What is a demurrage fee and why is it charged?

If you are engaged in importing or exporting goods, you have probably come across the term demurrage fee at least once. This refers to additional costs that arise when a container stays in the port longer than the agreed period.

Carriers and shipping companies charge this fee because containers are a valuable resource – every day they remain unused, the companies lose potential revenue.

In other words, demurrage is a way to encourage clients to quickly pick up containers and ensure the smooth flow of goods.

Difference between demurrage fees and storage charges

This is where confusion often arises. Although both terms refer to additional costs, the difference is clear:

• Demurrage: Charged when a container is not picked up from the port on time. The container is blocked and cannot be used for a new shipment.
• Storage fees: Charged by port authorities or terminals for using space in the port when goods remain in storage or at the terminal for too long.
  

Therefore, demurrage is a cost paid to the shipping line, while storage fees are charged by the port.

You can find more at: Maersk – Demurrage & Detention

How does the free days system work?

When the container arrives at the port, the shipping company usually grants a certain number of so-called free days. This is the period during which you can pick up and return the container free of charge.

• If you do this within the deadline → there are no additional costs.
• If you are late → demurrage fees are charged per day.

The amount of the fee depends on:

• the rules of each shipping company.
• the type of container (20ft, 40ft, reefer),
• the country and the port.

How much are demurrage fees?

Fees vary from one shipping company to another but typically range from €30 to €150 per container per day. For special containers or reefers, the costs can be significantly higher.

If a container is delayed by a week or two, the fee can exceed the value of the goods themselves. That’s why it’s important to plan all logistics steps in advance.

Most common reasons for demurrage fees

1. Delays in customs procedures – incomplete or incorrect documentation.
2. Lack of transportation – e.g., trucks are late to pick up the container.
3. Payment issues – invoices or customs duties are not settled on time.
4. Poor communication between the importer, freight forwarder, and carrier
5. Unplanned disruptions (e.g., strikes, weather conditions).

How to avoid demurrage fees?

This is the most important question for importers and freight forwarders. Here are some practical tips:

• Prepare documentation in advance. Any missing paperwork prolongs the container’s stay in the port.
• Arrange transportation on time.
  Always book trucks or trains a few days in advance.
  
• Monitor the free days.
  Know exactly when the free days expire and plan accordingly.
• Use digital tools. Platforms like HUBBIG enable better coordination between freight forwarders and carriers.
  
• Communicate proactively.
  If you anticipate a delay, inform the shipping company or freight forwarder in time – sometimes exceptions can be arranged.

Difference between demurrage fees and detention fees

Another term that often causes confusion is the detention fee.

• Demurrage: paid while the container is in the port and has not been picked up.
• Detention: paid when the container has been picked up but is not returned on time.

Both charges can occur simultaneously if the container is delayed both in the port and after it leaves the port.

Learn more at: Investopedia – Demurrage Definition

Case study: How a company avoided 5000 euros cost

A Croatian import company faced a problem – their containers sat in the port for weeks due to delayed documentation. After implementing shipment tracking software and scheduling transportation with carriers in advance, they managed to completely eliminate demurrage costs.

This shows that good preparation is key to avoiding additional charges.

FAQ: Most common questions about demurrage fees

Q: What is a demurrage fee?
It is a charge imposed by the shipping company when a container stays in the port for too long.

Q: How much is the demurrage fee?


Typically from €30 to €150 per container per day.

Q: What is the difference between demurrage and storage?

Demurrage is paid to the shipping company, while storage is paid to the port or terminal.

Q: How to avoid demurrage fees?

Prepare documentation on time, book transportation in advance, and monitor free days.

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Conclusion

Demurrage fees are one of those costs that are easy to overlook during planning, but when they occur, they can seriously burden operations. Although it may seem like you have no control over them, experience shows that most such situations can be avoided with timely preparation, good communication, and clearly defined processes.

The key is to plan all steps in advance – from documentation and customs procedures to securing transportation and monitoring deadlines. In this way, demurrage stops being an “inevitable cost” and becomes something you can control.

This is where digital platforms like HUBBIG play an important role, enabling better connectivity between freight forwarders, carriers, and other partners in the supply chain. Through faster information exchange and more transparent collaboration, the risk of additional costs is significantly reduced.