Demurrage and detention are different charges
Two clocks, two owners, frequently running at once. Clearing customs stops neither of them by itself.
Licensed U.S. customs brokerage. Customs broker of record; movement coordinated through vetted partners.
Demurrage is charged while your cargo remains inside the terminal beyond its free time. Detention is charged while you hold the carrier's container outside the terminal beyond its free time. Different parties bill them, different events start and stop them, and both can run on the same shipment at once.
Key takeaways
- Demurrage: cargo sitting in the terminal, billed by the terminal or port.
- Detention: carrier equipment held outside, billed by the ocean carrier.
- Both can accrue simultaneously on one shipment.
- Customs release stops neither charge on its own.
- The clocks run through weekends, holidays and congestion alike.
Why confusing them costs money
The two charges are stopped by different actions. Demurrage stops when the container leaves the terminal. Detention stops when the empty is returned. An importer racing to collect a container to stop the clock has stopped one clock and started another.
The expensive version of this mistake is unloading slowly because the cargo has 'already been collected'. The terminal charge ended; the equipment charge did not, and it runs until the box comes back.
Free time is not a grace period
Free time is an allowance negotiated in your freight arrangements, not a courtesy. It varies by carrier, terminal and service, and it is shorter than most importers assume.
It also runs continuously. Weekends, public holidays, terminal congestion and your own warehouse being closed do not pause it. A shipment arriving on a Friday before a holiday can consume most of its allowance before anyone has been able to act on it.
What actually drives the exposure
Rarely the customs entry. Entries clear quickly when the filing is complete. What accrues charges is an examination referral, a document request, an agency review, or simply no available appointment and no available chassis.
This is the practical argument for having the entry ready before arrival. It does not make the terminal faster. It removes the one delay that was entirely within your control.
Two clocks, two owners
Demurrage
- Runs while your cargo sits inside the terminal.
- Charged by the terminal or the port.
- Starts when free time at the terminal ends.
- Stops when the container leaves the gate.
Detention
- Runs while you hold the carrier's equipment outside the terminal.
- Charged by the ocean carrier.
- Starts when free time on the equipment ends.
- Stops when the empty container is returned.
They can run at the same time on the same shipment, for different reasons, billed by different parties. Clearing customs stops neither of them on its own.
How it works
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01
Know your free time before arrival
Both allowances, from your freight arrangements.
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02
File the entry ahead of the vessel
Remove the delay you control.
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03
Book the move early
Appointments and equipment are the usual constraint.
-
04
Unload and return promptly
The equipment clock runs until the empty is back.
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05
Reconcile the invoices
Charges are frequently billed for periods that were not yours.
Common mistakes
- Thinking customs release stops the clocks. It stops neither.
- Collecting fast, then unloading slowly. One charge ends and the other continues.
- Assuming free time pauses at weekends. It runs continuously.
- Ignoring the empty return. Detention accrues until the container is back.
- Paying invoices without checking. Billed periods are often wrong at the edges.
Questions
Can both charges apply to one container?
Yes, and often they do. They cover different periods and different things, and they are billed by different parties.
Does a customs hold stop the charges?
No. The clocks continue while cargo is held, which is precisely why a hold is expensive beyond the hold itself.
Who do I dispute a charge with?
Demurrage with the terminal or port, detention with the ocean carrier. Knowing which one you are looking at is the first step to disputing it.
How do I keep the exposure down?
File early, book the move before the container lands, and return equipment promptly. Most avoidable charges come from waiting to start.
Related
Tell us what you're importing.
Commodity, origin, port and arrival date is enough to start.