What is demurrage and how can you avoid it? - Remar International English

In international ocean freight, any overlooked detail can cause delays that result in additional costs. This is why having a team of experts monitoring every stage of the process, including the risk of demurrage, is essential.

What is demurrage?

Demurrage is the charge imposed by a shipping line when a container remains at the port terminal beyond the established free time.

For example, if an import shipment arrives at the port and the shipping line grants 10 free days to pick up the container, demurrage charges will begin to accrue once that period expires.

The charge is typically applied per day and per container. However, the exact terms, free days, and rates depend on the shipping line, route, port, and contract.

Situations that can lead to demurrage

Incomplete or incorrect documentation.
Delays in customs clearance.
Failure to comply with regulations applicable to the goods.
Lack of coordination between the importer, freight forwarder, customs broker, carrier, and shipping line.
Issues with payments or cargo release.
Inspections by authorities.

Are demurrage and detention the same?

No. Although both concepts are related to container use, they refer to different charges:

Demurrage: This charge applies when the container remains at the terminal beyond the established free time.

Detention: This charge applies when the container has already been picked up from the port but is not returned empty to the shipping line within the agreed period.

How can you avoid demurrage charges?

Here are some recommended practices to help prevent demurrage charges:

Know the number of free days granted in advance.
Have all documentation ready before the shipment arrives.
Review the customs requirements applicable to the goods beforehand.
Closely monitor the shipment throughout the process.
Coordinate customs clearance and inland transportation in advance.
Maintain clear communication among all parties involved in the operation.

Proper logistics planning with the support of freight forwarding experts can help you reduce the risk of delays and avoid additional costs that could affect the profitability of your imports or exports.

At Remar International, we have more than 25 years of experience in international logistics, helping businesses coordinate their operations from start to finish.