What Are Demurrage and Detention?
Demurrage and detention, D&D in industry shorthand, are the two fees that make importers lose sleep. Both are charged per container per day. The only difference is where the container is when it overstays.
Demurrage applies when an import container stays inside the port terminal or container yard beyond the free days after discharge. Think of it as rent for terminal space.
Detention applies when a container stays outside the terminal, at your warehouse, at a third-party depot, beyond the allowed period after you picked it up. Think of it as rent for the carrier's equipment.
The two fees are designed to force rapid container turnaround. Containers are capital-intensive assets. A carrier or terminal operator does not make money when boxes sit idle, demurrage and detention are the financial incentive to keep them moving.
How the Clock Actually Works
Demurrage starts the day your container is discharged from the vessel. You get a negotiated number of free days, typically 3 to 7 calendar days for standard containers. Calendar days, not business days. Weekends and holidays count. If you have not picked up the container by the end of free time, the meter starts running.
Detention starts when you pick up the container and gate it out of the terminal. You get a separate free period, typically 5 to 14 calendar days, to unload the cargo and return the empty to the carrier's designated depot. If the empty is not back by the deadline, detention charges begin.
Here is the gotcha that catches newcomers. The free time for demurrage and detention are separate clocks, but they run back-to-back. If you use all your demurrage free days and pick up on day 7, you still have your full detention free period. But if customs holds your container at the terminal for two weeks, you will pay demurrage for every day past free time, and still have to return the empty on time once you finally get it out. Customs delays are the single biggest cause of D&D charges and carriers almost never waive fees for customs-related delays.
What D&D Actually Costs, Real Numbers
US ports are the most expensive in the world. Here are ONE Line's published import demurrage rates effective January 1, 2025, per container per day:
| Port | Days 1-4 | Days 5-9 | Days 10+ | Reefer (Day 1) |
|---|---|---|---|---|
| New York (dry 20'/40') | USD 330 | USD 435 | USD 520 | USD 690 |
| Baltimore | USD 270 | USD 270 | USD 345 | USD 420 |
| LA/Long Beach | USD 285 | USD 330 | USD 375 | USD 455 |
These are escalating tiers. The longer you wait, the more each day costs. A container sitting 15 days past free time in New York: 4 days at USD 330 + 5 days at USD 435 + 6 days at USD 520 = USD 6,615. For one container. Detention adds more on top.
Detention for dry containers typically runs USD 125-185/day depending on the carrier. Reefers, flat racks, and open tops carry premium rates across the board.
The scale of this is staggering. According to FMC data, nine major ocean carriers collected approximately USD 15.4 billion in D&D charges between April 2020 and March 2025. During the peak congestion period of 2021-2022, some individual shippers faced D&D bills exceeding the value of the cargo inside the container. In 2026, the FMC levied a USD 22.67 million fine against MSC for systematic D&D billing violations, one of the largest civil penalties in the agency's history.
The FMC Rule That Changed the Game
The FMC's 2024 Final Rule on Demurrage and Detention Billing Requirements (46 CFR Part 541, effective May 28, 2024) changed how D&D works in US trades. Key provisions:
- Carriers must include specific information on every D&D invoice, container number, dates charges were incurred, applicable free time, and rate basis.
- Invoices must be issued within 30 calendar days of when charges were incurred.
- Billed parties have a minimum of 30 calendar days to dispute charges.
- If an invoice does not include all required information, the billed party has no obligation to pay.
In September 2025, the US Court of Appeals for the D.C. Circuit struck down one provision, the restriction on who could be billed, but left all other requirements intact. The rule applies to both vessel-operating common carriers (VOCCs) and non-vessel-operating common carriers (NVOCCs).
Frequently Asked Questions
What is the difference between demurrage and detention?
Demurrage is charged when an import container overstays inside the terminal. Detention is charged when a container overstays outside the terminal after pickup. Same box, same carrier, two different fees. The trigger is location: inside the gate or outside it.
How much do demurrage and detention fees cost?
Under ONE Line's 2025 published tariff: New York import demurrage USD 330-520/day, Baltimore USD 270-345/day, LA/Long Beach USD 285-375/day. Reefers can hit USD 690/day at some terminals. Detention for dry boxes typically USD 125-185/day. Combined D&D for extended delays easily exceeds USD 5,000 per container. The FMC's 2024 Final Rule requires invoices within 30 days and provides a minimum 30-day dispute window.
Related Terms
- TEU, D&D charges are assessed per container, with rates typically varying by TEU size (20-foot vs 40-foot).
- Container Terminal, The facility where import demurrage accumulates. Terminal free time policies vary and are negotiable.
- FCL vs LCL, FCL shippers are directly exposed to D&D charges. In LCL, the consolidator manages D&D risk and allocates costs to individual shippers.
- Port Throughput, High throughput with insufficient yard capacity is a leading cause of congestion-driven demurrage.