What Are Detention Charges?​

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Definition:
Detention charges are fees applied when a shipper or consignee keeps transportation equipment such as containers or trailers beyond the period allowed in the contract.

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Free Time:
Most shipping lines grant a limited “free time” during which the equipment can be used without extra cost. The length of this period varies depending on the carrier and is stated in the shipping agreement.

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Purpose:
These charges are intended to encourage the prompt return of equipment. When containers are held too long, they cannot be used for other shipments, causing operational delays.

 

Billing:
Any detention costs that arise are provided by the shipping line (carrier) according to their tariff and conditions.

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What Are Demurrage Charges?

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Definition:
Demurrage charges apply when containers or other transport equipment remain at the port or terminal beyond the agreed free time for loading or unloading.

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Free Time:
Just like with detention, shipping lines offer a limited period of “free time.” Once this period expires, demurrage starts to apply. The duration of free time varies depending on the carrier and the specific port or terminal involved.

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Purpose:
These charges are designed to ensure the quick flow of cargo through ports and terminals. They help avoid storage congestion and promote efficient use of port facilities.

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Billing:
Any demurrage fees are provided by the seaport and/or Terminal according to their rates and contractual terms.