How to Avoid Demurrage & Detention Charges?

Unexpected Hidden Charges in FCL Sea Freight – Have You Been Charged Before?

Has your freight forwarder ever told you:
“Your container has some extra charges”?

Or maybe you've heard business friends complain:
“My container is still stuck at customs... Looks like I have to pay extra again!”

But are these port “charges” unavoidable? Or can they actually be prevented?

Today, let’s break down what D&D charges are, and why your container might be incurring them without you realizing!

What Is D&D?

D&D stands for Demurrage and Detention – two types of common fees in international logistics.

Here’s a simple analogy:
Imagine you ordered a takeaway coffee, but got too busy and picked it up late. When you arrive, the café charges you an extra “holding fee” – because your cup took up counter space too long. Frustrating, right?

The same thing happens in international shipping – except your “coffee” is a shipping container, and the “extra charge” is called Demurrage or Detention.

If you often ship by Full Container Load (FCL) and these terms sound unfamiliar, your logistics costs may be quietly increasing without you knowing!

Demurrage – Staying Too Long at the Port

Demurrage happens when your container sits too long at the destination port. Ports offer a free storage period (called Free Time) for you to clear customs and pick up your cargo. But if you exceed this time, the port starts charging you – that’s Demurrage.

Example:
Your container arrives on March 1. The port offers 5 days free storage, so you must clear and pick up the goods by March 6.
But due to document delays, you only pick it up on March 8 – now you’ll be charged 2 days of Demurrage.

Detention – Delay Returning the Empty Container

This is different from Demurrage. Detention is charged when you’ve picked up the goods but didn’t return the empty container to the shipping line on time.

Shipping companies need to rotate containers efficiently. If you hold on to one too long, they’ll charge you Detention fees.

Example:
You pick up your FCL container from the port on March 8. The shipping line gives you 3 days Free Time to return the empty container – by March 11.
But you return it on March 15 – that’s 4 days of Detention fees.

How Are D&D Charges Calculated?

D&D rates vary depending on the shipping line and their rate table. There’s no universal pricing – so the amount you pay depends on the carrier and number of delayed days.

How to Avoid Demurrage & Detention Charges?

Plan ahead: Know the Free Time at your destination port and the carrier’s container return deadlines. Ensure tight coordination for customs clearance and delivery.

Choose a reliable freight forwarder: A good forwarder can help streamline your pickup and return process – avoiding unnecessary charges.

Stay in communication: If delays happen due to customs or other issues, inform the shipping line early to request possible extensions.

Whether you’re in import/export, cross-border eCommerce, or international shipping, understanding D&D charges is crucial to controlling supply chain costs and running a smooth business.

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