Demurrage, detention and storage in maritime shipping
These are three distinct charges that apply at different points in the supply chain. The confusion is common because they all penalise "extra time", but each one protects a different asset.
Demurrage (port overstay)
This is the charge levied by the shipping line when the container stays inside the port terminal beyond the agreed free time, either after discharge (import) or before loading (export).
- What it protects: terminal space and equipment turnover.
- When it starts: from the moment the container is discharged from the vessel until it leaves the terminal.
- Who pays: usually the importer/consignee (or the exporter, if the container arrives too early before the cut-off).
- Scale: usually progressive; each tier of days is more expensive.
Detention (container overstay)
This is the charge levied by the shipping line when the container has already left the terminal and remains in the customer's possession (at their warehouse, in inland transit, etc.) beyond the free time, until it is returned empty to the designated depot or terminal.
- What it protects: the availability of the container as equipment owned by the shipping line.
- When it starts: from the container's exit from the terminal until its empty return.
- Who pays: the customer holding the container.
Storage
This is the charge levied by the port terminal (not the shipping line) for keeping the cargo or container on its premises once the terminal's free days have been used up.
- What it protects: terminal space.
- Who charges it: the terminal or port operator.
- Particularity: its time limits and rates are set by the terminal, not by the transport contract, so they may differ from those of the shipping line.
