Demurrage charges: what they are, what they cost, and how to get them back
Demurrage charges are per-container, per-day fees billed when your full container stays inside the terminal past its free time. The clock starts when the box becomes collectable — not at vessel discharge — and daily rates of roughly $75–$300 escalate in tiers. A meaningful share of these invoices contain carrier-, terminal- or customs-caused days that can be recovered.
The anatomy of a demurrage charge
Every demurrage line item is four numbers multiplied together: chargeable days × tiered daily rate × containers, plus the one variable that decides everything — when the clock started. The clock starts at availability (the release notification), not at discharge. Chargeable days are the days from availability to gate-out, minus your contractual free days. The daily rate comes from the carrier’s filed tariff and escalates: the longer the box sits, the more each day costs. Because each element is computed separately, an error in any one of them — a wrong start date, the wrong free-time allowance, the wrong tier — inflates the whole invoice.
| Element | What it should be | Where invoices go wrong |
|---|---|---|
| Clock start | Container availability / release notice | Charged from discharge date, inflating day count |
| Free time | Days in your service contract (overrides tariff) | Published tariff applied instead of contract days |
| Chargeable days | Availability → gate-out, minus free days | Weekends/holidays counted despite working-day free time |
| Daily rate | Correct tier for each chargeable day | All days billed at the highest tier reached |
What demurrage charges typically cost
A dry 40ft import box at a major gateway commonly accrues $100–$300 per day once free time expires, with top-tier days above $400 at congested ports. Ten containers stuck five days past free time is a $5,000–$15,000 invoice — and because tiers escalate, a single bad week during a customs exam can exceed the freight you paid for the whole shipment. Run your own numbers on the free demurrage calculator with per-port free-time rules for the world’s major gateways.
Which demurrage charges you should not pay
Not every day on the invoice is yours. The strongest dispute grounds, in order of how often they win:
- Clock started before availability. Days between discharge and the release notice are carrier/terminal side and are not chargeable to you.
- Terminal-caused delay. Closed gates, no appointments, crane breakdowns, congestion holds — if the terminal made collection impossible, the day is contestable.
- Carrier or customs holds. Exams, document holds and carrier-side releases you did not cause.
- Wrong free time or tier. Contract free days ignored, or the whole invoice billed at the top tier.
- Non-compliant invoice (US imports). Missing any of the 13 elements in FMC rule 46 CFR 541 eliminates the obligation to pay. Our invoice audit checks compliance line by line.
Holding a demurrage invoice right now?
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Demurrage charges — frequently asked questions
What are demurrage charges?
Demurrage charges are per-container, per-day fees the ocean carrier bills when a full container remains inside the port terminal beyond the free time in the tariff or service contract. They compensate the carrier for equipment that cannot be turned around and reused while your box sits behind the gate.
How much are demurrage charges per day?
Typical published tariffs run roughly $75–$300 per container per day for a dry 20ft or 40ft box, escalating in tiers — for example $100/day for days 1–4 after free time, then $175/day, then $250+/day. Reefer and special equipment price higher, and congestion-era tariffs at major gateways sit at the top of the range.
Who is responsible for paying demurrage charges?
The "merchant" on the bill of lading — usually the consignee on imports or the shipper on exports — is contractually responsible, even when the delay was caused by a customs broker, forwarder, trucker or the terminal itself. That mismatch between responsibility and cause is exactly why so many demurrage charges can be disputed.
What triggers demurrage charges?
The most common triggers are customs exams and document holds, unavailable terminal appointments, chassis shortages, trucker capacity, missed last-free-day tracking, and containers made available later than the discharge date without the invoice being corrected. Anything that keeps the full box behind the gate past free time triggers the meter.
Can demurrage charges be waived or refunded?
Yes. Carriers waive or refund charges where the delay was carrier-caused, terminal-caused or customs-caused: clock started before availability, gate closures or appointment scarcity prevented pickup, holds outside your control, or the wrong free time or tariff tier was applied. For US imports, an invoice missing any of the 13 elements required by FMC rule 46 CFR 541 eliminates the obligation to pay at all.
How do I dispute a demurrage charge?
Assemble the availability notice, gate-in/gate-out timestamps, appointment logs, customs hold records and your contract free-time clause. Recompute the invoice day by day against the filed tariff, identify non-merchant-caused days, and submit a written dispute citing the specific days and evidence within the carrier’s dispute window (often 30 days).
What is the difference between demurrage charges and detention charges?
Demurrage charges run while the full container is inside the terminal; detention charges run while the carrier’s container is outside the terminal in your possession, between gate-out and empty return. Same free-time logic, opposite sides of the gate.
Related: demurrage vs detention · dispute guides by carrier · free-time rules by port