Before we venture to find that answer, let’s try and get clarity on the terms “demurrage” and “detention”. Because many people struggle with understanding the difference between demurrage and detention and even their meaning, it becomes very frustrating to receive their freight invoice and not understand all of the charges.
Definition: Demurrage and Detention
Demurrage: It is a charge raised when the full container is not moved out of the port/terminal for unpacking within the allowed free days offered by the shipping line. The charge is levied by the shipping line to the importer.
Detention: Also known as a per diem fee, is raised when the importer has picked up the container for unpacking, but the empty container has not returned to the nominated depot within the agreed free-time. It is normal for a port to offer 3-5 days of free storage. However, each terminal has slightly different rules which can change at any time.