What is the Difference Between Detention and Demurrage?

The difference between demurrage and detention lies in the context of container shipments and the stage at which the charges are applied:

• Demurrage: This charge is applied when a full container is not moved out of the port or terminal for unpacking within the allowed free time. The shipping line levies this charge on the importer from the date of discharge until the full container is moved out of the port or terminal. Demurrage is related to cargo while it is in the container.
• Detention: Also known as a per diem fee, detention is charged when the importer has picked up the container for unpacking, but the empty container has not been returned to the nominated depot within the agreed free-time. Detention is related to equipment while the container is empty after unpacking or before packing.

In summary, demurrage is charged for delays in picking up the full container from the port or terminal, while detention is charged for delays in returning the empty container to the shipping line's nominated depot.

Comparative Table: Detention vs Demurrage

The main difference between detention and demurrage lies in the location of the container and the stage of the shipping process when the fees are applied. Here is a comparison table of the two:

In summary, detention charges apply during the time the container is held by the consignees outside the terminal or port, while demurrage charges apply during the time the full container spends inside the terminal or port. Both charges are calculated based on calendar days, including holidays and weekends, and each carrier has the liberty to set its tariff considering various parameters such as the country, port, and available storage space.