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A type of detention in which freight isn’t picked up by a carrier within a specified time frame, resulting in demurrage fees.

What is Demurrage?

Demurrage usually leads to an additional charge to the carrier or company that fails to remove shipping containers from port terminals within the allotted time frame. Demurrage fees are necessary to keep the supply chain moving. 

They act as an incentive to make sure that containers are picked up in a timely manner and that shippers aren’t using the yard as free storage space.

For the latest and most reliable expert guidance in truckload shipping, our outstanding freight resources blog is your go-to destination. Explore our comprehensive articles that simplify the complexities of logistics, from freight rate negotiations to domestic terms usage. 

Related articles: 

How to Avoid Demurrage Charges: 5 Proven Strategies

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