Delay, Demurrage and Detention
Delay, Demurrage and Detention
Delay, Demurrage and Detention concerns additional charges that may arise when vessel arrival delay, port congestion, customs delay, incomplete D/O procedures, late container pickup, delivery rescheduling, delayed devanning or late empty-container return causes the applicable Free Time to be exceeded.
A delay in ocean transport does not merely move the delivery date. Demurrage or Detention may arise depending on when the container becomes available, when it leaves the terminal, when devanning is completed and when the empty container is returned.
As a general operational distinction, Demurrage relates to a container remaining within the port or terminal beyond Free Time, while Detention relates to the period after the container leaves the terminal and before the empty container is returned.
However, the names, commencement dates, stopping events, free periods, counting methods and rates for Demurrage, Detention, Storage and Combined Free Time differ according to the shipping line, NVOCC, port, country, trade lane, container type and contract.
The applicable Tariff, Booking conditions, Arrival Notice, Free Time confirmation, B/L terms, invoice and individual instructions from the shipping line or NVOCC must therefore be reviewed for the specific shipment.
Scope of This Article
| Item | Covered in This Article | Covered in Other Articles |
|---|---|---|
| Demurrage | Container dwell within the terminal and expiry of Free Time | The underlying cause of delay is covered in each cause-specific article |
| Detention | The period from terminal pickup to empty-container return | Domestic-delivery incidents are covered in delivery articles |
| Free Time | Commencement, last free day, stopping event and counting method | Current carrier-specific Tariffs are governed by the relevant shipping line |
| Vessel delay | How pre-arrival delay affects pickup, delivery and return planning | ETA and post-arrival processing delay are covered in “Vessel Arrival Delay” |
| Delivery date | How receiving restrictions lead to Demurrage or Detention | Delivery confirmation is covered in “Delivery Date Rescheduling” |
| Storage and CFS charges | Whether they are separate from Demurrage and Detention | Terminal-specific rates are governed by the relevant Tariff |
| Estimated cost | Estimated calculation using excess days and tiered rates | The formal amount is shown in the carrier or NVOCC invoice |
| Extension and waiver | Initial handling of Free Time extension and reduction requests | Approval is determined individually by the shipping line or NVOCC |
| Cost allocation | Review based on cause, contract, notice and mitigation | The general framework is covered in “Additional Costs Due to Delay” |
| LCL cargo | Review of CFS storage rather than automatic application of container Detention | CFS operations and consolidation incidents are covered separately |
This article does not address every additional cost caused by delay. It focuses on Demurrage and Detention and the relevant container location, Free Time, commencement, stopping event, calculation and responsibility review.
Terminology and Calculation Differ by Shipment
| Variable Item | Possible Operation | Source to Review | Practical Caution |
|---|---|---|---|
| Charge name | Demurrage, Detention, Combined, Per Diem or Storage | Tariff, invoice and Free Time confirmation | Do not determine the charge solely from its name |
| Commencement | Discharge, terminal availability, Available Date or Gate-out | Carrier terms and terminal events | It may not be the vessel arrival date |
| Free period | Varies by container, cargo, port and contract | Booking, Arrival Notice and individual confirmation | Do not assume a standard number of days |
| Day counting | Calendar days, working days or specific holiday treatment | Tariff and service conditions | Review weekends and holidays |
| Rate | Fixed, tiered, size-based or special-equipment rate | Rate schedule and invoice | The daily rate may increase over time |
| Stopping event | Gate-out, empty return acceptance or system registration | EIR, depot receipt and system record | Physical action and system update may differ |
| Combined treatment | Demurrage and Detention managed under Combined Free Time | Individual agreement or carrier confirmation | Review the allocation between terminal and outside use |
Demurrage
Demurrage generally refers to a charge arising when an import container remains within the port or terminal beyond the applicable Free Time.
It may become relevant where a discharged container cannot be picked up because of customs, D/O, terminal appointment, vehicle or receiving-location issues.
The commencement of Free Time is not necessarily the same as the date on which the cargo owner considers the container practically available. The applicable carrier or NVOCC conditions must be reviewed.
Detention
Detention generally refers to a charge arising when a container has left the terminal but the empty container is not returned within the applicable Free Time or return deadline.
After pickup, the container is delivered, devanned and returned to the designated depot. Delay in receiving, unloading, distant delivery, depot congestion, return appointments or holidays may cause Detention.
The charge commonly stops when the designated depot accepts the empty container. The applicable acceptance time, EIR, system record and return-location conditions must nevertheless be confirmed.
Basic Difference Between Demurrage and Detention
| Item | Demurrage | Detention | Operational Review |
|---|---|---|---|
| Main location | Within the port or terminal | After terminal pickup | Confirm the current container location |
| Typical status | The laden container has not left the terminal | The container has left but the empty has not been returned | Confirm whether the container is laden or empty |
| Main cause | Customs, D/O, pickup, vehicle or receiving delay | Devanning, distant delivery or return delay | Identify the operation that exceeded the period |
| Main dates | Commencement, last free day and Gate-out | Gate-out, return deadline and actual return | Confirm event dates from records |
| Common stopping event | Terminal Gate-out | Acceptance of the empty container | Review the contractual stopping event |
| Main evidence | Terminal Event, EIR and pickup record | EIR, depot acceptance and return record | Compare the records with the invoiced period |
Difference from Storage Charge
| Charge | Typical Charging Party | Subject | Caution |
|---|---|---|---|
| Demurrage | Shipping line or NVOCC | Container dwell or use within the terminal | Review the carrier Free Time |
| Detention | Shipping line or NVOCC | Container use and late return after pickup | Review the empty-return deadline |
| Storage Charge | Terminal, CY or warehouse | Storage or occupation of the facility | It may arise in addition to Demurrage |
| CFS storage | CFS operator | Storage of LCL cargo within the CFS | Separate it from container Detention |
Free Time
| Review Item | Information Required | Source | Effect of Error |
|---|---|---|---|
| Charge type | Demurrage, Detention, Combined or Storage | Free Time confirmation and Tariff | Another charge may be overlooked |
| Free days | Number of free days | Booking, Arrival Notice or agreement | The last free day may be incorrect |
| Commencement date | Date from which counting begins | Tariff and terminal event | The charge may already be running |
| Counting method | Calendar or working days and holiday treatment | Rate conditions | Excess days may be miscalculated |
| Last free day | Final date for pickup or return without charge | Carrier confirmation | Pickup and return planning may fail |
| Rate | Daily, tiered and container-size rate | Tariff and quotation | The estimate may be understated |
| Stopping event | Action required to stop the charge | Conditions and EIR | The charge may continue after assumed completion |
| Extension or waiver | Deadline, evidence and approving party | Email, request and carrier response | The opportunity to request relief may be lost |
Possible Free Time Commencement Events
| Possible Event | Meaning | Practical Caution | Evidence |
|---|---|---|---|
| Vessel arrival | The vessel arrives at the port | Determine whether counting begins before discharge | Vessel Event and Tariff |
| Discharge date | The container is discharged from the vessel | It may differ from ETA | Discharge Event |
| Terminal availability | The terminal records the container as available | Confirm any difference from physical discharge | Terminal Event |
| Available Date | The container is displayed as available for pickup | It is not necessarily the contractual commencement | Availability record |
| D/O or release availability | Cargo-release procedures can be completed | Review its relationship with container Free Time | D/O and release record |
| Gate-out | The container leaves the terminal | It may begin Detention or Combined counting | EIR and Gate Event |
Calendar Days, Working Days and Tiered Rates
| Calculation Item | Example | Information Required | Caution |
|---|---|---|---|
| Free period | Five days | Whether the first day is included | Do not merely add five days |
| Calendar days | Continuous counting including weekends | Holiday treatment | Counting may continue during long holidays |
| Working days | Only specified operating days are counted | Port and carrier working-day definition | It may differ from ordinary business days |
| First tier | Days 1–5 at JPY 5,000 per day | Applicable container size | Forty-foot and special containers may differ |
| Second tier | Days 6–10 at JPY 10,000 per day | Date on which the rate increases | Cost may rise rapidly with extended delay |
Import FCL Timeline
| Stage | Container Status | Main Charge Risk | Information Required |
|---|---|---|---|
| Before vessel arrival | The container remains on the vessel or in transit | Import Demurrage and Detention do not normally arise immediately | ETA, Free Time, customs and vehicle planning |
| Discharge and terminal availability | The laden container is within the port | Demurrage and Storage | Commencement and pickup availability |
| Pickup available | The container can be collected after release procedures | Demurrage | Last free day, vehicle and receiving slot |
| Gate-out | The laden container leaves the terminal | Demurrage may stop and Detention may begin | EIR and pickup time |
| Delivery and devanning | The cargo is unloaded at the receiving location | Detention | Completion and return deadline |
| Empty return | The empty container is returned to the designated location | Detention stops | Acceptance, EIR and return time |
Demurrage Commencement and Stopping
| Review Item | Meaning | Evidence | Caution |
|---|---|---|---|
| Commencement | Free Time is counted from the event defined in the conditions | Tariff and carrier confirmation | It may differ from pickup availability |
| Last free day | Final day for pickup without the charge | Free Time calculation | Review time-of-day restrictions |
| Charge begins | The container remains in the terminal after Free Time | Terminal Event | Storage may arise separately |
| Charge stops | Commonly at Gate-out or the specified pickup event | EIR and Gate Event | Review the contractual stopping event |
| Final amount | Calculated from actual pickup and the applicable rate | Formal invoice | It may differ from the estimate |
Detention Commencement and Stopping
| Review Item | Meaning | Evidence | Caution |
|---|---|---|---|
| Commencement | Counted from Gate-out or another defined event | EIR and Free Time conditions | Review whether the pickup date is included |
| Return deadline | Last date for free empty-container return | Carrier confirmation and return instruction | Include the location and opening hours |
| Charge begins | The empty container remains unreturned after the deadline | Return-management record | Preserve evidence if no appointment is available |
| Charge stops | The designated depot accepts the empty container | Return EIR and depot receipt | Return to the wrong location may not stop the charge |
| Final amount | Calculated from actual return and the applicable rate | Formal invoice | Review any system-update delay |
Container-Status Decision Flow
| Step | Container Status | Likely Charge | Information Required |
|---|---|---|---|
| 1 | The vessel has not arrived | Normally not immediate Demurrage or Detention | Revised ETA, Free Time and pickup plan |
| 2 | The container is within the port after arrival | Demurrage and Storage | Commencement, last free day, D/O and customs |
| 3 | The container is available but not picked up | Demurrage | Vehicle, receiving and terminal appointment |
| 4 | The laden container has left the terminal | Detention | Pickup, delivery and return deadline |
| 5 | Devanning is in progress | Detention | Completion and empty transfer |
| 6 | The empty container awaits return | Detention | Depot, appointment and opening hours |
| 7 | The empty container has been returned | Detention normally stops | EIR, acceptance and invoiced period |
| 8 | LCL cargo remains in a CFS | CFS storage and related charges | Pickup availability, storage commencement and customs |
Relationship with Vessel Arrival Delay
Import Demurrage and Detention do not necessarily arise immediately while the vessel remains in transit.
However, vessel delay may cause the cargo owner to lose a delivery appointment or vehicle arrangement, making it difficult to complete pickup, devanning and empty return within Free Time.
After a vessel delay, the revised ETA should therefore be used to recheck Free Time, customs documents, D/O, vehicle availability, receiving slots and the empty-return plan before arrival.
Relationship with Port Congestion
Port congestion may restrict terminal appointments, gate operations, vehicle availability and empty-container return.
Demurrage or Detention is not automatically waived merely because the port is congested.
Where relief is requested, terminal screenshots, closure or congestion notices, failed appointment records, correspondence with the shipping line or NVOCC and inquiries concerning alternative depots should be preserved.
Relationship with Customs and D/O Delay
| Cause | Effect | Evidence | Allocation Consideration |
|---|---|---|---|
| Incomplete invoice or packing list | Declaration or amendment is delayed | Document receipt and correction record | Who supplied the correct document and when |
| Customs inspection | Permission and pickup are delayed | Inspection instruction and completion | Whether the event was reasonably avoidable |
| Other-law review | Permission or approval remains pending | Application and approval record | Timing of application and preparation |
| Unpaid D/O charges | Release is not completed | Invoice, payment and release time | Whether payment instructions were timely |
| Original B/L not available | D/O issuance is delayed | B/L dispatch, receipt and endorsement | Responsibility for document dispatch or surrender |
| Freight forwarder confirmation delay | Pickup procedures begin late | Arrival Notice and internal handling record | Whether earlier action could have avoided the charge |
Relationship with Receiving Restrictions
| Status | Likely Charge | Possible Response | Caution |
|---|---|---|---|
| No receiving slot before pickup | Demurrage | Early pickup, external depot or rescheduling | Compare alternative cost with Demurrage |
| Receiver rejects after pickup | Detention and waiting | Alternative warehouse, return or redelivery | Obtain cargo-owner approval |
| Devanning takes longer than planned | Detention and waiting | Additional labour or next-day return | Review depot opening hours |
| Required equipment is unavailable | Detention and vehicle rescheduling | Arrange forklift or crane | Review whether receiving conditions were confirmed |
| Multiple delivery points | Detention | External devanning and separate delivery | Review the reasonableness of multi-stop container use |
FCL and LCL
| Item | FCL | LCL | Operational Caution |
|---|---|---|---|
| Management unit | Container | Cargo or House B/L | Confirm the charging party |
| Port dwell | Demurrage and Storage may arise | CFS storage is more relevant | Do not use the same charge name automatically |
| After pickup | Detention is managed until empty return | The cargo owner does not normally return the container | Vehicle waiting is a separate charge |
| Starting point | Container availability or other carrier event | CFS cargo availability | Do not use ETA alone |
| Stopping event | Gate-out and empty return | Cargo pickup | Review the applicable Tariff |
| Evidence | EIR, Gate Event and return record | CFS receipt and pickup record | Preserve the appropriate evidence |
Estimated and Final Charges
| Status | Position | Explanation to the Cargo Owner | Required Response |
|---|---|---|---|
| Risk exists | It is uncertain whether pickup or return will occur within Free Time | The charge may arise depending on the actual pickup or return date. | Confirm the last free day and operating plan |
| Estimated charge | Excess days are expected from the current schedule | The current plan may result in approximately the stated number of excess days. | Calculate using the applicable rate |
| Charge running | Free Time has expired and the number of days continues | The charge is currently increasing at the applicable daily rate. | Take action to stop the charge |
| Final charge | Actual pickup or return is known | The period, days, rate and amount can now be confirmed. | Compare the invoice with the evidence |
| Waiver pending | A reduction or waiver request remains under review | The final payable amount remains subject to the carrier's decision. | Do not state that relief is confirmed |
Estimated Calculation Example
| Excess Period | Days | Daily Rate | Subtotal |
|---|---|---|---|
| June 11–15 | 5 days | JPY 5,000 | JPY 25,000 |
| June 16–17 | 2 days | JPY 10,000 | JPY 20,000 |
| Total | 7 days | Tiered rate | JPY 45,000 |
The actual invoice requires confirmation of whether the commencement and pickup dates are included, calendar or working days apply, tax and currency treatment, container size and any separate Storage Charge.
Free Time Extension and Waiver
| Review Item | Information Required | Evidence | Caution |
|---|---|---|---|
| Request timing | Before expiry or after the charge arises | Request email | Advance application may be required |
| Reason | Port closure, return impossibility or carrier instruction | Official notice and screenshot | A general statement of congestion may be insufficient |
| Mitigation effort | Whether other slots, depots or vehicles were checked | Inquiry record | Reasonable mitigation may be considered |
| Request recipient | Shipping line, NVOCC or agent | Booking and B/L reference | Match the request with the charging party |
| Approved relief | Full waiver, extension or partial reduction | Written approval | Do not rely solely on an oral response |
Cost-Mitigation Measures
- Review the B/L, D/O, customs documents and payment conditions before vessel arrival
- Manage the commencement, last free day and tiered rates by calendar date
- Secure a drayage vehicle when pickup availability becomes visible
- Confirm receiving slots, devanning equipment and working time in advance
- Confirm the return depot, return appointment and opening hours before pickup
- Compare early pickup, external devanning and temporary storage where pickup and receiving do not align
- Notify the shipping line or NVOCC immediately where return is impossible or port restrictions apply
- Consider requesting extension or relief before Free Time expires
Cost-Allocation Review
| Review Item | Information Required | Evidence | Effect on Allocation |
|---|---|---|---|
| Charge name | Demurrage, Detention, Storage or CFS storage | Invoice and Tariff | Identifies the operation and charging party |
| Charge period | Beginning and ending date | Terminal Event and EIR | Confirms the number of invoiced days |
| Commencement and stopping | Events that started and stopped the charge | Free Time conditions | Identifies overcharging or miscalculation |
| Direct cause | Customs, D/O, vehicle, receiving or return | Chronology | Identifies the responsible operating area |
| Contract and terms | Cost allocation, exclusions and limitation | B/L and quotation terms | Affects recoverability |
| Notice | When the Free Time and charge risk were communicated | Email and internal record | Relevant to explanation and mitigation |
| Instruction | Who instructed pickup, storage or delayed delivery | Instruction email | Confirms approval of the cost-causing action |
| Avoidability | Whether early pickup, storage or another depot was possible | Alternative quotation | Relevant to reasonable mitigation |
| Relief | Whether an extension or waiver was requested | Request and response | Affects the final payable amount |
The existence of a charge and the right to recover it from the shipping line, NVOCC, freight forwarder, cargo owner, receiving party, customs broker, delivery provider or another party are separate issues.
Operational Cases
| Case | Main Issue | Evidence | Decision Point | Initial Response |
|---|---|---|---|---|
| Vessel arrival was assumed to be the Free Time commencement | Incorrect commencement | Tariff and Terminal Event | What condition actually applies | Recalculate the last free day |
| Available Date was stated as the commencement without confirmation | Unverified condition was presented as fact | Carrier confirmation and email | Whether shipment-specific confirmation existed | Correct the explanation immediately |
| D/O delay caused Demurrage | Document, payment and notice delay | D/O invoice, payment and release | Whose process was delayed | Establish the chronology |
| No receiving slot existed before the last free day | Demurrage compared with early pickup | Free Time, storage quotation and appointment | Whether a reasonable mitigation option existed | Present alternatives to the cargo owner |
| Devanning was incomplete after delivery | Detention and receiving work | Arrival, work and return record | Whether receiving conditions were checked | Notify the return outlook and possible charge |
| No empty-return appointment was available | Return impossibility and relief | Appointment screen and inquiries | Whether another depot was available | Notify the shipping line immediately |
| Demurrage and Storage were both invoiced | Different charging parties and charge types | Invoices and Tariffs | Whether they are separate charges or duplication | Review the basis separately |
| An estimate was invoiced as a final amount | Estimated and formal charges were confused | Estimate and formal invoice | When the amount became final | Explain the difference and basis |
| Detention was passed through directly for LCL cargo | FCL and LCL cost structures were confused | CFS invoice and House B/L | The actual charge and contractual basis | Correct the charge description |
Freight Forwarder Involvement
The five classifications used in this article are not established by law or industry-wide consensus. They serve as an analytical framework within this series to clarify the scope of freight forwarder involvement.
| Classification | Main Involvement | Typical Responsibility Review | Key Documents and Facts | Caution |
|---|---|---|---|---|
| Simple Intermediary | Communicates Free Time, pickup, return and invoice information | Whether information was checked and transmitted accurately and promptly | Receipt, inquiry, transmission and warning records | This role does not automatically bear the charge |
| Cargo Transportation Service Provider | Separately arranges D/O, customs, pickup, delivery or return | Whether the entrusted operation was completed within the deadline | Instructions, vehicle, customs and EIR | Separate another operation's delay from its own work |
| NVOCC / House B/L Issuer | Manages Free Time, invoicing and pickup conditions as the House carrier | Notice, invoicing and transport duties as the Contracting Carrier | House B/L, Tariff, Arrival Notice and invoice | Separate Actual Carrier charges from charges passed to the cargo owner |
| Door-to-Door Single Contractor | Integrates customs, pickup, delivery, devanning and empty return | Overall process management, warning and cost mitigation | Integrated contract, schedule, vehicle and return record | Contractual responsibility may remain despite subcontracting |
| Agent / Coordinator for Specific Operations | Coordinates only specified D/O, customs, vehicle, appointment or return work | Deadline management within the specifically entrusted operation | Instruction, email and work report | Responsibility for one operation does not establish responsibility for all charges |
Contractual status, the actual scope of entrusted work, physical operations, business attributes, names appearing on transport documents, insurance status, applicable terms and mandatory law must be examined separately from the Standard Five Classifications. These matters do not constitute a sixth classification or any additional classification.
It is necessary to identify who is the Contracting Carrier, who is the Actual Carrier, who confirmed the Free Time, and who handled the D/O, customs, pickup, vehicle, receiving appointment, devanning and empty-container return.
It is also necessary to identify who recognised and communicated the last free day and charge risk, and who instructed or approved early pickup, external storage, delayed delivery or the return method.
Responsibility cannot be determined solely from a party's description as a shipping line, NVOCC, prime freight forwarder, overseas agent, customs broker, delivery provider or receiving party. The contract, transport documents, applicable terms, entrusted work, notice timing and response after the problem became known must be reviewed.
Common Misunderstandings
| Misunderstanding | Actual Approach | Practical Caution |
|---|---|---|
| Vessel delay immediately creates Demurrage | The post-arrival Free Time and pickup status are normally relevant | Confirm the commencement |
| Demurrage and Detention are the same charge | Terminal dwell and post-pickup return delay are separated | Confirm the container location |
| Free Time always begins on vessel arrival | The commencement depends on the applicable conditions | Review the Tariff |
| Five free days always means five days after arrival | First-day treatment, holidays and time restrictions affect the date | Confirm the last free day as a calendar date |
| All charges stop at terminal pickup | Demurrage may stop while Detention begins | Manage the empty return |
| Port congestion automatically produces a waiver | Relief may require an individual request and decision | Preserve evidence and apply early |
| Demurrage and Storage are the same charge | The charging party and subject may differ | Review each invoice and Tariff |
| The estimate and formal invoice must be identical | Actual events and tiered rates may change the amount | Separate estimated and final charges |
| The party receiving the invoice is the final responsible party | The invoicing relationship and final allocation are separate | Review contract, cause and instruction |
| LCL cargo follows the same Detention structure as FCL | CFS storage and cargo-level charges are more relevant | Confirm the actual charge name |
Example 1: Vessel Delay, Lost Receiving Slot and Demurrage
Assume that a 40-foot container is imported from Shanghai to Yokohama with an original ETA of June 3 and a receiving appointment on June 6.
The vessel arrives four days late, and the last free day is June 12. The next receiving appointment is not available until June 17.
The cargo owner argues that approximately JPY 120,000 in Demurrage after June 12 should be borne by the shipping line because the vessel delay caused the original appointment to be lost.
The prime freight forwarder had proposed pickup on June 11, external devanning and storage for approximately JPY 90,000, but the cargo owner rejected the proposal for cargo-control reasons.
The relationship between the vessel delay and Demurrage does not automatically determine full cost allocation.
The shipping line or NVOCC terms, Free Time, receiving appointment, reasonableness of early pickup, rejection by the cargo owner and possible mitigation must be reviewed.
Example 2: Document Error and Notification Delay
Assume that an FCL shipment of machinery parts arrives in Kobe with a last free day of July 10.
The invoice description is insufficient for import declaration, and customs requests additional information. The cargo owner supplies corrected documents on July 8.
Import permission is obtained on July 9, but the freight forwarder employee does not inform the delivery provider that pickup is possible until July 11. Actual pickup occurs on July 13, resulting in JPY 60,000 in Demurrage.
The cargo owner claims the entire amount from the freight forwarder because of the delay after permission. The freight forwarder argues that the original document error removed the available scheduling margin.
The cargo-owner document delay and the freight forwarder's notification delay overlap.
The charge period, avoidability at each stage, vehicle availability and prior Free Time warning must be reviewed without reducing the matter to a single cause.
Example 3: Detention Caused by Failed Empty Return
Assume that a 40-foot container is collected from Tokyo and delivered to a factory in Nagano, with empty return planned for the following day.
Devanning takes six hours longer than expected, and the delivery provider misses the depot's closing time.
The following day is a public holiday, and the next available return appointment is full. Actual return occurs three days later, resulting in JPY 90,000 in Detention.
The cargo owner argues that the delivery provider is responsible for failing to secure a return slot. The delivery provider states that the factory's delayed work caused the missed appointment.
The factory work record, vehicle arrival, return appointment, inquiries concerning alternative depots and notice to the shipping line must be reviewed.
Receipt of the Detention invoice does not by itself determine the final responsibility of the delivery provider or cargo owner.
When to Consult a Maritime Lawyer
Routine low-value Demurrage or Detention may not require immediate legal advice. Consultation with a lawyer experienced in maritime transport, logistics contracts and cargo insurance should nevertheless be considered where:
- Demurrage or Detention continues for an extended period and becomes substantial
- The applicable Tariff, B/L terms or Free Time conditions are disputed
- Duplicate or overlapping Demurrage, Detention and Storage charges are alleged
- A waiver is refused despite port closure or inability to return the container
- The cargo owner, freight forwarder, customs broker, delivery provider and receiving party deny responsibility against one another
- The freight forwarder's Free Time explanation or failure to warn is alleged to have caused the loss
- Lien, retention, delivery refusal or document refusal is involved
- An admission, indemnity, settlement or waiver is requested
- A claim deadline, objection period or time bar is approaching
The B/L, Arrival Notice, Free Time confirmation, Tariff, D/O, customs documents, import permission, Terminal Event, pickup EIR, return EIR, vehicle records, receiving appointment, waiver request and invoices should be arranged chronologically.
Decision Checklist
| Review Stage | Party or Source | Information to Confirm | Action if a Problem Exists |
|---|---|---|---|
| Before vessel arrival | Shipping line or NVOCC | Free Time, commencement and rates | Manage the dates internally |
| Arrival Notice | NVOCC or D/O personnel | ETA, charges and release conditions | Identify outstanding procedures |
| Discharge and availability | Terminal | Discharge and Available Date | Review the commencement relationship |
| Customs | Customs broker | Documents, inspection and permission | Warn the cargo owner of the charge risk |
| D/O | Shipping line or NVOCC | Payment, B/L and release | Resolve outstanding requirements |
| Before the last free day | Delivery provider and receiver | Pickup, vehicle and receiving slot | Compare early pickup and storage |
| At pickup | Terminal and delivery provider | Gate-out, EIR and Detention deadline | Recheck the return plan |
| At delivery | Receiver and delivery provider | Devanning and work delay | Notify any return risk |
| Before return | Depot and shipping line | Depot, appointment and opening hours | Check alternative depots |
| At return | Depot and delivery provider | Acceptance, EIR and time | Preserve the evidence |
| At invoicing | Charging party | Charge name, period, days and rate | Compare the invoice with the Tariff and events |
| At waiver request | Shipping line or NVOCC | Reason, evidence and request deadline | Obtain a written response |
| At liability dispute | Contractual party and maritime lawyer | Contract, cause, notice and mitigation | Do not admit liability immediately; preserve records |
Summary
Demurrage and Detention both concern use of a container beyond Free Time, but they arise at different locations and stages.
Demurrage generally concerns a laden container remaining within the port or terminal. Detention generally concerns the period after pickup and before return of the empty container.
The charge name, commencement, stopping event, free period, holiday treatment, tiered rate and Combined Free Time differ by shipping line, NVOCC, port, trade lane and contract.
Vessel delay alone does not necessarily create Demurrage or Detention immediately. It may nevertheless disrupt vehicle, receiving and return plans and lead indirectly to Free Time expiry.
Demurrage commonly stops at Gate-out or another specified pickup event. Detention commonly stops when the designated depot accepts the empty container. The actual contractual conditions must be confirmed.
For FCL cargo, pickup availability, the last free day, Gate-out, delivery, devanning and empty return must be managed together. For LCL cargo, CFS availability and storage should be reviewed rather than automatically applying the FCL Detention structure.
The cargo owner should be told whether a charge is at risk, estimated, currently running, final or subject to a waiver request.
The existence of a charge and the right to recover it from the shipping line, NVOCC, freight forwarder, cargo owner, receiving party or another party are separate issues.
Freight forwarder responsibility cannot be determined solely from the fact that it passed through a Demurrage or Detention invoice. Its status as the Contracting Carrier or Actual Carrier, its position under the Standard Five Classifications, the entrusted work, Free Time review, warning, arrangements and response after the problem became known must be examined.
Delay, Demurrage and Detention is not merely a matter of remembering charge names. It is the operational management of container location, Free Time, commencement, stopping events, evidence, mitigation and responsibility.
