Demurrage vs Detention: How to Avoid Both

Demurrage and detention fees are two of the most common — and most costly — charges that shippers face when moving containers through ports. Understanding the difference between them and knowing how to avoid them can save your business thousands of dollars per month. This guide breaks down both fees and shares 7 proven strategies to minimize them.

What Is Demurrage?

Demurrage is a fee charged by the marine terminal when an import container sits at the port beyond the allotted free time. Free time typically ranges from 3 to 7 days, depending on the terminal and shipping line. After free time expires, the terminal charges a daily demurrage fee — often $75 to $300 per day for standard containers, increasing the longer the container sits.

Demurrage is essentially a storage fee: the terminal is charging you for taking up space in their yard. The clock starts when the container is discharged from the vessel and stops when it is picked up by a drayage carrier.

What Is Detention?

Detention is a fee charged by the shipping line (not the terminal) when a container is kept outside the port beyond the allotted free time. This typically applies to the time between when a drayage carrier picks up the container from the terminal and when the empty container is returned.

Free time for detention is usually 3 to 7 days. If you exceed it, the shipping line charges a daily detention fee — often $75 to $200 per day. Detention is essentially a rental fee: the shipping line is charging you for keeping their container too long.

Key Differences: Demurrage vs Detention

The main difference is who charges the fee and where the container is located. Demurrage is charged by the terminal while the container is inside the port. Detention is charged by the shipping line while the container is outside the port (with the trucking company or consignee).

Both fees can apply to the same shipment — demurrage if the container sits too long at the port before pickup, and detention if it’s kept too long outside the port before being returned empty.

7 Strategies to Avoid Demurrage and Detention

1. Arrange drayage early — Book your drayage carrier before the container arrives so pickup happens on day one of free time.

2. Monitor container availability — Use terminal websites or apps to track when your container is available for pickup.

3. Choose an asset-based carrier — Carriers with their own chassis pool (like Singh Trucklines) avoid chassis availability delays that cause demurrage.

4. Use dual transactions — Pick up an import container and drop off an empty container in the same trip to save time and reduce empty miles.

5. Plan transloading near the port — Devan containers quickly at a near-port facility like our Kent, WA warehouse to return empties fast.

6. Track free time — Keep a log of when free time starts and expires for every container so you never miss a deadline.

7. Work with an experienced dispatch team — A carrier with real-time terminal monitoring and proactive dispatch can prevent fees before they happen.

Frequently Asked Questions

What is the difference between demurrage and detention?

Demurrage is charged by the terminal while the container sits at the port. Detention is charged by the shipping line while the container is outside the port with the trucking company.

How much do demurrage fees cost?

Demurrage typically costs $75-$300 per day after free time expires, depending on the terminal and container type. Rates increase the longer the container sits.

How can I avoid demurrage at the Port of Tacoma?

Arrange drayage before the container arrives, use an asset-based carrier with their own chassis, and pick up the container on day one of free time. Singh Trucklines provides daily drayage at the Port of Tacoma — contact us for a quote.

What is free time at a marine terminal?

Free time is the period (usually 3-7 days) during which you can pick up a container without paying demurrage. It varies by terminal and shipping line.

Need help with your drayage or intermodal freight? Contact Singh Trucklines — CH Robinson’s #1 Intermodal Carrier (2025) — for a fast, competitive quote. Call +1 (253) 277-7784.