Demurrage

Demurrage is a daily fee assessed when a loaded or empty shipping container remains at a port terminal, rail ramp, or container yard beyond the carrier's or terminal's free-time allowance. While detention applies to trucks held at shipper or receiver facilities, demurrage specifically covers the use of containers and chassis that aren't picked up or returned within the agreed window. The distinction matters – demurrage is charged by the steamship line, railroad, or terminal operator, not the trucking carrier.

Free-time windows for demurrage typically range from three to seven days depending on the port, carrier contract, and whether the container is import or export. Once free time expires, daily charges escalate on a tiered schedule – often starting at $100–$200 per day and climbing steeply the longer the container sits. At congested ports, demurrage can accumulate rapidly when chassis shortages, labor slowdowns, or inspection holds prevent timely pickup.

Demurrage hits shippers' bottom lines hard, particularly those moving import freight or using intermodal services domestically. Beyond the direct cost, demurrage signals a breakdown in coordination – between the shipper, drayage carrier, warehouse, and terminal. Shippers who lack visibility into container availability, vessel discharge dates, or terminal last-free-day calculations are often caught off guard by charges they could have avoided with earlier action. The Federal Maritime Commission has increased scrutiny on demurrage billing practices, pushing for clearer invoicing and fairer dispute resolution, but shippers still bear the burden of tracking and managing their exposure.

Proactive demurrage management requires real-time visibility into container status, clear communication with drayage providers, and tight coordination with receiving warehouses to ensure appointments are booked before free time expires.