Your eyes and hands in India · Est. 2019 · Replies within one working day

What is the demurrage and detention risk at destination?

Demurrage is charged when a container stays at the port beyond its free time. Detention is charged when you keep it outside too long. Both build up daily, so late documents cost money.

· 3 min read · Creston & Co

Demurrage is the charge for leaving a full container in the port terminal after its free time ends. Detention is the charge for keeping the shipping line's container outside the terminal, at your warehouse, beyond the agreed free days. Port storage charges may come on top.

Both are charged per container per day, and many lines raise the daily rate the longer it goes on. Some lines combine the two into a single free time period, so read the terms carefully. A shipment held for a week or two over a document problem or customs examination can build up a large bill, usually paid by the importer.

Why agri shipments get stuck

  • Original bill of lading not yet received, often because the balance payment or bank process was slow.
  • Missing or wrong documents, such as a phytosanitary certificate, health certificate or certificate of origin.
  • A customs or food authority hold for document checks, examination or sampling.
  • Lab test results awaited at destination.
  • Your warehouse not ready to receive, or no truck booked.
  • A rejected consignment waiting for a decision on re-export or destruction.

How to reduce the risk

  • Ask your forwarder or the line for the free days at your port before you book, and negotiate extra free time if your clearance is often slow.
  • Get draft documents from the supplier before shipment and check them, so errors are fixed in India.
  • Pay the balance early enough for originals to arrive by courier before the vessel, or agree a telex release or seaway bill.
  • Lodge customs and food import notifications before arrival where your system allows it.
  • Plan unloading so the empty container goes back to the depot named by the line within its free days.
  • Agree in the contract who pays demurrage caused by the supplier's document errors.

Documents and payment

Many demurrage bills start with paperwork, not with the cargo. The bill of lading is the key, as covered in what a bill of lading is and why it matters for payment. If your payment term is cash against documents, plan the payment date around the vessel's arrival, not after it.

If your shipment is detained by customs or the food authority, the clock usually keeps running. See what happens if a shipment is detained at EU or US customs. This is general guidance; your forwarder can tell you the exact charges and free time at your port.

How we help

We check the supplier's draft documents against your import requirements before the goods ship, so mistakes are fixed while the container is still in India. We also chase the originals so they reach you in time. Ask for a free sourcing review to tighten your document flow.

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