Demurrage (demuraj) is the container usage charge the shipping line collects for each day that a container discharged from a vessel on import, or brought to the terminal for loading on export, remains in the terminal yard after the free time granted by the line has expired. On imports it is usually paid by the consignee, and on exports usually by the shipper.
What is demurrage charged for?
The container is the shipping line's equipment (COC) and must stay in circulation to earn revenue. Every container waiting at the terminal is an asset the line cannot use for a new booking. Demurrage is compensation for this loss. Three items must be distinguished:
| Item | Where does it arise? | Who charges it? |
|---|---|---|
| Demurrage | While the container is in the terminal yard, after free time ends | Shipping line |
| Detention | While the container is outside the terminal, waiting at the consignee or shipper | Shipping line |
| Storage (ardiye) | For the cargo or container occupying space at the terminal | Port / terminal operator |
Some shipping lines combine demurrage and detention under a single merged free time. The difference is explained in the demurrage vs detention entry, and the terminal charge in the storage charge entry. If the shipper's own container (SOC) is used, no line demurrage arises, but terminal storage still applies.
In ship chartering, the same word means something different: compensation paid when a vessel exceeds the agreed loading or discharging time (laytime). In Turkish law this concept is known as sürastarya.
How are free time and charges calculated?
The shipping line grants a few days of free time, counted from discharge on imports and from gate-in at the terminal on exports. The period varies by port, line, container type and customer agreement. Once it expires, charges run per day in tiers: the first tier is relatively low, and subsequent tiers are higher. For special equipment such as reefer, flat rack and open top containers, the daily charge is higher than for a standard container.
Example: If a container with 7 days of free time leaves the terminal on the 12th day after discharge, 5 days of demurrage are invoiced. How the days are counted is stated in the line's tariff, and the calculation follows that tariff. Many tariffs are based on calendar days, meaning weekends and public holidays also count. For a vessel arriving just before a religious holiday, free time runs out faster than expected because customs and inland haulage slow down.
Who pays demurrage?
- Import: The party shown as consignee on the bill of lading. The container is usually not released until demurrage is paid.
- Export: The shipper who delivers the container to the terminal early or whose loading is cancelled.
- Sales contract: Incoterms do not regulate demurrage; which party between buyer and seller bears it should be written separately into the contract.
Disputes are possible for delays caused by the shipping line. The US Federal Maritime Commission (FMC) rule that came into force in 2024 requires demurrage and detention invoices to be issued within 30 days of the date the charge last accrued, and the billed party to be given at least 30 days to dispute. This rule applies only to US trade, but it is a good example of what information to look for on an invoice.
How can demurrage be avoided?
- Prepare the bill of lading, commercial invoice, origin and conformity documents before the vessel arrives.
- Clarify the GTİP (Turkish HS/tariff code), import permits and customs declaration in advance; for timing see the how long customs clearance takes entry.
- Pay freight and local charges on time and obtain the delivery order (ordino) early.
- Plan the truck that will collect the container according to the vessel's arrival.
- For cargo where a long customs process is expected, negotiate extra free time at the booking stage.
- On exports, deliver the container to the terminal close to, but before, the cut-off date.
In container transport, Voltim Global plans collection from the port and on-site delivery according to the vessel's arrival; the document schedule is set up taking free time into account.