Demurrage

Demurrage is a penalty fee charged by a shipping line (or terminal) when a container or vessel remains at the port/terminal beyond the agreed "free time" — the period during which use is included in the freight rate.

For containers, demurrage typically starts after 3-7 free days from discharge and rises in tiered bands (often US$50-200/day initially, doubling after 7+ days). For vessels, demurrage is paid by the charterer to the shipowner when loading/discharge takes longer than the time allowed in the charter party (laytime).

Demurrage is often confused with detention — they are different: demurrage applies while the container is still inside the port/terminal; detention applies after the container has left the port but hasn't been returned empty to the shipping line's depot within free time.

Both are major sources of supply-chain cost leakage. AI-augmented freight platforms can predict demurrage exposure per container and trigger preventive action — earlier discharge, repositioning, or contract re-negotiation — before charges accrue.