Ocean Freight Surcharges

DEM Surcharge (Demurrage)

DEM (Demurrage): Charge for keeping containers at port beyond free time. When it applies, typical range, and who pays under common Incoterms.

Code: DEM
Name: Demurrage
Typical range: $75-$400+ per day after free time
Routes: All ports worldwide

Demurrage is the charge applied when import containers remain at the port or terminal beyond the allowed free time. It's essentially a "parking fee" for containers sitting in the port yard waiting to be picked up.

Key demurrage concepts: • Free Time: Days allowed without charge (typically 3-7 days) • Per Diem Rate: Daily charge after free time expires • Tiered Rates: Charges increase the longer containers sit

Demurrage rate structure (example): • Days 1-5: Free • Days 6-10: $75/day per container • Days 11-15: $150/day per container • Days 16+: $225/day per container

Demurrage occurs due to: • Customs clearance delays • Documentation problems • Consignee unable to receive cargo • Trucker/chassis unavailable • Inspection holds

Important distinction: • Demurrage: Container at PORT/terminal • Detention: Container outside port (at warehouse, etc.)

Both are charged by shipping lines to ensure equipment returns promptly.

When DEM applies

When import containers remain at port beyond free time.

Who pays DEM under common Incoterms

FOB: buyer
CIF: buyer
EXW: buyer
DAP: seller

How to minimize DEM

Pre-clear cargo before vessel arrival
Have transport ready for pickup
Negotiate extended free time
Resolve documentation issues early
Use last free day calculators

Frequently asked questions

What is the DEM surcharge?

DEM stands for Demurrage. Charge for keeping containers at port beyond free time.

When does DEM apply?

When import containers remain at port beyond free time.

How much is DEM?

The typical range is $75-$400+ per day after free time. Confirm the current amount with your carrier or forwarder.