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Demurrage is a charge for keeping a container inside the port or terminal after the free time expires. Detention is a charge for holding the carrier's equipment too long outside the terminal, at the consignee or during unloading. Both accrue per day, rise progressively, and after a couple of weeks of delay can exceed the value of the freight itself.
Demurrage versus detention: two different charges, two clocks
People mix these up, but they are separate counters. Demurrage hits you when the container sits at the port terminal longer than the free time allows, usually 3 to 7 days depending on the carrier and port. Detention starts once you take the container off the terminal but return the empty equipment too late. Sometimes both run at once or overlap. The rates are daily and progressive: the first days are cheap, then the rate jumps in tiers to force fast equipment turnaround.
Why it can exceed the freight
You pay freight once. Demurrage and detention accrue every day, including weekends and holidays when nothing is being unloaded. One bottleneck is enough: no unloading slot, incomplete customs paperwork, a customs inspection, no booked return slot. The container waits, the counter runs. On large, long delays the total can match or beat the cost of the transport. On top of that, the carrier may hold release of the cargo until the charges are settled. Actual rates depend on the carrier, port and country, so we always confirm them per route rather than guessing.
Three levers that genuinely cut the cost
Free time: when planning imports it pays to negotiate extended free time with the carrier, especially on recurring volumes. Slot booking: the unloading slot and the empty return deadline must be locked in before the container even arrives, not after. Customs planning: documents for customs clearance must be complete and checked in advance, because the most common cause of standstill is not a missing truck but a piece of paper that goes missing at the last minute. When you need transloading space or a buffer, a planned warehouse beats keeping goods sitting in the container.
How does OTSL keep deadlines and protects your budget?
We treat free time as a clock ticking from day one and plan backwards from the empty return date. We prepare the customs entry in parallel with the transport so the container never waits on a document. We book unloading and return slots ahead of time, and one coordinator watches the whole chain 24/7, so when a standstill risk appears we react the same day, not a week later. We combine transport, container handling and customs under one responsibility, so there is no gap where the demurrage counter grows because two companies are waiting on each other.
How can you stop the fee clock during prolonged unloading?
To effectively avoid extra charges, you must control the precise moment when the equipment is formally returned to the carrier. The standard free time for devanning a container delivered on a skeleton trailer is usually 2 hours. If you are handling a load weighing over 18000 kg or consisting of more than 24 pallets, the risk of exceeding this window increases by at least 50%. The operational solution is negotiating combined demurrage and detention with the ocean line for a minimum of 7 days, rather than splitting it into separate port and off-dock clocks.
- Submitting the customs clearance release reference to the haulier prior to terminal gate-in pauses terminal-side hold fees.
- Arranging a drop-and-hook trailer positioning gives you an additional 48 hours for warehouse unloading without incurring driver detention.
Keep in mind the operational boundary: this rule does not apply to hazardous goods (ADR) or temperature-controlled cargo in reefer containers. For these specialized shipments, lines strictly limit free quay time to a maximum of 24 hours, and detention charges accumulate immediately after crossing this threshold due to power plug-in requirements and terminal safety isolation rules.
Step by step
- Confirm free days. Verify carrier terms regarding port and equipment allowance before dispatching the cargo.
- Prepare customs documentation. Complete required import papers prior to the vessel reaching the destination port.
- Schedule container haulage. Book truck transport to remove the container from the port prompt upon arrival.
- Track port status. Monitor customs clearance progress and container positioning at the terminal continuously.
- Return empty equipment. Transport the emptied container back to the assigned carrier depot on time.
Definitions
- Demurrage: A charge applied by the carrier for keeping a container inside the port terminal past the agreed free time.
- Detention: A fee levied for holding the carrier container outside the terminal beyond the allowed timeframe.
- Free time: The designated period during which no equipment storage or detention fees are charged.
- Container terminal: A port facility structure designed for storing, handling, and loading shipping containers.
The OTSL role
OTSL coordinates port logistics and road transport to help avoid unexpected hold-up charges. Explore our road transport solutions and read more in our guide on machine stuck in a Dutch port and storage costs.
