at your own premises before returning it empty.

How can I avoid demurrage charges?

Clear customs before the vessel arrives, have correct documents ready, and book collection haulage in advance so the container leaves the terminal within its free time.