Demurrage is a charge that is incurred when cargo owners, shippers, or consignees do not adhere to the rules around ‘free time’ that are set out in the charter agreement. The consignee is generally responsible for any demurrage incurred and must pay the charges in full before they can receive their goods. The specific charges will vary depending on the port and terminal, but they can be steep, especially when combined with per diem/detention fees — anywhere from $75 – $200 per container, per day, is typical. Some terminals will increase the daily fee amount after a certain number of days.

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