Guide · Ocean Freight

Demurrage & Detention, Explained

The two most expensive words in container shipping. What they mean, why the charges pile up so fast, and practical ways to stop paying them.

Every container you ship comes with a clock attached. Two clocks, actually — and when either runs out, the carrier starts charging you daily fees that can quietly exceed the freight cost itself.

Definitions: demurrage vs. detention

Free time is the grace period before either clock starts — commonly 3–7 days for demurrage and 3–5 for detention, varying by carrier, port and contract. Charges typically escalate in tiers: the first days past free time might be $75–150/day, rising to $300+/day the longer the box sits. On a delayed multi-container shipment, five figures accumulates fast.

Why charges actually happen

Almost never because someone chose to leave a container sitting. The usual causes are information failures:

Seven practical ways to avoid the charges

  1. Track the vessel, not just the booking — live AIS positions reveal early/late arrivals days before carrier ETAs update. (Vessel tracking.)
  2. Alert on discharge — the demurrage clock starts at discharge, so that event should page someone, not sit in a portal.
  3. Pre-clear customs — file before arrival wherever the regime allows; use accurate predictive ETAs to time it.
  4. Book trucking against live ETAs — not against the ETA from three weeks ago.
  5. Make the empty-return date visible — a shared dashboard deadline, not tribal knowledge.
  6. Watch transshipment ports — a missed connection at a hub shifts the whole arrival window; catching it early resets everyone's planning. (Exception management.)
  7. Keep an audit trail — event timestamps win disputes; carriers do occasionally start clocks incorrectly.

All seven are visibility problems before they're operational ones — which is why a tracking dashboard with alerts, like Shyppy, pays for itself the first time it saves a single day of demurrage.

Frequently asked questions

What is the difference between demurrage and detention?

Demurrage applies while the container is inside the terminal beyond free time (e.g. slow pickup after discharge). Detention — also called per diem — applies while the container is outside the terminal beyond free time (e.g. returning the empty late). You can incur both on the same shipment.

How much are demurrage charges typically?

Commonly $75–150 per container per day in the first tier past free time, escalating to $300+ per day in later tiers, depending on carrier, port and equipment type. Multi-week overruns on multiple containers routinely reach five figures.

What is free time in shipping?

The grace period included in your freight contract before demurrage or detention accrues — often 3–7 days for demurrage and 3–5 for detention, negotiable in carrier contracts and varying by port.

Who pays demurrage — shipper or consignee?

Whoever holds responsibility under the incoterms and the carrier contract for that leg. On imports it's usually the consignee/importer; disputes are common, which is why keeping timestamped tracking events matters.

Can demurrage be avoided entirely?

Not always — port congestion or customs holds can be outside your control — but most charges stem from late information: unnoticed discharges, stale ETAs, forgotten return deadlines. Live tracking with alerts removes the avoidable majority.

See every shipment in one place

Ocean containers, air cargo, courier parcels and live vessel positions — tracked in a single dashboard with automatic alerts. Free plan, no credit card.