GlossaryEN1 min readUpdated: Jul 22, 2026
Demurrage
Demurrage is designed to keep port infrastructure moving: it is a daily charge imposed on an importer or exporter who holds a container at a port or terminal beyond the free time allowance granted by the carrier or terminal operator.
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Source: https://www.freightos.com/glossary/demurrage/
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Definition & Explanation
Demurrage is designed to keep port infrastructure moving: it is a daily charge imposed on an importer or exporter who holds a container at a port or terminal beyond the free time allowance granted by the carrier or terminal operator. Once that free period expires, fees begin to accrue and typically increase in escalating daily tiers. Demurrage is one of the most common sources of dispute between cargo owners and shipping lines, particularly during port congestion or customs delays that prevent timely container pickup. A rollover, where a container is shifted to a later sailing, can likewise use up the free time and trigger demurrage. It should not be confused with detention – which covers off-terminal container use after collection – or with storage fees charged by warehouse operators for goods held on their premises.
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