Detention & Demurrage: Detention and Demurrage
Fees billed when a truck (detention) or a container (demurrage) sits idle past its free time.
Detention and demurrage are related but distinct delay charges. Detention applies to a truck and driver held at a shipper's or receiver's dock beyond the agreed free time — typically billed per hour. Demurrage applies to an ocean container sitting at a port, rail yard, or terminal past its free days — typically billed per day. Both exist to compensate the carrier for equipment and driver time that can't be used elsewhere.
Who publishes it
Set per-carrier or per-contract; not a government-published rate.
How to read it
- Typical U.S. trucking free time: a 2-hour grace period before detention charges begin.
- Typical detention rates: roughly $50–$100/hour after free time, higher for specialized equipment (reefer, tanker, tarped flatbed) — up to ~$125/hour.
- Demurrage is billed per day, not per hour, and free-day allowances vary by port and shipping line.
Why it matters
Detention and demurrage are two of the largest sources of unbudgeted freight spend for shippers with unreliable dock scheduling. They're also a frequent point of dispute — the fastest way to reduce them is faster dock turn times and clear appointment scheduling, not lower detention rates.
Frequently asked questions
What's the difference between detention and demurrage?
Detention happens at a shipper's or receiver's dock and applies to a truck and driver, billed per hour. Demurrage happens at a port or terminal and applies to a container, billed per day. They're often used loosely as synonyms, but they refer to different equipment and different billing structures.
How much free time do I get before detention charges start?
Most U.S. carrier contracts give 1–2 hours of free time at the dock before detention charges kick in, with a 2-hour grace period being the most common industry default.
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