Demurrage vs detention: free time, costs, how to avoid them | Nil Ocean Shipping
Demurrage is what a carrier charges when your full container stays inside the port or terminal beyond the agreed free time; detention is what it charges when you keep its container outside the terminal beyond the free time, usually until the empty is returned. Port storage is a separate charge raised by the terminal. You avoid all three by agreeing free time in writing and having documents ready before the container arrives.
What is the difference between demurrage, detention and storage?
The difference is where the container is and who is charging: demurrage and detention are carrier charges for the use of its equipment inside and outside the terminal, while storage is the terminal's charge for space.
Charge
Where the container is
Usually charged by
When the clock runs (imports)
What stops it
Demurrage
Full, inside the terminal
Carrier (shipping line)
From discharge, or the day after, until the full container leaves the terminal
Gate-out after clearance and delivery order
Detention
Outside the terminal, full or empty
Carrier
From gate-out full until the empty is returned to the named depot
Empty return, with a receipt
Storage
Inside the terminal
Terminal or port operator
After the terminal's own free period
Gate-out
On exports, detention usually runs from empty pick-up until the full container is gated in at the port of loading. Some carriers give one combined allowance for demurrage and detention, while others count them separately, so read the tariff or your contract.
What is free time, and how is it counted?
Free time is the number of days you can use the container without charges, set by the carrier's tariff for each port and equipment type or by your contract, and it can often be negotiated or extended at a price. Check five details:
Calendar or working days. Many tariffs count calendar days, including weekends and public holidays.
Start point. The day of discharge or the day after; for diverted cargo, which port counts.
Combined or separate. One pool for demurrage and detention, or two separate allowances.
Equipment. Reefers and special equipment such as open tops and flat racks often get less free time.
In writing. A free-time promise that is not on the booking or quote is hard to enforce. Published customer complaints include a verbal 14-day promise that became 7 days because it was never written into the booking.
Some carriers sell extra free time when you book. If your destination usually clears slowly, compare that price with a realistic delay.
How much do demurrage and detention cost?
They are daily rates per container that usually rise in tiers the longer the container stays, and they vary by carrier, port, equipment type and year, so any number you see is indicative. As an illustration for Iraq, one Iraq-focused forwarder quoted (April 2026) free time of about 7–10 days at Umm Qasr, demurrage of about USD 75–150 per day and detention of about USD 50–120 per day (Direct Drive Logistic, vendor figures). Chinese forwarders' guides often describe destination free time of 7–14 days. Ask for the actual tariff for your port and container type, and use our demurrage calculator to see how quickly the days add up.
Why do demurrage and detention bills appear even when you did nothing wrong?
Because the clock usually keeps running during delays you do not control, such as customs system outages, valuation disputes, congestion, diversions and changes of return depot. Recent examples from the markets we serve:
Where
What happened
Effect
Kenya, February 2026
A customs system upgrade planned for 36 hours ran beyond 72 hours (Business Daily)
Clearance stopped and truck queues formed at Mombasa
Iraq, early 2026
Under the new customs regime, containers were left uncollected while importers disputed valuations (Kapita via Iraq Business News)
Demurrage compounded
Gulf, August 2026
A major carrier suspended empty returns at usual Gulf locations (Nautica Post)
Longer trips to return empties and more detention exposure
Nigeria, 2025
Customs platform glitches left containers pending even after duty was paid
Demurrage and rent built up
The problem is widespread: in the Nigerian Shippers' Council complaint data for Q2–Q4 2025, demurrage and storage waiver requests made up 11.2% of complaints and were rated critical. Whether a carrier waives charges in such cases is usually at its discretion or depends on local rules, so record the cause of every delay as it happens.
How can importers avoid demurrage and detention?
Most charges are avoided by work done before the vessel arrives, not after.
When
What to do
Before shipping
Agree free time in writing (days, start point, combined or separate, return depot). Buy extra free time if clearance is usually slow. Finalise invoice, packing list, certificate of origin and any certificate of conformity before departure.
Before arrival
Pay freight and charges on time so the bill of lading and delivery order are released. File any pre-declaration. Book the truck. Note the last free day.
On arrival
Clear and collect within free time. Escalate early if a document or system problem appears.
After delivery
Unload promptly, return the empty to the named depot and keep the equipment interchange receipt (EIR).
How do you dispute a demurrage or detention invoice?
Compare the invoice with what was agreed, collect your evidence and write to the carrier within its dispute window.
Check the free days, the start date, the discharge, gate-out and empty-return dates, and the rate tier used.
Gather evidence: the quote or booking showing free time, gate-out records, the EIR, emails and any official notice of a customs or port outage.
Write to the carrier or its agent, explain the error or the cause of the delay, and ask for a corrected invoice or a waiver.
Escalate where a regulator handles disputes; in Nigeria, for example, the Shippers' Council offers dispute resolution.
Rules differ by country. As a reference, US regulations (46 CFR Part 541) list what a demurrage or detention invoice must show, including the free time allowed, the start and end dates, the applicable rate and how to dispute it. It is a useful checklist even when your shipment never touches the US.
How does Nil Ocean help you keep free time under control?
We put the agreed free days on your cost sheet, show a countdown for each container in your case file with a warning three days before free time ends, and record the cause of every delay on the case timeline. If a charge appears that was not on the cost sheet, it needs your approval before it is added. See also how free time works on diverted cargo in our guide to Strait of Hormuz routing.
Frequently asked questions
What is the difference between demurrage and detention?
Demurrage is charged while the full container stays inside the terminal beyond free time; detention is charged while the container is outside the terminal beyond free time, usually until the empty is returned. Both are carrier charges.
When does free time start?
Usually on the day of discharge or the day after, depending on the carrier's tariff or your contract. Get the start point in writing, especially for cargo discharged at a different port than planned.
Can I negotiate more free time?
Often yes, at booking. Some carriers sell extra free time, and contract customers can negotiate it; compare the price with a realistic clearance delay at your destination.
Who pays demurrage if customs systems are down?
Usually the cargo owner, unless the carrier agrees to a waiver or local rules provide otherwise. Record the outage and keep official notices, because they are your evidence in a dispute.
Is port storage the same as demurrage?
No. Storage is charged by the terminal or port for space, while demurrage is charged by the carrier for its container. A delayed container can attract both at the same time.
Sources
Official and primary sources used for this page. Rules change, so check the source for the latest version.
This guide is general information, not legal, tax or customs advice. Rules and rates change; confirm the requirements for your shipment with your coordinator or the relevant authority.
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Demurrage vs detention: what is free time, what does it cost and how do you avoid it?
Demurrage is charged while your full container sits in the terminal beyond free time; detention is charged while you keep the carrier's container outside beyond free time. This guide explains how free time is counted, what drives the bills, why they appear even when you did nothing wrong, and how to avoid and dispute them.
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