GlossaryEN1 min readUpdated: Jun 16, 2026
Billing for Detention and Demurrage
Distinguishing demurrage from detention matters in practice: demurrage accrues when a container remains at the terminal beyond its free time, while detention applies once the box is held off-dock longer than the agreed period.
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Source: https://www.flexport.com/glossary/detention-and-demurrage/
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Distinguishing demurrage from detention matters in practice: demurrage accrues when a container remains at the terminal beyond its free time, while detention applies once the box is held off-dock longer than the agreed period. Both charges are billed by the shipping line or terminal operator to the shipper, consignee, or freight forwarder, depending on the underlying contract. Free-time allowances differ by carrier and trade lane; a typical range is three to seven days, though this varies considerably. Forwarders monitor these timelines closely – late pick-ups or slow container returns can accumulate significant daily costs per unit with little warning. Getting the terminology right also matters when disputing invoices or renegotiating free-time terms with a carrier.
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