{"id":1848,"date":"2021-01-27T11:55:13","date_gmt":"2021-01-27T19:55:13","guid":{"rendered":"https:\/\/www.easyhaul.com\/blog\/?p=1848"},"modified":"2025-11-07T07:49:29","modified_gmt":"2025-11-07T15:49:29","slug":"demurrage-and-detention","status":"publish","type":"post","link":"https:\/\/www.easyhaul.com\/blog\/2021\/01\/27\/demurrage-and-detention\/","title":{"rendered":"Demurrage and Detention: What is it?"},"content":{"rendered":"

A few things in ocean freight are beyond your control: <\/span>delays<\/span><\/a>, <\/span>weather<\/span><\/a> conditions, the <\/span>demand for vessels<\/span><\/a>, and port congestion. Demurrage and detention are among them as well. Though both are <\/span>common shipping terms<\/span><\/a>, most people are entirely unfamiliar with them. In this blog, we\u2019re familiarizing you with their meaning and explaining how to avoid additional charges for demurrage and detention.<\/span><\/p>\n

Port Demurrage<\/b><\/h2>\n

\"demurrage<\/p>\n

Demurrage is a fine charged by a transport hub or a <\/span>supply chain<\/span><\/a> for any cargo that hasn\u2019t been picked up\/moved from the port after a specified time. The timeframe for <\/span>cargo loading<\/span><\/a>\/unloading at ports is called <\/span>laytime<\/b>: up to five days from the vehicle\u2019s arrival, depending on the port\u2019s operation speed. For example, if your vehicle was delivered on 1\/10 and you picked it up on 1\/17, you\u2019ll have to pay demurrage charges for at least two days, but again this depends on the port itself. All fees must be paid prior to pick up from the port, or your vehicle won\u2019t be released.<\/span><\/p>\n

The Difference Between Demurrage and Storage<\/b><\/h2>\n

Demurrage is repeatedly confused with storage, but they are not the same. Storage fees are applicable when a vehicle is being kept at a warehouse <\/span>before<\/span><\/i> onboarding a vessel. Demurrage, on the other hand, is incurred <\/span>after<\/span><\/i> arrival at the destination port or after a late pickup.<\/span><\/p>\n

Keep in mind that supply chains can keep a vehicle in a warehouse after arrival at the destination. In this case bills for storage and demurrage become separate. For more information on storage during shipping, read <\/span>this article<\/span><\/a>.<\/span><\/p>\n

Container Detention<\/b><\/h2>\n

\"demurrage<\/p>\n

Detention is another fine that can be incurred by the party owning containers in the <\/span>port<\/span><\/a>. This term denotes the use of a container or any other <\/span>equipment<\/span><\/a> outside of a port\u2019s facility beyond the specified pickup time. This is applicable to containers owned by a supply chain. In the case of shipper owned containers (<\/span>SOC<\/b>), only storage is charged since in this situation the container and equipment belong to the shipper. <\/span>SOC<\/b> is used when the supply chain doesn\u2019t provide its equipment to regions or countries.<\/span><\/p>\n

The Difference Between Demurrage and Detention<\/b><\/h2>\n

Poor logistics at the destination port, inclement weather, or <\/span>missing documentation<\/span><\/a> usually account for demurrage and detention charges.<\/span><\/p>\n

\"difference<\/p>\n

The main difference between demurrage and detention is the reference either to cargo or container\/equipment. Demurrage is charged according to the cargo\u2019s gross weight and a pickup delay, while detention is charged only when you use port equipment or containers beyond the specified time limitations. Neither shipping provider nor customer can change the demurrage and detention charges which vary from port to port. A client is liable for covering these expenses if any incurred.<\/span><\/p>\n

How to avoid demurrage and detention charges?<\/b><\/h2>\n

There are a few tips that will help you avoid demurrage and detention charges.<\/span><\/p>\n