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Demurrage
Definition
Demurrage is a charge for a loaded container that stays at the marine terminal after its free time runs out.
In simple English
The container is still sitting at the port after its free days ran out, so the terminal or carrier charges for every extra day until it leaves.
What it means
The Federal Maritime Commission describes demurrage as accruing "when a container exceeds free time on a marine terminal."[1] Federal rules group demurrage and detention together as charges "related to the use of marine terminal space (e.g., land) or shipping containers," billed by ocean carriers, marine terminal operators or NVOCCs.[2]
- Container is discharged and becomes available at the terminal
- Terminal free time ends on the last free day; demurrage can start after it
- The loaded box is picked up (out-gated); demurrage stops
- Equipment free days run; detention (per diem) can start after them
- The empty is returned (in-gated); detention stops
On an import, demurrage generally runs from the end of the free time until the loaded box is picked up. How many free days apply and what the daily rate is come from the carrier's or terminal's tariff or the service contract, not from one national rule, which is why a compliant invoice has to show the free time, its start and end dates, the dates charged and the rate.[3] The invoice must be issued within 30 calendar days of when the charge was last incurred.[4]
The word is older than containers: the FHWA glossary still defines it for rail cars and ships held beyond a set loading or unloading time.[5]
Why it matters
Demurrage piles up in whole days while other things are being sorted out: a customs hold, a missing release, no pickup appointment or a receiver that is not ready. Knowing which clock is running tells you which move stops it; stopping it and disputing it are covered in demurrage vs. detention.
Example
A container becomes available at the terminal on a Monday and, under the tariff that applies, its last free day is Thursday. The receiver cannot take it until the following Wednesday. If the box stays put, demurrage runs from Friday until it is picked up; if it is pulled into a nearby warehouse before Thursday and unloaded, it stops sooner.
Related
Related terms
- DetentionDetention is a charge for holding equipment beyond the free time allowed: in ocean shipping, for keeping the...Glossary
- Free TimeFree time is the number of days a container can stay at the terminal, or stay out with the importer, before...Glossary
- Marine Terminal OperatorA marine terminal operator (MTO) runs the wharves, container yards and other terminal facilities that ocean...Glossary
- Pre-PullA pre-pull is picking up a container from the port before its delivery day and parking it at the trucker's...Glossary
- General OrderGeneral order (GO) is CBP custody for imported cargo that was not entered or released in time; the cargo is...Glossary
- ChassisA chassis is a wheeled trailer frame built to carry a shipping container over the road; the container is...Glossary
Related questions
- How Long Can a Container Stay at the Port?There is no single limit; three clocks apply. Commercially, a container can sit at the terminal for the free...Answer
- What Are the Different Types of Container Holds?A container can be held for unrelated reasons, each cleared by a different party. A customs hold is placed by...Answer
- What Happens After a Container Arrives at Port Newark?After the vessel discharges, the container has to be released by both Customs and the ocean carrier before...Answer
Related freight problems
Related guides
- Demurrage vs. DetentionWhere each clock starts and stops, and the FMC invoice rules.Guide
- Short-Term Freight Storage vs. DemurrageWhen pulling a box off-terminal costs less than waiting.Guide
- Chassis Split Fee, Pre-Pulls & Street TurnsDrayage accessorials: what each pays for and which move stops it.Guide
Sources
- Federal Maritime Commission, “Detention and Demurrage,” Government guidance. Accessed September 2026.
- Legal Information Institute, Cornell Law School, “46 CFR § 541.3, Definitions (demurrage and detention),” Federal regulation. Accessed September 2026.
- Legal Information Institute, Cornell Law School, “46 CFR § 541.6, Contents of invoice,” Federal regulation. Accessed September 2026.
- Legal Information Institute, Cornell Law School, “46 CFR § 541.7, Issuance of demurrage and detention invoices,” Federal regulation. Accessed September 2026.
- Federal Highway Administration, Office of Freight Management and Operations, “Freight Glossary,” Government glossary. Accessed September 30, 2026.
General operational information, not legal, customs or regulatory advice. Rules and rates change; confirm current requirements with the agency, carrier or contract that governs your shipment.