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Demurrage and Detention

Demurrage and Detention

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In maritime transportation, container filling and unloading processes are limited to certain limits. If the container is not delivered to the port or container warehouse empty within a specified period of time under the name of free time, the demurrage period begins. Depending on the tariff announced by the carrier in advance, a daily demurrage fee that increases in certain periods is applied.

On the other hand, detention cost is the expense incurred if the container taken out of the port does not return to the port within the free period. The difference between demurrage is that it defines the expense incurred outside the port, not in the port.