Demurrage is a per-day charge assessed when a loaded container sits in a marine terminal beyond the free time allowed for pickup. It is paid to the terminal operator (or to the carrier, who pays the terminal) and exists to push importers to clear containers off the yard quickly.
Demurrage clocks typically start when the container is available for pickup — after the vessel discharges, customs releases (no CBP hold), and the carrier releases (freight paid, BOL surrendered). Free time is usually 4–5 calendar days at U.S. West Coast ports, sometimes more at smaller terminals.
Once free time expires, charges escalate in tiers — for example:
- Days 1–5 past free time: $150/container/day
- Days 6–10: $300/day
- Days 11+: $500/day
A single container held two weeks past free time can rack up several thousand dollars in demurrage.
Demurrage is distinct from detention, which is what carriers charge for the container sitting at the importer's facility past its allotted return time. Together, demurrage and detention are sometimes called "D&D" or "per diem."
The Ocean Shipping Reform Act of 2022 (OSRA-22) gave the Federal Maritime Commission expanded authority to police "unreasonable" demurrage charges, and FMC rules now require carriers to itemize and justify D&D billing in plain language.