Explainer
Demurrage and detention
Demurrage is charged when a container sits too long inside the terminal. Detention is charged when the container sits too long outside it. Both run daily, both escalate, and together they are the fastest-growing cost in a disrupted supply chain.
By The Retail Ledger · September 27, 2026
Free time and the clock
Each charge comes with a period of free time, negotiated in the carrier contract, after which a daily rate applies, often on a rising scale. The clock does not care why the container has not moved. Customs holds, missing documents, a full warehouse and a labor shortage all produce the same invoice.
The most expensive version is the one where both run in sequence: demurrage while the box waits in the terminal, then detention while it waits at the warehouse.
Why it hits bulk importers hardest
A large lot arriving over many containers needs intake capacity to match its arrival rate. If the warehouse cannot unload at the rate the containers land, the surplus becomes detention, and the cost lands on the party that controls the delivery schedule. That is a practical reason to stage deliveries rather than accept a schedule set by the seller, as in warehouse throughput.
Reducing it
Negotiate free time up front rather than disputing charges later, since free time is a contract term and demurrage invoices rarely move. Pre-clear customs where possible. Match arrival rate to intake rate. And track which containers are approaching the end of free time daily, because these charges are almost entirely avoidable and almost never avoided.
Questions
What is the difference between demurrage and detention?
Demurrage applies while the container sits inside the terminal; detention applies while it is out of the terminal and not yet returned.
Does the reason for the delay matter?
Generally not. The charge accrues regardless of cause once free time expires.
How is it best managed?
By negotiating free time in the carrier contract and by matching container arrival rates to actual unloading capacity.
Related: tariffs and landed cost.