Definitions #
The daily fee a shipping line charges when your container stays at the port or terminal past the free time.
Technical Liquidated damages charged by the carrier or terminal operator for exceeding the free time allowed for discharge and collection of a container at the destination port.
Example The importer paid USD 120 per day in demurrage because the trucking was delayed at customs.
More loosely, any storage charge on cargo that overstays its allowed time at a terminal.
Technical By extension, charges levied by port and terminal operators for cargo remaining in the facility beyond the free-storage period, sometimes distinguished from container detention.
Etymology #
From Old French demeurance (delay), related to demourer (to remain). Maritime usage dates to the 19th century, when charterers paid demurrage for keeping a vessel beyond the agreed laytime; container lines later adopted the word for overstaying containers.
Collocations #
- incur demurrage to run up terminal charges after free time expires
- demurrage-free period the number of free days before charges start
- demurrage claim the carrier's invoice or claim letter for overstay charges
- avoid demurrage the operational goal of clearing containers before free time ends
Real Business Examples #
- The importer paid USD 120 per day in demurrage because the trucking was delayed at customs.
- We track the demurrage-free period for every container to avoid surprise charges.
- The forwarder contested the demurrage invoice, attaching the terminal's daily container list as evidence.
Register & Variants #
- Register: formal; used in carrier tariffs, charterparties and freight invoices
- BrE/AmE: spelled identically in both; U.S. tariff texts often separate "demurrage" (overstay at the terminal) from "detention" (overstay of the box away from the terminal)
Synonyms & Antonyms #
- Synonyms: container demurrage, terminal overstay charges
- Antonyms: free time (the period during which no demurrage is charged)
Common Errors #
- Using "demurrage" and "detention" as if they were the same charge Demurrage is usually charged while the container stays at the terminal; detention is charged while the container is out of the terminal in the customer's hands
- Assuming demurrage can be negotiated after the fact Some claims are waived with evidence (for example, port congestion), but the free-time terms were part of the booking and the tariff
Confusable Terms #
- Demurrage vs Detention
- demurrage applies while the box sits in the terminal; detention applies while the box is away from the terminal, in the shipper's or consignee's control.
- Demurrage vs Storage
- terminal storage can be charged by independent port operators even when the carrier's demurrage does not apply; both can appear on the same invoice.
Frequently Asked Questions
Who is responsible for demurrage charges?
The party that holds the booking contract with the carrier — often the shipper or the freight forwarder. In practice the cost is re-invoiced to whoever caused the delay, usually the importer or consignee.
How can we avoid demurrage?
Pre-clear the customs documents, book trucking before the vessel arrives, and track the free-time deadline for every container from the date of discharge, not the sailing date.
Can demurrage be waived?
Carriers sometimes waive or reduce charges when the delay is caused by port congestion, strikes or other force-majeure events — if you provide evidence such as terminal gate reports and vessel schedules.
Published: 2026-08-04 Category: Shipping