Shipping Line Demurrage Charges
Demurrage is the charge a shipping line makes when a container stays inside the port or terminal beyond its free time. We help you understand your bill, check it, and contest what should not be there.
What is shipping line demurrage?
Demurrage pays the line for the space and equipment your container occupies once the free period is over. On an import, the clock normally starts when the container is discharged from the vessel and stops when it leaves the terminal.
It is separate from detention, which starts after gate-out, and from terminal or CFS storage, which the port or CFS bills for the cargo itself. Check your invoice to see that the same days are not being charged twice under different names.
Free time and slab rates
Most tariffs follow the same pattern. Exact days and rates differ by line, port and container type, so use this as a guide to reading your bill.
| Period | What usually happens |
|---|---|
| Free days | No demurrage. Reefer and special equipment often get fewer free days than standard boxes. |
| First slab after free time | A lower per-day rate applies for a set number of days. |
| Second slab | The per-day rate steps up. |
| Later slabs | The highest per-day rate applies until the container leaves. |
Because rates rise in slabs, a few extra days at the end can cost more than all the earlier days combined.
Estimate your demurrage
Enter the discharge date, gate-out date, free days and a rate. For slab rates, run each slab separately and add them.
Estimate only. Day-count rules, holidays and slab rates are set by your line’s tariff, and the invoice is the final figure.
Common grounds to question a demurrage bill
A bill can be wrong, or right but unfair. These are the usual places we look.
Delivery Order released late
Free time kept running while the line was still processing the DO or the original Bill of Lading.
Manifest or IGM errors
A mistake or late amendment on the line’s side stopped you from filing or clearing.
Customs hold
The cargo was held for examination or a query. See customs demurrage.
Vessel and terminal disruption
Delayed arrival, congestion, gate closures or yard issues.
Wrong free time or start date
The invoice uses fewer free days, or an earlier start date, than your terms.
Force majeure
Strikes, weather or system outages that stopped the cargo moving.
How we handle a demurrage dispute
Verify the bill
We check free days, start date, rates and slabs against your contract and tariff.
Reconstruct what happened
We build the timeline from discharge to gate-out using your documents.
Write the representation
We present the grounds and evidence to the right person at the line.
Negotiate and settle
We work toward a reduced or waived figure and get the revised invoice in writing.
Frequently asked questions
What starts the demurrage clock?
For imports it normally begins at discharge from the vessel, though your booking or line tariff sets the exact rule. Check the terms that apply to your shipment.
Can demurrage be disputed?
Yes. Errors in dates, free days or rates can be corrected, and charges linked to delays outside your control can be put forward for waiver or reduction.
Can the line extend my free time?
Often, if you ask before free time ends and give a reason. A late request is much harder to win.
What happens if I do not pay?
The line may withhold the Delivery Order or hold the cargo until dues are cleared, and charges continue to grow. Raise the dispute early, and ask us about the best sequence.
How is demurrage different from detention?
Demurrage applies while the container is inside the terminal. Detention applies once it is outside, until the empty is returned. See shipping line detention.
Can my forwarder pass these charges on to me?
Often, yes, under the terms between you. We can review those terms and the underlying bill together.
Share your invoice. Get a straight answer.
Send the charges, container numbers and a short note on what caused the delay. We will tell you whether the bill looks contestable and what we would do next.
- +91-9004826348
- info@demurrageanddetentionconsultant.in
- 18/E, 2nd Floor, Rajabahadur Mansion, Ambalal Doshi Marg, Near BSE, Fort, Mumbai - 400001, India
