Who Bears the Cost of Demurrage and Detention?
Interlink編集部Overview
Demurrage and Detention are highly contentious charges in import cargo. Even if the cargo itself is undamaged, delays such as customs clearance, late D/O exchange, missing B/L, customs inspection, cargo refusal, delayed delivery arrangements, or consignee circumstances can lead to exceeding the Free Time and incurring high fees.
Demurrage generally refers to charges incurred when containers or cargo remain at ports, terminals, or CYs. Detention generally refers to charges incurred when empty containers are not returned within the prescribed period after pickup. However, the actual terminology, location of occurrence, calculation start date, and calculation method vary by shipping line, NVOCC, country, port, and contract terms, so individual confirmation is necessary.
This article organizes who should bear Demurrage and Detention costs from the perspective of freight forwarder and NVOCC practice. To conclude upfront, the fact that charges have occurred alone does not determine who is responsible. It is necessary to check the cause, timeline, Free Time terms, D/O exchange status, customs clearance status, delivery arrangements, quotation terms, and email records to make a judgment.
Scope of This Article
This article organizes the determination of Demurrage and Detention liability from the viewpoints of cause-based confirmation flow, freight forwarder and NVOCC accountability, separate actual cost listings on quotations, relationship with marine cargo insurance, and practical record management.
| Item | Contents Covered in This Article | Contents Covered in Separate Articles or Confirmations |
|---|---|---|
| Demurrage and Detention | Discusses approaches to determine who bears the cost based on cause, timeline, Free Time, quotation terms, and email records. | Specific Free Time, daily rates, exemption negotiations, and tariffs by each shipping line require individual confirmation. |
| Storage | Covers important points for cost liability judgment as storage fees often arise simultaneously with Demurrage and Detention. | Storage fee structures and warehousing period limits at warehouses, CFS, or bonded storage locations require separate confirmation. |
| Freight Collect | Deals with cases where unpaid Freight Collect delays D/O exchange, causing Demurrage. | Basic structure of Freight Collect, differences with Prepaid, and recourse relationships in case of non-payment are covered in separate articles. |
| D/O Fee and D/O Exchange | Handles cost liability judgments when cargo release is delayed due to late D/O exchange. | The fee structure of D/O itself and general procedures for D/O issuance are treated in other articles. |
| Marine Cargo Insurance | Clarifies that Demurrage and Detention are not necessarily covered by marine cargo insurance. | Specific judgments on insurance terms, loss prevention costs, incidental expenses, and deductibles require confirmation with insurers or specialist agents. |
| Freight Forwarder Practice | Covers pre-occurrence warnings, cause analysis after occurrence, explanations to shippers, and how to maintain billing evidence. | Individual disputes, compensation, and legal liability judgments require contract conditions and expert advice. |
Demurrage and Detention Do Not Always Result from Someone’s Fault
Demurrage and Detention charges are not always due to someone’s negligence. They may result from multiple overlapping factors like customs inspections, port congestion, missing documents, shipper circumstances, delayed consignee pickup, shipping line procedures, delays in customs clearance permission, or delivery location restrictions.
What is important is not just the fact that charges occurred, but understanding why Free Time was exceeded, whose area of responsibility the delay falls into, whether it could have been avoided beforehand, and how it was stipulated in the quotation or contract terms.
Freight forwarders are not always responsible for all charges, but if explanations or records of the cause are insufficient, consignees may refuse payment. Conversely, even if delays in document submission or cargo pickup by the shipper are clear, failure of the forwarder to warn the shipper in advance about the Free Time expiration date may place the forwarder at a disadvantage in explanation.
Documents to Check First
To clarify Demurrage and Detention liability, it is necessary first to confirm the factual relationships. Decisions should not be made based on intuition such as "borne by shipper" or "borne by forwarder," but based on timeline and document verification.
| Document to Check | Purpose of Confirmation | Practical Points |
|---|---|---|
| Arrival Notice | Confirms cargo arrival date, D/O exchange conditions, destination charges, and starting point of Free Time. | Record the receipt date and the date it was forwarded to the shipper. |
| B/L or Sea Waybill | Confirms consignee, notify party, freight terms, and differentiation between Original and Surrender. | Delays can occur due to missing B/L or incomplete Surrender. |
| D/O Exchange Date | Identifies the date cargo became releasable. | Distinguish the cause of delay in D/O exchange. |
| Import Declaration and Import Permission Dates | Checks whether customs clearance delay occurred and the period when declaration was possible. | Separate the date when documents were complete and the actual declaration date. |
| Customs Inspection and Other Regulatory Records | Determines if delays were caused by inspections or other regulatory requirements. | Confirm inspection order date, inspection reservation date, and inspection implementation date. |
| CY Cargo Release Possible Date and Actual Release Date | Confirms the number of days Demurrage was incurred. | Check if cargo was not released despite being releasable. |
| Delivery Date and Empty Container Return Date | Confirms the days Detention was incurred. | Check delivery location circumstances, return reservations, and drayage arrangement status. |
| Free Time Terms | Confirms how many days are Free Time and exactly which dates are included. | Even a one-day misunderstanding may cause disputes over cost responsibility. |
| Quotation and Email Records | Checks for separate listing of actual costs, prior warnings, and shipper instructions. | Serves as an explanation basis when invoicing. |
It is especially important to confirm when Free Time starts and when it ends. Since Demurrage and Detention fees are primarily calculated by days, even a one-day difference in understanding can lead to disputes over cost responsibility.
Cost Responsibility Organized by Cause
When judging who is responsible for Demurrage and Detention fees, it is important to organize by cause. Below is a list of common causes that often cause issues in actual logistics practice, along with the documents to check.
| Cause | Cases Where the Shipper Side Typically Bears the Cost | Cases Where the Freight Forwarder’s Responsibility is Often At Issue | Documents to Confirm |
|---|---|---|---|
| Lack or Delay of Customs Documents | If the shipper or importer failed to submit necessary documents, product descriptions, or licensing information. | If the freight forwarder received the necessary documents but neglected to arrange declaration. | Invoice, Packing List, product description documents, submission request emails, declaration date, permit date |
| D/O Exchange Delay | If the shipper or consignee failed to submit B/L, unpaid Freight Collect, or did not instruct Surrender. | If the freight forwarder overlooked the Arrival Notice, failed to arrange D/O exchange, or did not confirm with the shipping company. | Arrival Notice, B/L, Surrender confirmation, D/O exchange date, payment records |
| B/L Not Received or Surrender Incomplete | If the shipper or consignee delayed sending the B/L or instructing the Surrender. | If the freight forwarder was aware of the non-arrival but failed to alert the shipper. | B/L dispatch records, Surrender request date, bank transaction records, email correspondence |
| Customs Inspection or Other Regulatory Checks | If caused by cargo content issues, importer’s insufficient preparation, or lack of documents for other regulations. | If there was a delay in notifying inspection instructions, omission of inspection reservation, or failure to inform required documents. | Inspection instructions, inspection reservation records, other regulatory documents, customs broker records |
| Consignee Pickup Delay or Delivery Location Issues | If the shipper’s side caused the delay such as late delivery date designation, full warehouse, no receiving slots, or delayed empty container returns. | If the freight forwarder gave incorrect or no guidance on Free Time expiry or return deadlines. | Delivery request date, delivery reservation, Free Time notifications, return deadline notifications, drayage records |
| Freight Forwarder / NVOCC Arrangement Omission | If the shipper also has delays in document submission or instructions, causes should be distinguished and judged separately. | If the freight forwarder overlooked the Arrival Notice, missed customs arrangements, delayed delivery arrangements, or gave incorrect Free Time information. | Internal arrangement records, email history, D/O exchange records, delivery request records |
| Unpaid Freight Collect | If the consignee is obligated to pay but did not, preventing D/O release. | If the freight forwarder was aware of the risk of non-collection but failed to confirm conditions or issue warnings. | Freight terms, payment request records, D/O release conditions, communication with overseas agents |
| Port Congestion or Shipping Company Issues | May be considered force majeure or third-party factors, with neither shipper nor freight forwarder at fault. | If failure to notify delay information or arrange alternatives occurs, accountability for explanation may become an issue. | Shipping company notices, terminal status, delay notification emails, alternative arrangement records |
When Caused by Customs Clearance Delays
If Demurrage or Detention occurs due to customs clearance delays, first confirm the cause of the delay. If it is due to missing information that the shipper or importer should have prepared — such as Invoice, Packing List, Certificate of Origin, food notification, other regulatory confirmations, importer information, HS codes, or cargo details — the shipper side may bear the costs.
On the other hand, if the freight forwarder or customs broker received the necessary documents but neglected to arrange the declaration, failed to communicate, or made an obvious processing error, the responsibility of the freight forwarder may be at issue.
To sort out cost responsibility due to customs clearance delays, it is necessary to confirm "when were the documents completed," "who caused the hold-up," and "whether the delay was despite the possibility of declaration." Simply stating that import permission was delayed is not sufficient to determine who should bear the cost.
When Caused by D/O Exchange Delays
Demurrage may occur if cargo cannot be moved out due to delays in the D/O exchange. In this case, confirm the necessary documents for D/O exchange: B/L, Surrender confirmation, Sea Waybill information, Arrival Notice, freight payment, and Freight Collect payment status.
If the shipper or consignee failed to submit the necessary documents or did not pay Freight Collect, the resulting costs may be borne by the shipper or consignee.
Conversely, if the freight forwarder overlooked the Arrival Notice, delayed arranging the D/O exchange, or neglected to confirm with the shipping company or NVOCC, the freight forwarder's responsibility may be at issue. For D/O exchange delay cases, it is important to distinguish the reasons why the D/O could not be issued and who caused that reason.
When B/L is Not Received or Surrender Is Not Completed
Demurrage may occur if the Original B/L has not arrived, or if the Surrendered B/L processing has not been completed, preventing cargo pickup.
In this case, check who was supposed to arrange the B/L, when the exporter dispatched it, whether bank settlement was involved, and when the Surrender request was made.
If the freight forwarder has not guaranteed the arrival of the B/L or the completion of the Surrender, they are not automatically liable for costs arising solely from the missing B/L. However, if the freight forwarder was aware of the B/L non-arrival but failed to alert the shipper, accountability for explanation may become an issue.
When Caused by Customs Inspection or Other Regulatory Checks
Demurrage or Detention may occur due to delays in cargo removal caused by customs inspections, food hygiene, plant quarantine, animal quarantine, pharmaceutical law, chemical substance regulations, intellectual property confirmation, and other regulatory checks.
These delays are often related to cargo content or the importer’s level of preparation, and are not automatically the freight forwarder’s responsibility. It is important to clearly state in the quotation that "customs inspection costs, storage fees, Demurrage, and Detention are charged separately based on actual costs incurred."
However, if the freight forwarder delays communication regarding inspection instructions or required documents, or neglects to make inspection reservations, the forwarder's delayed response may become an issue. Even though customs inspections and required legal compliance checks are third-party procedures, communication and record management remain critical.
Delays in Consignee Pickup or Delivery Destination Issues
Delays in container pickup or empty container returns can occur because the consignee does not decide the pickup date, there is no acceptance slot at the delivery destination, the warehouse is full, there is no forklift, the responsible person is absent, or the designated delivery date is late.
In such cases, since the cause lies within the management scope of the consignee or shipper, it is natural that Demurrage and Detention charges should be borne by the shipper.
However, the forwarder needs to notify the earliest possible delivery date, the end of Free Time, and the empty container return deadline promptly. Insufficient warnings could lead to claims such as "If you had informed us earlier, we could have taken action." Therefore, when explaining cost responsibility, not only the shipper’s circumstances but also when and what the forwarder notified should be verified.
When Caused by Forwarder or NVOCC Errors
When Demurrage or Detention arises from clear errors by the forwarder or NVOCC, the responsibility lies with the forwarder or NVOCC.
Examples include overlooking the Arrival Notice, failing to arrange D/O exchange, delayed delivery arrangements, internally neglecting customs documents, incorrect guidance about the Free Time end date, or failing to confirm with the shipping line.
Even in such cases, whether the full incurred cost should be immediately borne depends on the circumstances. If the shipper also delayed document submission or pickup, causes must be separately identified and clarified. Cost responsibility is determined not only by fault but also by assessing which delays affected which days.
When Freight Collect Payment Is Unpaid
For Freight Collect shipments, Demurrage may occur if the consignee does not pay freight or local charges, causing delays in D/O exchange.
In this case, it is necessary to confirm who is obligated to pay Freight Collect charges, D/O release conditions, consignee’s payment delay, relationship with the shipper, and settlement rules with overseas agents. Careful consideration is also needed on whether the NVOCC or forwarder should advance the payment.
If D/Os are issued too easily or arrangements are made without reliable cost recovery prospects, not only Demurrage and Detention, but also the risk of non-collection of the Freight Collect itself increases. Handling unpaid Freight Collect requires simultaneous judgment to halt further costs and avoid mistaken release or non-recovery.
Importance of Stating in Quotations
Demurrage and Detention are costs difficult to confirm occurrence or amounts at the quotation stage. Therefore, it is necessary to explicitly state in the quote that "actual costs will be billed separately if incurred."
Merely writing "actual costs extra" may be insufficient. Specifically listing applicable costs can reduce misunderstandings with the shipper.
Example phrasing might be: "Customs inspection costs, storage fees, Demurrage, Detention, waiting charges, redelivery fees, additional costs arising from delivery destination circumstances, and charges incurred or modified by shipping lines, ports, warehouses, or local agents will be billed separately at actual cost when incurred."
Having such wording makes it easier to explain that when Demurrage or Detention occurs, these costs were not included in the total quoted amount.
Relationship with Standard Terms and FCR
In transactions with shippers lacking a basic contract, linking not just quotations but also standard trading conditions and FCR issuance is important.
Standard trading terms should define the shipper’s document submission obligations, cargo information declaration duties, responsibility for additional costs, actual cost claims for third-party charges, forwarder's scope of responsibility, and force majeure conditions.
When issuing an FCR with attached standard trading terms, it becomes clearer that Demurrage and Detention are not automatically covered by cargo insurance or freight charges, and cost responsibility is assessed according to the cause.
Not Necessarily Covered by Insurance
Demurrage and Detention relate to delays, storage, and container return delays, rather than physical damage to the cargo itself. Therefore, these costs are not necessarily covered under marine cargo insurance by default.
Even if costs arise related to cargo incidents, coverage depends on policy wording, cause of the incident, whether they are loss prevention costs, and whether additional charges are accepted under the policy.
Forwarders should not tell shippers that "Demurrage and Detention are always covered by insurance." It is safer to advise confirming with the insurer or a specialist agency in marine cargo insurance as needed.
If Demurrage or Detention occurs due to a cargo incident, some costs may be covered as loss prevention or ancillary expenses depending on the insurance terms and incident cause. However, since this varies by insurance conditions and specific cases, forwarders should avoid making definitive statements and direct inquiries to insurers or marine cargo insurance specialists.
Forwarder and NVOCC Involvement Scope
In determining who bears Demurrage and Detention charges, it is important to separate what forwarders and NVOCCs can feasibly support and what should not be definitively decided by them. Particularly, who bears the cost, insurance coverage, and possibility of waivers can vary based on causes, contract terms, and involved parties' judgments.
| Situation | What can be supported | What should not be stated definitively | Practical notes |
|---|---|---|---|
| Free Time Confirmation | Can confirm Free Time start date, end date, daily rate, and number of days incurred. | Should not finalize number of days or amounts before confirming with the shipping line. | Check the shipping line’s or NVOCC’s tariff and billing details. |
| Cause Analysis | Can organize chronological order of customs clearance, D/O, delivery, B/L, Freight Collect, etc. | Should not determine “shipper liability” or “freight forwarder liability” before reviewing documentation. | Explain cause and number of days separately. |
| Warning to Shipper | Can notify of possible occurrence, daily rate, and deadline before Free Time expires. | Should not guarantee waiver or reduction before it actually happens. | Keep warning emails as records. |
| Explanation of Charges | Can organize invoice, number of days incurred, Free Time, cause, and response history. | Cannot state that shipping line or warehouse charges can be unconditionally canceled at own discretion. | Explain estimated conditions along with causes of incidence. |
| Insurance Confirmation | Can guide to check with insurance company or specialist agent. | Should not state that insurance will definitely cover the cost. | Separate marine cargo insurance and delay or storage charges. |
| Freight Collect Unpaid | Can organize unpaid amount, D/O release conditions, basis for claims to consignee or shipper. | Should not assume release can occur without collection prospects. | Manage risks of non-collection and Demurrage simultaneously. |
| Waiver or Reduction Negotiation | Can explain circumstances to shipping line or NVOCC and request negotiation. | Cannot guarantee waiver or reduction will be approved. | Whether negotiation is possible depends on shipping line, port, and contract terms. |
Common Misunderstandings
| Common Misunderstanding | Actual Perspective | Practical Notes |
|---|---|---|
| Demurrage and Detention are always borne entirely by the freight forwarder. | Liability depends on cause of occurrence, contract terms, Free Time, estimates, and chronology. | Determine responsible party after organizing causes and number of days. |
| No extra charges occur if there is no cargo damage. | Charges may occur even without cargo damage due to customs delays, D/O delays, or delayed pickup. | Separate cargo damage incidents from storage or detention fees in thinking. |
| If import customs clearance and delivery are included in estimate, Demurrage is also included. | Demurrage and Detention are usually charged separately as actual costs incurred at occurrence. | List applicable fees specifically in the estimate. |
| Costs incurred from customs inspection are the freight forwarder’s responsibility. | Customs inspections and other regulatory compliance often relate to cargo details or importer’s preparation, so the freight forwarder is not necessarily liable. | Confirm inspection instruction date, required documents, and communication status. |
| The freight forwarder must pay even if the consignee delays pickup. | If the delay is due to delivery destination issues or insufficient receiving capacity controlled by the shipper, liability usually falls to the shipper’s side. | Notify Free Time expiration date and empty container return deadlines in advance. |
| Fees stop if D/O is issued even if Freight Collect is unpaid. | D/O release requires payment condition and authority confirmation; careless release increases risk of non-collection. | Check unpaid amounts, release conditions, and payees. |
| Demurrage and Detention are always covered under marine cargo insurance. | Costs related to delays, storage, and late returns are not necessarily covered by marine cargo insurance. | Check with insurance company or marine cargo insurance specialist. |
| Amounts billed by the shipping line can be invoiced directly to the shipper without explanation. | While billing is possible, explanations to the shipper require organizing incurred days, Free Time, causes, and estimate terms. | Attach timeline and cause explanation as well as the invoice. |
Cases That Often Cause Issues in Practice
| Case | Common Issues | Documents to Check | Practical Points to Note |
|---|---|---|---|
| Delay in submitting customs documents | Unable to declare, resulting in Demurrage charges after Free Time expires. | Document submission request emails, receipt dates, import declaration date, import permit date, invoices | If document submission delay continues, issue warnings before Free Time ends. |
| Delay in D/O exchange | Without a D/O, cargo cannot be picked up, causing Demurrage charges. | Arrival Notice, B/L, Surrender confirmation, D/O exchange date, payment records | Confirm who is responsible for the delay in D/O exchange. |
| Unable to pick up cargo due to non-arrival of B/L | Release is impossible because Original B/L has not arrived or surrender is incomplete. | B/L dispatch records, banking documents, Surrender requests, email logs | Alert the relevant parties as soon as non-arrival is identified. |
| Delay in cargo release due to customs inspection | Inspection schedules and other regulatory checks push back the earliest possible release date. | Customs inspection notices, inspection appointments, inspection results, customs broker records | Clearly state that inspection fees and storage charges are borne separately as incurred. |
| Consignee delayed specifying delivery date | Delays in cargo release and empty container return result in Demurrage or Detention charges. | Delivery orders, delivery reservations, Free Time notices, return deadline notices | Even if delayed due to consignee’s convenience, notify deadlines in advance. |
| Delay in empty container return | Unable to return empty container after delivery, causing Detention charges. | Delivery dates, empty container return dates, return reservations, drayage records | Manage not only delivery dates but also return deadlines. |
| Unable to release cargo due to Freight Collect unpaid | Consignee does not pay freight or local charges, stopping D/O exchange. | Freight terms, billing records, D/O release conditions, overseas agent emails | Check collection feasibility before advancing payment. |
| Freight forwarder misinformed about Free Time | Shipper believes deadline was met, but actual deadline was exceeded, causing disputes. | Free Time notification emails, shipping line terms, detailed invoices, internal records | If misinformation occurred, clarify causes and number of affected days. |
Decision Checklist
| Situation | Party to Confirm With | Items to Confirm | Response if Issue Found |
|---|---|---|---|
| Upon receiving Arrival Notice | Shipping line, NVOCC, overseas agent, customs broker | Cargo arrival date, Free Time start/end dates, D/O terms | Promptly notify shipper of Free Time and required actions. |
| When checking customs documents | Shipper, importer, customs broker | Invoice, Packing List, product description, other regulations, importer info | Clearly communicate missing documents and submission deadlines. |
| Before D/O exchange | Shipping line, NVOCC, shipper, consignee | B/L, Surrender, Freight Collect payment, D/O fee payment | Document reasons for inability to exchange D/O and notify stakeholders in writing. |
| Before Free Time expires | Shipper, consignee, customs broker, delivery company | Possible pickup dates, customs clearance forecast, delivery arrangements, delivery availability | Warn of potential costs and deadlines. |
| When arranging delivery | Delivery company, shipper, delivery destination | Delivery date, receiving slot, cargo handling conditions, empty container return deadline | If delayed due to delivery destination, notify possible cost occurrence. |
| After costs have occurred | Shipping line, NVOCC, warehouse, delivery company, shipper | Invoice amounts, days occurred, Free Time, cause, quotation terms | Explain not only invoices but also timeline and causes clearly. |
| Insurance confirmation | Insurance company, insurance agent, shipper | Insurance terms, cause of incident, applicability of loss prevention costs, deductibles | Forwarder should not conclusively judge coverage; advise consulting specialists. |
| Determining liable party | Shipper, consignee, forwarder, NVOCC, relevant parties | Causes, timeline, contract terms, quotation details, email records | Do not unilaterally conclude; provide explanations based on evidence. |
Example 1: Demurrage Incurred Due to Delay in Customs Document Submission
In an import FCL case, the cargo arrived at a Japanese port as scheduled. The forwarder forwarded the Arrival Notice to the shipper and requested submission of the Invoice, Packing List, and product description documents necessary for customs clearance.
However, the shipper delayed preparing the product description document, and several days passed without customs declaration. After Free Time expired, Demurrage charges were incurred.
When the forwarder billed Demurrage to the shipper, the shipper claimed, "The estimate included import customs clearance and domestic delivery" and "We were not informed that additional charges would occur."
In this case, if the estimate clearly stated that "Demurrage, Detention, storage fees, customs inspection fees, etc. are charged separately as incurred," and if the forwarder warned by email before Free Time ended that "If documents remain unsubmitted, Demurrage will be incurred," it would be easier to explain the cost responsibility. The cause was not the cargo’s arrival at the port but the delay in submitting the documents required for customs.
Example 2: D/O Exchange Stalled Due to Unpaid Freight Collect Charges
Consider an import LCL cargo under Freight Collect terms. After cargo arrival, the consignee was sent the Arrival Notice and local charges notification, but the consignee did not pay freight and D/O fees, so the D/O exchange did not proceed.
During this period, the cargo remained at the CFS, increasing CFS storage and Demurrage-related costs. The overseas agent explained that "It was the consignee’s responsibility to pay," and the shipper also claimed "The buyer is responsible."
In this case, it is necessary to confirm whether the Release was delayed due to unpaid Freight Collect charges, whether the NVOCC had issued an early warning about the unpaid fees, and whether there is a basis for claiming payment from the shipper if the fees remain uncollected.
For Freight Collect shipments, it is important to clearly specify in the quotation, booking email, agency agreement, or standard trading terms who can be billed if collection from the consignee fails.
Example 3: Case Where the Empty Container Return Deadline Was Exceeded Due to Consignee’s Delayed Pickup
For imported FCL cargo, customs clearance was completed within the Free Time, and the D/O exchange was also completed. However, the consignee’s warehouse was full, and a delivery slot could not be secured, so the delivery date was set several days later.
Although the container was moved out of the CY, the return of the empty container was delayed after delivery, resulting in Detention charges. The consignee argued that since customs clearance was finished, this was a problem with the delivery company or freight forwarder.
In this case, even if there were no issues with customs clearance or D/O exchange, if the empty container return deadline was exceeded due to the delivery destination’s circumstances, the cost is likely to be borne by the shipper.
However, it is crucial whether the freight forwarder had informed the shipper in advance about the empty container return deadline, the daily charge for late return, and the impact of delivery delays. If the deadline was not communicated, explaining the cost responsibility may become difficult.
Practical Considerations
If Demurrage or Detention is expected to occur, the freight forwarder should notify the shipper early. Providing information on the Free Time end date, removal deadline, empty container return deadline, and expected daily charges helps facilitate later cost responsibility discussions.
If the charges are billed only after they occur, the shipper may say, "If we had been told earlier, we would have taken action." Therefore, a warning email before charges arise is important.
Also, when receiving Demurrage or Detention claims, the freight forwarder should not simply forward the invoice from the shipping line or NVOCC but should organize and explain to the shipper details such as the number of days incurred, Free Time, cause, and handling process.
Demurrage and Detention are not just additional costs; they are matters of time management and responsibility allocation in import operations. Managing Free Time, notifying deadlines, and recording causes is also part of the freight forwarder’s practical work to protect themselves.
Summary
Demurrage and Detention charges are among the most contentious costs in import cargo. Causes vary widely, including customs delays, D/O exchange delays, non-arrival of B/L, customs inspections, consignee’s delayed pickup, Freight Collect non-payment, and freight forwarder’s arrangement delays.
Who bears the cost is not decided solely by the fact that charges were incurred. It requires checking the cause, timeline, document submission status, Free Time conditions, quotation details, standard trading terms, and email records.
For freight forwarders, it is important to clearly state Demurrage and Detention as additional actual expenses in the quotation, issue warnings to the shipper before the Free Time ends, and after occurrence, organize and explain the causes and number of days. Managing Demurrage and Detention is not merely cost processing but an essential business practice to protect the freight forwarder’s scope of responsibility.
