Demurrage

What is demurrage? Demurrage is a fee charged when a container or trailer is held past the free time allowed at a port, rail yard, or shipper facility.

Full definition

Demurrage applies primarily in intermodal and drayage operations. A loaded container sitting at a port terminal beyond the free time (often 3-5 days) accrues per-day charges that escalate quickly.

The charges typically fall to the cargo owner or broker, but carriers can be on the hook depending on contract terms. Drayage carriers in congested ports (LA/LB especially) plan their schedules around demurrage and detention windows.

Demurrage is one of the operational costs that programmatic trucking finance products (working capital, factoring) help carriers absorb when port disruptions push timing out.

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