Demurrage vs Detention: Meaning and Charges Explained
Under separate import terms, demurrage covers the carrier’s container inside the terminal beyond free time; detention covers it outside beyond free time. Storage concerns terminal or depot space and may be separate. Check your booking and local tariff: invoice labels and counting rules vary.
Demurrage, detention and storage: one-line definitions
Demurrage: under separate import terms, a charge for retaining the carrier’s full container inside the port or terminal beyond agreed free time.
Detention: under separate import terms, a charge for retaining the carrier’s container outside the port or terminal beyond agreed free time.
Storage: a charge for occupying terminal or depot space beyond any applicable free time, which may be separate from container-use charges.
Names and charging arrangements vary by destination and carrier. For example, Maersk’s UK import tariff invoices combined inside-and-outside container use as DETENTION and terminal storage as DEMURRAGE. Read the applicable definitions rather than relying on the invoice label alone.
Comparison: who charges and when the clock runs
The table describes separate import demurrage and detention, rather than every local billing arrangement. A counting period can start before money becomes payable: the applicable free time must first expire.
| Charge | What it covers | Who charges | Counting period | Free-time structure |
|---|---|---|---|---|
| Demurrage | Full container remaining inside the port or terminal | Carrier or its agent | Commonly discharge from the vessel to full-container gate-out | An agreed allowance for the terminal period; charges follow its expiry |
| Detention | Carrier’s container retained outside the port or terminal | Carrier or its agent | Under separate terms, full-container gate-out to empty return at the agreed facility | A separate allowance for outside use, unless combined terms apply |
| Storage | Use of terminal or depot space | Terminal operator directly, or through the carrier under local arrangements | The facility’s specified arrival or discharge event until removal | Its own allowance, if offered; do not assume it matches container free time |
How much will I pay?
Rates and free time depend on the applicable local tariff and any shipment-specific agreement. Obtain the terms for your destination, equipment and booking.
Check the counting events, last free date, calendar or working-day basis, treatment of event days, currency and any stepped charging bands. Where progressive bands apply, calculate the chargeable days in each band at that band’s rate.
Combined demurrage and detention covers time inside and outside the terminal within one counting period. Collection does not restart that combined allowance. Storage may still be separate.
Ask what each line includes before adding the charges together. For the wider invoice breakdown, read demurrage, detention and storage charges on China imports.
UK example: customs value and import VAT
Under HMRC’s Method 1 customs valuation guidance, demurrage incurred before goods arrive in the UK is included in customs value as a delivery cost. Demurrage incurred after arrival is excluded as a post-landing charge.
Import VAT value starts with customs value. HMRC requires the addition of qualifying incidental expenses to the first UK destination, and those resulting from transport to a further UK destination known at importation. Its examples include demurrage and storage. Exclusion from customs value therefore does not automatically mean exclusion from import VAT value.
Give your customs agent the charge breakdown, timing and destination details so they can apply the valuation rules. This UK example should not be applied as a tax rule for other destinations.
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Where to go next
For planning documents, collection, unloading and empty return, use how to prevent container demurrage, detention and storage.
If a bill has arrived, follow how to prevent and challenge container charges for the evidence and review process.
Frequently asked questions
Is demurrage just another name for storage?
The label depends on local terms. Maersk’s UK import tariff invoices terminal storage as DEMURRAGE; elsewhere, container demurrage can exclude terminal storage. Check what the charge includes.
Does detention stop when I finish unloading?
Under the separate import terms described here, the counting period ends when the empty container gates into the agreed return facility. Finishing unloading is not the return event.
How many free days do I get?
Check your booking agreement and applicable local tariff. Request the last free date for each charge; do not assume storage and container use have the same allowance.
Do weekends count?
Check the tariff’s rules for both free time and chargeable time. Calendar-day tariffs include weekends; do not assume every tariff uses the same basis.
Can I receive both demurrage and storage charges?
Yes, where the applicable arrangement charges separately for container use and terminal space. Request an itemised explanation of the services and periods covered.
Does combined free time restart when I collect the container?
Under combined terms, the allowance spans the inside and outside periods together. Collection does not restart it. Confirm the remaining free time and empty-return deadline.
Sources
- Maersk: detention, demurrage, storage and combined-period terms
- Maersk: local tariff example distinguishing demurrage from terminal storage
- Maersk: South Africa terms PDF; unavailable when checked
- Maersk: demurrage calculation FAQ; substantive answer unavailable when checked
- HMRC: customs valuation and demurrage before or after UK arrival
- HMRC: import VAT valuation and incidental expenses
- Maersk: UK import tariff, combined detention and terminal-storage invoice labels
- Hapag-Lloyd: US tariff guide illustrating separate line demurrage and terminal storage
- Maersk: free days, last free date and container-return details