Freight Glossary
Demurrage – Meaning & Examples
A charge for keeping a container at the port/terminal beyond the free time allowed.
- Related terms
- port storage, container delay charge, terminal charge
Demurrage is a fee charged by shipping lines when a container remains at the port terminal beyond the allotted free days after vessel discharge. It compensates carriers for the delayed use of their equipment. Free time typically ranges from 3-7 days depending on location and carrier. Demurrage charges increase progressively the longer the container stays. It incentivizes prompt cargo pickup and keeps port operations moving.
Demurrage examples
- If free time is 5 days and a container stays 8 days, 3 days of demurrage fees apply.
How Demurrage is used in freight operations
Demurrage appears in quotations, bookings, shipping documents, and tracking updates. Confirm how it applies to your shipment with your carrier, forwarder, or customs representative, because practice can differ by country and contract.
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Frequently asked questions
What is Demurrage?
A charge for keeping a container at the port/terminal beyond the free time allowed.
What is an example of Demurrage?
If free time is 5 days and a container stays 8 days, 3 days of demurrage fees apply.