Logistics & transporten
Demurrage
Penalties charged by the shipping line when a container remains at the port terminal beyond the free time allowed for its collection.
Definition
Demurrage refers to charges invoiced by the shipping line when a full container remains at the port terminal beyond the free time allowed for its collection after discharge from the vessel.
Mechanism
- Free time: grace period (typically 3-7 days) during which the container can remain at the terminal at no charge
- Beyond free time, demurrage applies at a progressive rate (the daily cost increases with duration)
- Rates are set by the shipping line in its tariff schedule
Distinction from detention
Important distinction:
- Demurrage: charges applied while the container is at the terminal (before collection or after return)
- Detention: charges applied when the container is outside the terminal (at the importer's/exporter's premises) beyond the allowed time
Common causes
- Customs clearance delays (missing documents, inspections)
- Port congestion (terminal saturation)
- Lack of coordination with the inland carrier
- Documentary disputes or non-payment of freight
Tips to minimise demurrage
- Prepare customs clearance documents before vessel arrival
- Negotiate extended free time with the shipping line (especially for high volumes)
- Use AEO status to expedite clearance
- Have a pre-booked road carrier for prompt collection