Demurrage

Detailed explanation

Demurrage is the extra charge applied to the cargo owner or consignee when a container is not pulled from the port after the free period.

Demurrage vs Detention

Demurrage - Charged inside the port - Starts when the container arrives at the port - Calculated until the container is pulled out

Detention - Charged outside the port - Starts when the container is pulled - Calculated until the empty container is returned

Calculating Demurrage

**Formula**: days of delay × daily container rate

Rate Factors - **Container type**: 20ft, 40ft, reefer - **Shipping line**: each line sets its own rates - **Company policy**: some offer more flexibility - **Seasonal plan**: rates may vary by season

How to Avoid Demurrage

• •**Advance planning**: schedule the pull early
• •**Customs coordination**: finish procedures before arrival
• •**Use a customs broker**: experts in clearance
• •**Negotiate a longer free period**
• •**Monitor status**: continuous tracking