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GLOSSARY

Demurrage

An accessorial charge for freight that isn’t picked up by a carrier within a specified time frames, typically two hours.
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What is Demurrage?

Demurrage is an accessorial charge carriers bill shippers for failing to remove shipping containers from port terminals within the allotted two-hour dwell time.

Demurrage fees act as an incentive to keep supply chains moving and ensure shippers do not use the yard as free storage space.

Detention and demurrage fees are similar. Shippers receive demurrage fees for loads held inside of a port of entry or terminal, whereas detention fees are for loads held at a facility outside of a port.

Related Articles: 

What Are Demurrage and Detention Charges? (And How to Avoid Them)

Truckload Accessorial Charges Defined

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