Definition
A charge for keeping a container inside the port/terminal beyond the allowed free time.
Demurrage accrues when a full import container sits in the terminal longer than the free days the carrier allows, or when an export box is delivered too early. It is charged per container per day and escalates over time.
It is distinct from detention, which applies once the container has left the terminal but is not returned empty in time. Both are common, avoidable cost leaks in forwarding operations.
Related terms
Detention
A charge for holding the carrier’s container outside the terminal beyond the free time before returning it empty.
Free Time
The grace period the carrier allows for using a container or terminal space before demurrage or detention applies.
Terminal Handling Charge (THC)
A fee charged by the port terminal for handling a container between the vessel and the yard.
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