What is a demurrage charge and how is it calculated?

Demurrage is a charge levied by the shipping line when you fail to return the empty container to their depot within the free time allowed after the container is available for collection at the destination port.

Free time: Typically 5–7 calendar days at major ports (more at some smaller ports or under contract terms). Clock starts when the container is discharged and available.

Demurrage rates (per container per day, after free time expires):

• Day 1–5 over free time: $50–100/day
• Day 6–10: $100–150/day
• Day 11+: $150–250+/day

(These are illustrative; actual rates vary by carrier and port)

Detention (a related but separate charge): For keeping the container outside the port/depot after pickup. Not the same as demurrage — make sure you understand which charge applies.

How to avoid demurrage:

1. Plan customs clearance before vessel arrival — file your Bill of Entry early so you have duty assessment ready on arrival day
2. Pre-arrange delivery transport — book your trucker before the vessel arrives
3. Know your exact free time — check it on the shipping line's web portal when the B/L is issued
4. For LCL: Understand that demurrage at the CFS (Container Freight Station) is calculated differently from FCL port demurrage

If demurrage accrued due to port strike or carrier error, you can dispute it. Document everything in writing.