Demurrage

A fee charged when a container is held at a terminal beyond the allotted free time after discharge.

Port & carrier fees

TL;DR: This term is one of 37 definitions in the freight glossary, so the signal is the number it changes — not the acronym. It sits in the Port & carrier fees category and links to 3 related terms for adjacent freight math. Use the example below to turn the definition into a before/after calculation before you quote or clear cargo.

What it means

Demurrage is the penalty the terminal charges when a container sits on port property beyond its free time after discharge — typically 3 to 7 free days, after which a daily charge accrues. It is designed to keep cargo moving through congested ports, and it is where China-to-GCC importers most often bleed money, because demurrage is triggered by clearance delays: a missing SABER certificate in Saudi Arabia or a VAT dispute in the UAE can leave a box at Jeddah or Jebel Ali for weeks while fees rack up. Demurrage is charged by the terminal, is often uncapped, and is not covered by standard marine insurance. The practical defence is to complete compliance paperwork before the vessel arrives, not after.

Who pays / who bears risk

Who pays

Consignee (or their forwarder) pays for overstaying free time inside the port.

Who bears risk

Consignee bears the charge if cargo is not picked up in time.

Common misunderstanding

Demurrage (inside the terminal) is not the same as detention (outside with the container).

Why it matters

Demurrage is one of the fastest ways to erase freight savings — a container stuck at Jeddah or Jebel Ali for two weeks of clearance delay can incur hundreds of dollars in fees.

Example

A container discharged at Jeddah with 5 free days sits for 12 days waiting on a SABER certificate, accruing 7 days of demurrage at a daily terminal rate.

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