{"id":11202,"date":"2018-01-19T16:03:05","date_gmt":"2018-01-19T16:03:05","guid":{"rendered":"https:\/\/www.tradefinanceglobal.com\/?page_id=11202"},"modified":"2025-01-08T15:59:17","modified_gmt":"2025-01-08T15:59:17","slug":"demurrage","status":"publish","type":"page","link":"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/demurrage\/","title":{"rendered":"Demurrage &#8211; Meaning &#038; Charges (2024 Guide)"},"content":{"rendered":"\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-header-without-image d-flex flex-direction-column justify-content-center\">\n    <h2 class=\"fs-32 fw-700 fs-xs-28 not-for-table-content\" id=\"heading-demurrage-meaning-charges-2024-guide\">\n        Demurrage &#8211; Meaning &#038; Charges (2024 Guide)    <\/h2>\n    <div class=\"d-grid grid-col-2 grid-col-xs-1\">\n                            <div class=\"\">\n                <div>Last updated on 08 Jan 2025<\/div>\n                <div>19 Jan 2018 . 6 min read<\/div>\n            <\/div>\n            <\/div>\n    <\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Demurrage-\u2013-Meaning-Charges-2024-Guide-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/><\/figure><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #f2f5f7 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-most-popular\">Most Popular<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/\">\n        Introduction to Freight Forwarding      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/difference-between-igm-bill-of-entry\/\">\n        Import General Manifest (IGM) &#038; a Bill of Entry      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/fcl-full-container-load-versus-lcl\/\">\n        Full Container Loads vs Less than Container Loads      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/inbound-logistics-definition\/\">\n        Inbound Logistics      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/incoterms\/\">\n        Incoterms\u00ae 2020 Rules      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<div class=\"wp-block-columns country-quick-link is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #ebf5f4 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-modes-of-transport\">Modes of Transport<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/air-freight\/\">\n        Air Freight      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/container-shipping\/\">\n        Container Shipping      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/ocean-freight\/\">\n        Ocean Freight      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/air-cargo-manifest\/\">\n        Air Cargo Manifest      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #e5f5ff !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-documentation-processes\">Documentation &#038; Processes<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/bill-of-lading-bl-bol\/\">\n        Bill of Lading (BL)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/demurrage\/\">\n        Demurrage      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/telex-release\/\">\n        Telex Releases      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/reefer-containers\/\">\n        Reefer Containers      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/what-is-igst-sgst-and-cgst\/\">\n        IGST, SGST &amp; CGST      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/marine-insurance\/\">\n        Marine Insurance      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #E6FAFE !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-logistics-management\">Logistics Management<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/what-is-cfs\/\">\n        Container Freight Stations      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/what-is-cy-cy\/\">\n        Container Yards (CY)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/dsv-tracking\/\">\n        DSV Tracking      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/shipping-management-software\/\">\n        Shipping Management Software      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/explained-port-and-starboard\/\">\n        Port &amp; Starboard      <\/a>\n      <\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"bg-light-blue d-flex gap-16 h-auto p-16 rounded xs-flex-direction-column\">\n    <div class=\"\">\n    <img decoding=\"async\" style=\"min-width:100px;max-width: 150px\" src=\"https:\/\/secure.gravatar.com\/avatar\/e76723ef35540b976c89c84418177c23?s=160&#038;d=mm&#038;r=g\" class=\"w-100 rounded\">\n  <\/div>\n  <div class=\"col-span-2 col-span-xs-1\">\n    <div class=\"d-flex flex-direction-column gap-16 fs-16 justify-content-between\">\n      <div class=\"fs-16 fw-700\">Brian Canup<\/div>\n      <div class=\"fs-14 fw-400 elipsise-2-line\" title=\"Brian Canup is a former Editorial &amp; Research Assistant at Trade Finance Global (TFG). He graduated with an MA in International Political Economy from King's College London, and a BA in Political Science from the University of Wisconsin-Madison.\">\n        Brian Canup is a former Editorial &amp; Research Assistant at Trade Finance Global (TFG). He graduated with an MA in International Political Economy from King&#8217;s College London, and a BA in Political Science from the University of Wisconsin-Madison.      <\/div>\n      <div>\n        <a class=\"text-black fs-12 small-link-arrow-right\" href=\"https:\/\/www.tradefinanceglobal.com\/posts\/?author=491\">\n          <span>\n            Latest Post          <\/span>\n        <\/a>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n<div style=\"min-height:100px!important;\" class=\"block-cta max-w-100 p-32 h-auto rounded sm-w-60 dark-mode bg-black align wp-block-acf-block-cta\">\n  <h4 id=\"heading-access-trade-receivables-and-supply-chain-finance\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n    Access trade, receivables and supply chain finance  <\/h4>\n  <p class=\"block-subtitle dark:color-white\">We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.<\/p>\n  <a href=\"https:\/\/www.tradefinanceglobal.com\/get-trade-finance\/\" class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n    <span>Get Started<\/span>\n  <\/a>\n<\/div>\n\n\n<p><\/p>\n\n\n<div class=\"block-cta p-24 h-auto rounded\">\n    <h4 id=\"heading-\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n      <\/h4>\n  <p class=\"fs-16 fw-400 dark:color-white\">Download the incoterms guide<\/p>\n  <div class=\"mb-20\">\n    <img loading='lazy' alt='Short-Incoterms-Guide-724&#215;1024' style='width:auto; height:200px'  width='auto' height='auto' src='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-150x150.jpg' srcset='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-212x300.jpg 212w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-320x453.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-370x523.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-414x586.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-141x200.jpg 141w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-177x250.jpg 177w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-115x162.jpg 115w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-112x159.jpg 112w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-87x123.jpg 87w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1-134x190.jpg 134w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/Short-Incoterms-Guide-724x1024-1.jpg 724w' \/>  <\/div>\n      <a href=\"https:\/\/www.tradefinanceglobal.com\/login\/?redirect_url=https%3A%2F%2Fwww.tradefinanceglobal.com%2Fwp-json%2Fwp%2Fv2%2Fpages%2F11202\"  class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n      <span>Download<\/span>\n    <\/a>\n    <\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-contents\">Contents<\/h2>\n\n\n<div class=\"block-table-content h-auto bg-white auto\">\n    <ul class=\"table-content\"><\/ul><\/div>\n\n\n<p><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p class=\"bg-tale rounded p-24 h-auto\" style=\"font-size:16px\">Traders often encounter unexpected charges while importing or exporting their respective goods. When it comes to&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/\">shipping<\/a>, a common unexpected cost can come from demurrage.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-demurrage\">What is demurrage?<\/h2>\n\n\n\n<p style=\"font-size:16px\">Demurrage is a result of a failure to abide by the rules agreed to in a charter agreement. Specifically, it is when a charge is payable to the owner of a chartered ship on the failure to load or discharge the ship within an agreed time period.<\/p>\n\n\n\n<p style=\"font-size:16px\">There are a set number of \u2018free\u2019 days for importers and exporters to time to get goods in and out of ports and the logistics involved in this.<\/p>\n\n\n\n<p style=\"font-size:16px\">The charges will be per day, will be paid to the&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/shipping-management-software\/\">shipping<\/a>&nbsp;company and will be specified in the contract with your shipping company.<\/p>\n\n\n\n<p style=\"font-size:16px\">On top of rising freight costs, these extra charges can affect the profitability of your trade. Therefore it\u2019s important to understand what demurrage is to help maintain profitability in your trade transaction.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-demurrage-for-importers\">Demurrage for importers<\/h3>\n\n\n\n<p style=\"font-size:16px\">This will be the time period from container arrival at the port terminal from the ship through to release of the container from the port terminal. The demurrage charge will be if the container remains in port after the free days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-demurrage-for-exporters\">Demurrage for exporters:<\/h3>\n\n\n\n<p style=\"font-size:16px\">This will be the time container arrives at the port for export, until the&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/container-shipping\/\" target=\"_blank\" rel=\"noreferrer noopener\">container<\/a>&nbsp;is loaded onto the ship. The demurrage charge will be if the container remains in the port terminal after the free days.<\/p>\n\n\n\n<p style=\"font-size:16px\">Demurrage charges are put in place to incentivize importers to move goods through and pick up goods from the port sooner, and exporters to not bring goods to the port too early.<\/p>\n\n\n\n<p style=\"font-size:16px\">Having a hold up of goods in containers means that the containers can\u2019t be used by the shipping company, therefore shippers are losing potential revenue streams.<\/p>\n\n\n\n<p style=\"font-size:16px\">It\u2019s important to note that shippers make the majority of their revenue from moving freight, not from these charges.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-calculate-your-costs\">Calculate your costs<\/h3>\n\n\n\n<p style=\"font-size:16px\">To calculate the cost of demurrage on a particular shipment, check out&nbsp;<a href=\"https:\/\/sg.one-line.com\/d-and-d-calculator\" target=\"_blank\" rel=\"noreferrer noopener\">this demurrage and detention calculator<\/a>. Simply enter the details of your shipment, the estimated discharge date, and the estimated truck gate-out day, and the calculator will let you know what your charges should be.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-prevent-demurrage-charges\">How to prevent demurrage charges<\/h2>\n\n\n\n<ol class=\"fs-16 wp-block-list\">\n<li style=\"font-size:16px\"><strong>Understand shipping contract:&nbsp;<\/strong>Understand and negotiate contracts with the shipper. Look through the charges and make sure you will be able to meet the terms. If you\u2019re expecting delays, attempt to ask for extra free days.<\/li>\n\n\n\n<li style=\"font-size:16px\"><strong>Understand contract with buyer and seller:&nbsp;<\/strong>In your contract with the importer or exporter, you should understand what roles and responsibilities you have in the shipment of goods. If you need help with terms in the commercial trade contract, go to our&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/incoterms\/\">incoterms<\/a>&nbsp;page to help.<\/li>\n\n\n\n<li style=\"font-size:16px\"><strong>Pre-clear customs:&nbsp;<\/strong>Understand the customs clearance process and port regulations, and provide the correct documentation to smoothen the process.<\/li>\n\n\n\n<li style=\"font-size:16px\"><strong>Reliability of land courier:&nbsp;<\/strong>Investigate your land couriers\u2019 rates and reliability, keeping in mind loading and unloading times and that of comeptitors.<\/li>\n\n\n\n<li style=\"font-size:16px\"><strong>Have a backup:&nbsp;<\/strong>Have a backup land courier for the movement of goods and containers. Investigate whether other ports (with less congestion) are available if demurrage is the issue. Or if the detention is a concern, check availability of space availability at container drop-off points.<\/li>\n\n\n\n<li style=\"font-size:16px\"><strong>Consider using SOCs rather than COCs:&nbsp;<\/strong>Using carrier-owned containers (COC) is a convenient way to transport shipments of goods around the world. However, they open you up to the possibility of extra charges if the exact terms are not carried out. Shipper-owned containers (SOC), while requiring an initial investment in the container itself, can reduce long-term additional charges and make budgeting easier. You don\u2019t have to worry about paying late fees when you just buy the book.<\/li>\n<\/ol>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"438\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-1024x438.jpeg\" alt=\"\" class=\"wp-image-106036\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-1024x438.jpeg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-300x128.jpeg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-768x328.jpeg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-700x300.jpeg 700w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-320x137.jpeg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-370x158.jpeg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-414x177.jpeg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-600x257.jpeg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-372x159.jpeg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-450x192.jpeg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-380x162.jpeg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021-285x122.jpeg 285w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/demurrage-page-2021.jpeg 1230w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Similar charges and fees<\/h2>\n\n\n\n<p style=\"font-size:16px\">Demurrage is often confused with Detention. Detention is a charge for not returning the empty container, when the container is being used in transport outside of the port terminal, to the nominated port or container yard after the \u2018free days\u2019.<\/p>\n\n\n\n<p style=\"font-size:16px\">This is the time when the container is outside the terminal and unusable by the shipper.<\/p>\n\n\n\n<p style=\"font-size:16px\">On the other hand, then, demurrage is related to the time the container is inside the port terminal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Detention for importers<\/h3>\n\n\n\n<p style=\"font-size:16px\">During the period that the importer has picked up the full container from the port terminal and returns the empty container to the shipper\u2019s specified point. The charges will be based on how many days are over the free days.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"473\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-1024x473.jpg\" alt=\"\" class=\"wp-image-106037\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-1024x473.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-300x138.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-768x355.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-320x148.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-370x171.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-414x191.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-600x277.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-372x172.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-450x208.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-351x162.jpg 351w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-344x159.jpg 344w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-266x123.jpg 266w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1-285x132.jpg 285w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-charges-from-the-importing-side-1536x709-1.jpg 1300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Detention for exporter<\/h3>\n\n\n\n<p style=\"font-size:16px\">The time period from the pick-up of the empty container until the full container is at the terminal. The charges will be based on how many days are over the free days.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"473\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-1024x473.jpg\" alt=\"\" class=\"wp-image-106038\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-1024x473.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-300x138.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-768x355.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-320x148.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-370x171.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-414x191.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-600x277.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-372x172.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-450x208.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-351x162.jpg 351w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-344x159.jpg 344w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-266x123.jpg 266w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1-285x132.jpg 285w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Demurrage-and-detention-explained-from-the-exporting-side-of-the-shipment-1536x709-1.jpg 1300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p style=\"font-size:16px\">We\u2019ve put together an in-depth guide on&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/demurrage-versus-detention\/\">the difference between detention and demurrage here<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why is demurrage important now?<\/h2>\n\n\n\n<p style=\"font-size:16px\">Post-pandemic demurrage and detention charges have increased.<\/p>\n\n\n\n<p style=\"font-size:16px\"><em>Container-xChange f<\/em>ound that in from 2020-2021 the average demurrage and detention charges reached were up 104% for two-week fines at the top-20 largest world ports.<\/p>\n\n\n\n<p style=\"font-size:16px\">Shipping companies are charging higher detention and demurrage at ports, in an attempt to free up containers for other ports with fewer delays.<\/p>\n\n\n\n<p style=\"font-size:16px\">There are delays for ships waiting to unload containers into ports, congestion at terminals, and delays for land couriers.<\/p>\n\n\n\n<p style=\"font-size:16px\">Delays causing charges experienced over the period 2020-2021 are pandemic, which has been exacerbated by an excess demand for imports and exports as pandemic restrictions have eased.<\/p>\n\n\n\n<p style=\"font-size:16px\">Labor shortages, through quarantine\/public health rules, reduce the volume of containers ports are able to load-unload and clear through customs. This port congestion prolongs the time of containers port leading to demurrage charges. This also leads to a lack of containers available for ships to use.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Common causes of delay<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Common causes:<\/h3>\n\n\n\n<ul class=\"wp-block-list\" style=\"font-size:16px\">\n<li style=\"font-size:16px\">Issues with customs clearance. For example, delays may be caused by incorrect documentation.<\/li>\n\n\n\n<li style=\"font-size:16px\">Port strikes that lead to labour shortages.<\/li>\n\n\n\n<li style=\"font-size:16px\">Port congestion causes delays in processing and moving containers.<\/li>\n\n\n\n<li style=\"font-size:16px\">Weather conditions affecting the functioning of the port.<\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\">It\u2019s important to stay vigilant of these factors to save unforeseen costs.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are demurrage rates?<\/h2>\n\n\n\n<p style=\"font-size:16px\">Demurrage rates are the fee (generally a per container per day fee) that shipping lines charge on containers that are left in the port yard for too long before being collected.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How long does it take before demurrage charges are applied?<\/h2>\n\n\n\n<p style=\"font-size:16px\">Demurrage will only be applied after a set number of free days have elapsed. Each port facility has its own standards for the number of free days that are allocated and this figure is negotiable on a contractual basis. Generally, it is anywhere between 3 and 7 days.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Who has to pay demurrage?<\/h2>\n\n\n\n<p style=\"font-size:16px\">Demurrage is paid by the importer or exporter to the shipping line. Whether it is the importer or exporter paying will depend on whether the fee is charged at the beginning or end of the shipping journey.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How much is demurrage per day?<\/h2>\n\n\n\n<p style=\"font-size:16px\">Demurrage charges vary as they are determined by the carrier, the terminal, and the contract.<br>It is usual for the charges to be anywhere between $75 and $300 per container per day; however, after a few days, the charges can become more significant.<br>For example, if a shipment of 10 containers is left for just 5 extra days, the total fee would amount to $3750.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the reasons for demurrage?<\/h2>\n\n\n\n<p style=\"font-size:16px\">There are many possible reasons for demurrage to be charged. Among others, this long list can include:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Delays due to incorrect documentation<\/h3>\n\n\n\n<p style=\"font-size:16px\">Collecting goods from the port requires the consignee to have the correct documentation. If they have incorrect documents they will not be prepared for customs clearance. This will cause them to will miss pickup and ultimately be charged demurrage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Delays due to late receipt of documents<\/h3>\n\n\n\n<p style=\"font-size:16px\">Occasionally, the consignee does not have the documentation in time to clear customs and collect their goods. This will lead to the goods being in port longer and demurrage being charged.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Delays due to loss of documents<\/h3>\n\n\n\n<p style=\"font-size:16px\">As with all other document errors, losing documents will hinder a consignee\u2019s ability to collect their goods from the port in time, which will ultimately lead to demurrage charges.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Delays due to customs clearance or cargo inspection<\/h3>\n\n\n\n<p style=\"font-size:16px\">Even when all of the documentation is in order, goods may still be delayed passing through customs for any number of reasons. These delays, even if no fault of the shipper or consignee, will still lead to demurrage being charged.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Delays due to receiver being unreachable<\/h3>\n\n\n\n<p style=\"font-size:16px\">Demurrage can be charged when the consignee (the person who is responsible for receiving the goods) is not able to be reached. This can lead to the goods remaining in the port for longer than their agreed free days and ultimately the port charging demurrage.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Testimonials<\/h2>\n\n\n\n<p class=\"bg-anti-flash-white rounded p-24 h-auto\" style=\"font-size:16px\">An example of this is when a charter agreement specifies that the time for loading is a 24 hour specific time slot. However, due to the ship being understaffed and loading being delayed by weather and other unforeseen events it means that the loading takes 40 hours. This would mean that the shipper is liable to pay penalty costs in relation to the shipment.<br><br>\u2013 John B, Metals Trader.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column bg-tale rounded p-24 h-auto is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading\"><strong>Case Study<\/strong><\/h3>\n\n\n<div class=\"block-content align bg-white rounded p-24 h-auto wp-block-acf-block-content\"style=\"background-color: #FFFFFF;color: #002F4D;\"\n>\n    <p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-106047 size-full\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance.jpg\" alt=\"\" width=\"1280\" height=\"1280\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance.jpg 1280w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-300x300.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-1024x1024.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-150x150.jpg 150w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-768x768.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-320x320.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-370x370.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-414x414.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-200x200.jpg 200w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-250x250.jpg 250w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-162x162.jpg 162w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-159x159.jpg 159w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-123x123.jpg 123w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/Boat-and-Marine-Equipment-Finance-190x190.jpg 190w\" sizes=\"auto, (max-width: 1280px) 100vw, 1280px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h4><strong>Metals Distributor<\/strong><\/h4>\n<p>We were new to the import and export trade; especially trade finance. However, we had substantial orders and were importing machinery to Vietnam from\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/exports\/turkey\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">Turkey<\/a>. Trade Finance Global along with their partners helped us to understand when goods could be financed; what purchase orders were viable, the delivery mechanisms along with any demurrage penalties or other potential unforeseen costs.<\/p>\n<\/div><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<section class=\"full-width block-grid_topics dark-mode\" data-block=\"grid_topics\" data-theme=\"dark\">\n  <div class=\"block-topics\">\n    <h1 class=\"container w-auto fs-xs-20 mb-xs-20 not-for-table-content\"><\/h1>\n    <div class=\"control container w-auto clearfix topic-tabs position-relative\">\n              <ul class=\"tabs tabs-horizontal d-inline-block mb-30\">\n                      <li class=\"px-24 py-12 fs-16 fs-xs-14 active\"\n            data-post-type=\"post\"\n            data-source=\"topic\"\n            data-limit=\"14\"\n            data-include=\"\"\n            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bg-white fs-16 fw-700 pointer bordered dark:bg-maastricht-blue position-absolute rounded-md sorting-dropdown px-16 py-10\">\n        <span class=\"display-value d-block\">Latest<\/span>\n        <div class=\"border-light-blue bordered options-to-select overflow-hidden rounded-md w-100 d-hidden\">\n          <span class=\"d-block py-10 px-16 pointer single-option\"\n          data-value=\"title-asc\">A-Z<\/span>\n          <span class=\"d-block py-10 px-16 pointer single-option\" data-value=\"date-desc\">Latest<\/span>\n        <\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"block-wrapper clearfix overflow-hidden max-w-100\">\n    <\/div>\n\n    <div class=\"bottom-buttons d-flex clearfix container w-auto\">\n      <a href=\"\" class=\"custom-link button-standart button-standart-blue\">\n        <span><\/span>\n      <\/a>\n    <\/div>\n  <\/div>\n<\/section>\n\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Traders often encounter unexpected charges while importing or exporting their respective goods. When it comes to&nbsp;shipping, a common unexpected cost can come from demurrage. What is demurrage? Demurrage is a\u2026 <a href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/demurrage\/\" class=\"read-more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"author":491,"featured_media":113215,"parent":11166,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","ep_exclude_from_search":false,"footnotes":""},"categories":[851],"class_list":["post-11202","page","type-page","status-publish","has-post-thumbnail","hentry","category-freight-forwarding"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Demurrage: Meaning &amp; Charges Guide | Trade Finance Global<\/title>\n<meta name=\"description\" content=\"Demurrage is the failure to abide by the rules agreed to in a charter agreement, such as to load or discharge the ship by an agreed time.\" \/>\n<meta name=\"robots\" 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