Freight glossary

Demurrage & detention

Penalty fees for keeping a container or using port space beyond the free time allowed.

Demurrage is charged when a container sits at the port beyond its free days; detention is charged when you keep the carrier's container (outside the port) too long before returning it empty. Both accrue daily and add up fast.

They're avoidable with tight scheduling — clearing customs promptly, arranging drayage on time, and returning empties quickly.

Why it matters

These fees are pure avoidable cost. They're a common nasty surprise for shippers who don't coordinate clearance and pickup.

Example

A container held five days past free time at CAD 150/day adds CAD 750 in demurrage.

Related terms

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