Home » Logistics » Glossary » Demurrage

Demurrage

Demurrage refers to fees levied when a container is left in a terminal over its allotted “free-time” period. The responsibility for any incurred demurrage normally rests with the consignee, and full payment must be made in order for goods to be released. 

Demurrage fees incurred can be charged on per day or per container basis and are chargeable for both imports and exports. Additional charges may incur for chilled containers or increase after an X amount of days, charges details however are varied according to the port, carrier, terminals, and warehouse. 

For a less-than-container load (LCL), although demurrage will not be charged on the full container load (FCL), the carrier may still charge a fee depending on the amount of space the goods occupy at the container freight station (CFS) where deconsolidation was done. Common issues that may result in such charges include force majeure, customs inspections, shipment disputes, or incorrect or incomplete documentation.

Was this article helpful?

Leave a Comment

Your email address will not be published.