Difference Between Detention and Demurrage in Shipping

In global trade, Detention and Demurrage are two important charges related to containerized shipments. Understanding their differences is crucial for businesses involved in imports and exports. Demurrage Charges occur when a container remains at the port beyond the free period before customs clearance. This fee is imposed by shipping lines for port storage. Detention Charges apply when a container is held outside the port beyond the allowed free period, delaying its return to the shipping company. Both fees encourage efficient container movement. Businesses must plan logistics carefully, ensure timely clearance, and coordinate with shipping lines to avoid unnecessary costs related to Detention and Demurrage.