Demurrage, detention and storage: three costs, three clocks

Three different costs are often lumped together as waiting charges. They are not the same, they run at different moments, and they are billed by different parties.

Demurrage

Demurrage is charged by the shipping line when a full container stays at the terminal beyond the free days. The clock starts at discharge and stops when the container leaves the terminal.

Detention

Detention is charged when the container is outside the terminal for longer than agreed, until the empty container is returned to the port or depot. It runs on its own clock, after demurrage.

Storage

Storage is the terminal’s own charge for keeping the container on its premises. Some lines publish demurrage including storage; others show the two separately.

Free days and bands

The first days are free, after which the rate per day per container rises in bands: the longer the container stays, the more each following day costs. Free days are calendar days, weekends and public holidays included. Rates, free days and bands differ per shipping line, per container type and per contract.

Where the delay begins

Delay rarely starts in the port. It starts in the documentation before it: a missing certificate, a wrong commodity code or an authorisation that has not been arranged. When the papers are complete and correct before arrival, customs clearance runs days faster and the container leaves inside the free days.

Want an indication for your own shipment? Use our demurrage calculator.