Demurrage vs. Detention vs. Storage: A Clear Guide to Port & Carrier Charges
Publish Time: 2025-08-22 Origin: Site
In international shipping, Demurrage, Detention, and Storage are critical fees that impact logistics costs. Here’s a breakdown:
1. Demurrage
Definition: Charges for containers not picked up from the port within the free time after unloading.
Charged by: Carrier (e.g., Maersk, COSCO).
Applies when: Exceeding Free Demurrage period (e.g., 3–7 days).
Example: If free time is 3 days, Day 4 incurs Demurrage.
2. Detention
Definition: Charges for late return of empty containers after pickup.
Charged by: Carrier.
Applies when: Exceeding Free Detention period (e.g., 7–10 days).
Note: Free Time = Free Demurrage + Free Detention.
3. Storage
Definition: Fees for containers overstaying at the terminal.
Charged by: Port terminal (not the carrier).
Key difference: Same timeframe as Demurrage but different collector.
Rigid: Usually non-negotiable and fixed in local currency.
Fee Structures & Rules
| Fee Type | Charged By | Currency | Negotiable? |
|---|---|---|---|
| Demurrage | Carrier | USD (mostly) | Sometimes |
| Detention | Carrier | USD (mostly) | Sometimes |
| Storage | Port Terminal | Local currency | Rarely |
Typical Tiered Pricing (e.g., Chinese Ports):
Days 1–7: Free
Days 8–15: CNY 55/day
Days 16–20: CNY 150/day
Days 21+: CNY 300/day
Pro Tips to Avoid Fees:
✅ Track deadlines: Know your free time for each port (e.g., South Africa: 21 days; Australia: strict).
✅ Pre-clear customs: Accelerate pickups to avoid Demurrage/Storage.
✅ Return empties fast: Detention clocks start once containers leave the port.
✅ SOC containers: Avoid carrier fees but still pay Storage.