Detention vs Demurrage in Shipping & Logistics: Simple Guide for Exporters & Importers
Detention vs Demurrage in Shipping & Logistics: Simple Guide for Exporters & Importers
What Are Detention and Demurrage?
When a container is used for international trade, the shipping line gives the importer or exporter a free period to use the container.
If the container is not returned or cleared within this permitted period, additional charges may apply.
These charges are commonly called Detention and Demurrage.
The easiest way to remember them is:
Demurrage = Container is waiting inside the terminal.
Detention = Container is outside the terminal and has not been returned.
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What is Demurrage?
Demurrage is a charge for keeping a container at the port or terminal beyond the allowed free time.
Example – Import
An Indian importer receives a container at Nhava Sheva/JNPT.
The shipping line provides 5 free days for clearing the container.
If customs clearance or documentation takes longer and the container remains inside the terminal for 8 days, the importer may have to pay demurrage for the additional 3 days.
Simple example:
5 days free → 8 days used → 3 days excess → Demurrage charged
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What is Detention?
Detention is a charge for keeping the shipping line’s container outside the port or terminal beyond the permitted free time.
Example – Import
The importer clears the container from the port and takes it to the warehouse.
The shipping line allows 7 days to unload the goods and return the empty container.
If the importer takes 10 days to unload and return it:
7 days free → 10 days used → 3 days excess → Detention charged
The charge compensates the shipping line for the container being unavailable for its next use.
Detention vs Demurrage – Quick Comparison
| Point | Demurrage | Detention |
| Where is the container? | Inside port/terminal | Outside port/terminal |
| Main issue | Container not cleared/removed on time | Empty container not returned on time |
| Usually starts after | Free terminal storage period | Free container-use/return period |
| Example | Customs clearance delay | Warehouse unloading delay |
| Main concern | Terminal space/storage | Shipping line’s container availability |
DE-MURRAGE → Container is stuck at the terminal.
DE-TENTION → You are holding the container.
Why Should Exporters & Importers Care?
Detention and demurrage can increase the total logistics cost of an international shipment.
Common reasons include:
- Delay in customs clearance
- Missing or incorrect documents
- Port congestion
- Delayed transport
- Warehouse problems
- Late unloading of containers
- Failure to return empty containers on time
For an importer or exporter, understanding the free time, applicable charges and container return requirements before shipment is important.
How Can You Avoid These Charges?
Before shipment:
- Check the free time offered by the shipping line.
- Keep customs and shipping documents ready.
- Coordinate with your CHA/customs broker and transporter.
- Plan container pickup and delivery in advance.
- Confirm where and when the empty container must be returned.
- Track the shipment and container deadlines.
Important: Free time and charges vary by shipping line, port, container type, trade route and contract. Always confirm the applicable terms with your shipping line or freight forwarder.
Conclusion
Demurrage and detention are not the same charge.
Remember the basic rule:
Inside the terminal → Demurrage
Outside the terminal → Detention
For exporters and importers, knowing the free period and planning customs clearance, transportation, unloading and container return can help avoid unnecessary logistics costs.
FAQs
- What is demurrage in shipping?
Demurrage is generally charged when a container remains inside a port or terminal beyond the allowed free time. - What is detention in shipping?
Detention is generally charged when a shipping line’s container remains outside the terminal beyond the permitted free time before being returned. - Is detention the same as demurrage?
No. The simplest distinction is demurrage relates to terminal/container storage time, while detention relates to the container being kept outside the terminal beyond the allowed time. - Who pays detention and demurrage?
Usually the party responsible under the shipping contract or applicable local arrangements. In imports, this is often the importer/consignee, but the exact responsibility depends on the shipment terms and agreement. - How can detention and demurrage be avoided?
Plan customs clearance, transportation and unloading in advance, check the free time, and return the empty container within the permitted period.