Demurrage

In logistics, delays can be costly. One of those costs is called demurrage. If you’ve seen this term on shipping invoices or in port discussions, you’re not alone. Understanding how it works can help avoid unwanted surprises.

Demurrage Meaning

Demurrage refers to the charge a shipper pays when cargo stays at a terminal or port longer than the agreed time. Once the free time ends, daily charges start building up.

This fee is meant to keep shipments moving and avoid congestion at ports or container yards.

Why Does Demurrage Happen?

Delays happen for all kinds of reasons. Some common ones include:

1. Late document submission

2. Customs clearance issues

3. Truck not available to pick up cargo

4. Warehouse not ready to receive goods

When goods sit too long, the terminal or carrier charges demurrage to cover the extra space and time.

What Is Demurrage Used For?

People often ask what is demurrage used for. The main goal is to discourage delays at ports and keep freight moving efficiently.

It also covers the cost of using storage or equipment beyond the allowed time. For businesses, it’s a financial push to plan ahead and stay on schedule.

Demurrage Charges in Shipping

Demurrage charges vary based on the port, carrier, and how long the delay lasts. Most carriers offer a few days of free time. After that, costs can grow daily.

For example, the first two days might be charged at $100 per day. After that, the fee might increase to $200 or more.

Understanding shipping demurrage helps you avoid these added costs through better coordination and visibility.

How to Avoid Demurrage

Avoiding demurrage charges starts with preparation. Here are a few tips:

1. Confirm delivery dates and pickup plans early

2. Make sure all documents are submitted on time

3. Communicate clearly with your customs broker or freight forwarder

4. Monitor port schedules and container status closely

Final Thoughts

Demurrage is one of those hidden costs that can add up fast if you’re not ready.

At Newl, we help businesses manage timelines, documents, and pickups to reduce these types of risks. Our team stays in sync with carriers and terminals, so your freight keeps moving without unnecessary fees.

Frequently Asked Questions

1. Is demurrage the same for all shipping lines?

No, it differs by carrier, port, and even region. Always check the terms before booking.

2. Are charges applied on weekends or holidays?

In many cases, yes. Unless the port offers a waiver, charges may apply even when operations are closed.

3. How is demurrage different from detention?

It refers to charges at the terminal. Detention is charged when containers are held outside the terminal beyond free time.