Demurrage
The charge for a container staying in port beyond the free days granted by the shipping line.
Definition
Demurrage is the charge for using a container in port beyond the permitted period (usually after 5–7 free days). It builds up quickly — $50–150 per day.
The main cause is prolonged customs clearance. The remedy is preparing documents in advance — which starts with complete, accurate paperwork from you, the supplier.
How it works in practice
Demurrage starts accruing when a container stays in port longer than the line’s free period. The typical reason is customs: the documents are not ready when the vessel arrives, an inspector orders an examination, or there is not enough money on account for the payments.
Tranzit3 lodges the declaration in advance, before the vessel arrives, and keeps funds for payments on deposit so that the container leaves the port within the first days of free time. If an examination is ordered anyway, we agree its date with the port so as not to pay for storage and idle time at once.
Demurrage: frequently asked questions
How much does demurrage cost?
It depends on the line and the port: usually from $50–100 per day for a 20-foot container on a sliding scale — the longer the delay, the more expensive each extra day. After two weeks the total can equal the cost of the freight itself.
Can the free period be extended?
Yes, at booking: lines sell additional free days for a small surcharge on the rate. For cargo with lengthy customs clearance this is cheaper than paying demurrage after the fact.
Are demurrage and port storage the same thing?
No. Demurrage is the line’s charge for the container; storage is the port’s charge for space on the terminal. They accrue in parallel, each with its own free period.
Related terms and services
More in this section
Request a quote
Reply within 2 business hours