Demurrage
Demurrage is the fee charged by a carrier or port terminal when cargo (typically a container) stays at a port or terminal beyond the agreed free time. It applies to the cargo, not the equipment.
Free time at most U.S. ports runs three to seven days from container availability. After free time expires, demurrage starts accruing per day, often escalating in tiers — the rate triples after the second week, for example.
Customs delays are the most common cause: a held shipment cannot be moved until the hold is released. Documentation delays (missing delivery order, missing original BOL) are the second most common.
Demurrage is distinct from detention — demurrage is the cargo holdup at the terminal, detention is the equipment holdup after the container leaves the port. Many invoicing systems blend the two, which makes root-cause analysis hard.
Related terms
- DetentionDetention is the fee charged by a carrier when its equipment (the container, plus chassis where applicable) is held by the shipper or consignee beyond agreed free time. It applies to the equipment, not the cargo.
- Delivery orderA delivery order is a written instruction from the consignee (or their freight forwarder) to the carrier or terminal authorising release of the goods. It is the operational handoff from terminal possession to the consignee.
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