Demurrage vs Detention: What's the Difference?

Demurrage and detention are often confused terms in shipping and logistics. Learn the key differences between them and how they impact your freight costs. Need a quick summary? Click the button below.

 

 

What is Demurrage?

Demurrage refers to the charges incurred when a container remains at the port terminal beyond the allowed free time without being picked up. It is a penalty for storing containers at the port longer than agreed.

What is Detention?

Detention applies after the container has left the port. It is charged when the container is not returned to the shipping line within the agreed free time.

Key Differences Between Demurrage and Detention

Aspect	Demurrage	Detention
Location	Inside the port terminal	Outside the port (e.g., at factory)
When It Occurs	Container is not picked up on time	Container is not returned on time
Charged By	Shipping Line	Shipping Line
Main Goal	Free up terminal space	Speed up container return
Common Mistake	Assuming they are the same	Using terms interchangeably

Why This Matters in Real Logistics

Understanding the difference helps prevent unexpected costs. Confirm your free time, plan your logistics, and communicate any delays to avoid charges.

Quick Tips to Avoid These Charges

• Know your Free Time
• Efficient Pickup and Return
• Monitor Port Schedules
• Use Logistics Software

Final Thoughts

Demurrage and detention both impact shipping costs. Know where and when they apply to keep your logistics operations efficient and cost-effective.