Demurrage Fees Explained (2025) — What It Is, Costs & How to Avoid It Updated Dec 2025
Source: Federal Maritime Commission (FMC), U.S. Customs & Border Protection (CBP), major ocean carriers (Maersk, MSC, CMA CGM), North America and EU terminal tariffs, and WinsBS Research (2025).
What Is Demurrage in Shipping?
View Industry Definition
Demurrage is a daily storage fee charged by an ocean terminal or port when a full container remains inside the terminal after free time expires and past the Last Free Day (LFD), but before the container is picked up and gated out.
In practice, demurrage keeps containers moving by putting a cost on leaving cargo at the port too long. It is usually calculated per container, per calendar day, and can escalate in tiers (e.g., days 1–3, 4–7, 8+).
- Where it applies: Inside the marine terminal, while the container is still full and awaiting pick-up.
- Who charges it: The port or terminal (sometimes passed through by the carrier onto the consignee or forwarder).
- Trigger: Container not picked up by trucker or rail within agreed free time after Arrival Notice.
— WinsBS Research, Port Storage & Container Equipment Cost Benchmark 2025
How Demurrage Fees Work: Free Time, LFD & Daily Charges
| Element | Port / Terminal Context | Typical Practice / Range |
|---|---|---|
| Free Time | Number of days a full container can sit in the terminal after discharge without storage charges. | Commonly 3–7 days, varying by port, carrier contract, and equipment type (shorter in peak season). |
| Last Free Day (LFD) | The final calendar day of free time before demurrage starts. After LFD, daily fees apply. | Displayed on Arrival Notice and carrier tracking portals. |
| Demurrage Start | First day after LFD when the container remains in-terminal and unpicked. | Day 1 demurrage charges triggered if the box has not gated out by end of LFD. |
| Daily Fee Tiers | Ports often use escalating daily rates based on how long the container overstays. | Example: Days 1–3 at a base rate, days 4–7 at 1.5×, days 8+ at 2× or higher for congestion control. |
| Responsibility | Usually billed to the Importer of Record (IOR) or their forwarder. | Depends on Incoterms and contracts; many DAP/DDP deals push risk back to the seller. |
For cross-border e-commerce brands, demurrage turns an already-delayed FCL or LCL shipment into a compounding cost problem: while inventory is stuck at the port, marketplace listings face stockout risk and marketing campaigns lose their timeline.
Demurrage vs Detention — Key Differences for Importers
| Aspect | Demurrage | Detention |
|---|---|---|
| Where Fees Accrue | Inside the port or terminal while the container is still full. | Outside the terminal (yard, warehouse, customer site) after the container gates out. |
| What You Pay For | Using terminal space and equipment beyond free time. | Using the carrier’s container for longer than allowed free time. |
| Typical Trigger | Delays in customs release, DO issuance, truck appointment, or payment, causing missed LFD. | Delays in unloading, returning empties, or lack of truck capacity to bring the container back. |
| Risk Owner | Usually the importer or their forwarder, depending on Incoterms. | Typically the party controlling unloading and empty return (IOR or inland 3PL). |
| Impact on E-commerce | Inventory stuck at port, delayed inbound to FBA or 3PL warehouses. | Inventory at warehouse but cash tied up in rising container rental costs. |
Leading brands track demurrage and detention separately in their landed cost models and treat them as controllable KPIs, not “inevitable fees”.
Regional Patterns & Demurrage Practices (2025)
View Trade Lane Demurrage Characteristics
| Trade Lane / Scenario | Key Actors | Demurrage Considerations |
|---|---|---|
| Asia → United States (West/East Coast) | Carriers, terminals, truckers, customs brokers, CBP |
|
| Asia → EU Gateways (Rotterdam, Hamburg, Antwerp) | EU ports, customs, forwarders, IORs |
|
| US Inland Ramps & Rail Terminals | Railroads, inland terminals, truckers |
|
| Port to FBA / 3PL Warehouse Inbound | 3PLs, drayage carriers, Amazon FCs |
|
| LCL & CFS-Based Shipments | CFS operators, NVOCCs, forwarders |
|
Expert Insight — Why Demurrage Is a “Silent Tax” on E-commerce Inventory
View Analyst Commentary
Maxwell Anderson, Editor-in-Chief & Data Director, WinsBS Research:
1. Demurrage is not just a fee; it’s stuck inventory.
Every dollar spent on demurrage is tied to inventory that customers cannot buy. For fast-moving e-commerce SKUs, three extra days at port can erase the margin on an entire promotion cycle。
2. Most demurrage originates from planning gaps, not “bad ports”.
Our case studies show that demurrage spikes when factory completion, vessel ETA, customs filing, and truck capacity are planned in isolation。 When these milestones are linked to a single, shared Last Free Day, demurrage drops sharply。
3. Demurrage and detention must be tracked separately in your P&L.
Leading brands treat demurrage as a port storage KPI and detention as a container turn KPI。 Blending them into “misc. charges” hides root causes and blocks improvement。
4. FBA and DTC brands need demurrage-aware inbound routing.
For Amazon and Shopify sellers, missing port free time often triggers a chain reaction — late FBA check-in, lost Buy Box, and emergency air shipments to protect listings。 Routing inbound via flexible 3PL hubs reduces this chain reaction and keeps campaigns on calendar。
5. The cheapest ocean rate can become the most expensive once you add demurrage.
WinsBS benchmarks show that contracts with slightly higher base ocean freight but predictable demurrage rules often beat “cheapest spot” rates once port storage, truck waits, and LFD overruns are fully costed。
— WinsBS Research, Demurrage & Detention Impact on E-commerce Landed Cost 2025
Risk Radar — Demurrage-Related Risks (2025)
View Critical Risk Scenarios
- Missing Last Free Day and Accruing Multi-Tier Demurrage
- Customs Exam or Hold Extending On-Terminal Storage
- Late Delivery Order Issuance Blocking Container Pick-up
- Truck Capacity Shortage Before LFD at Congested Ports
- Port Free Time vs FBA / 3PL Inbound Appointment Mismatch
- Misreading Weekend / Holiday Rules in Demurrage Calendar
- LCL / CFS Storage Fees Overlooked in Cost Calculations
- Demurrage Not Tracked in Landed Cost or SKU Profitability
- Contracted Free Time Mismatch Between Carrier and Terminal
- LFD Not Synced to OMS / WMS and Promotion Timelines
Demurrage FAQ — Common Questions from Importers & E-commerce Brands
Is demurrage the same as detention?
No. Demurrage is a port storage fee for full containers that stay inside the terminal beyond free time。 Detention is a container use fee for boxes kept too long outside the terminal after pick-up。 Both can apply to the same shipment at different stages。
How are demurrage fees calculated?
Demurrage fees are usually charged per container, per calendar day, after the Last Free Day。 Tariffs often use tiered pricing (e.g., days 1–3 at a base rate, 4–7 higher, 8+ highest)。 Exact rates depend on the port, carrier contract, and equipment type。
Who is responsible for paying demurrage?
Responsibility depends on Incoterms and contracts。 In many DAP/DDP structures, the seller or logistics provider absorbs demurrage。 Under EXW/FOB/CIF deals, the importer usually pays。 Brands should clarify demurrage responsibility in both sales contracts and freight agreements。
Can demurrage charges be waived?
Sometimes. Terminals or carriers may partially waive demurrage for documented issues such as port strikes, system outages, or customs exams beyond the importer’s control。 However, waivers are discretionary and require fast documentation and tight communication between forwarder, carrier, and terminal。
How can we avoid demurrage on e-commerce shipments?
Key tactics include: tracking LFD by container, pre-clearing customs where possible, aligning truck capacity with cut-off times and receiving hours, and routing via 3PL hubs when FBA appointments are tight。 Many brands also set internal rules like “no cargo loaded without broker and DO confirmed” to prevent last-minute delays。
Turn Demurrage from a Surprise Charge into a Controlled KPI
For cross-border e-commerce, demurrage is where port congestion, customs complexity, and truck capacity collide。 A few extra days on-terminal can wipe out profits on a seasonal launch, delay FBA check-in, and force emergency air shipments to protect listings。
WinsBS helps brands bring demurrage and detention under control by:
- Mapping LFD, free time, and demurrage rules across your main ports and integrating them into OMS and WMS milestones。
- Coordinating customs brokers, truckers, and terminals so that DO issuance, clearance, and appointments line up before LFD。
- Using U.S. transit hubs and warehouses as buffers between port deadlines and FBA / 3PL inbound constraints。
- Feeding demurrage and detention data into your landed cost calculations, so unprofitable patterns are visible and fixable。
- Designing port and carrier selection that balances base freight rates with predictable storage and equipment cost exposure。
When demurrage is treated as an unavoidable “port tax,” brands end up paying more for the same inventory with no service benefit。 WinsBS turns demurrage, detention, and LFD management into one integrated workflow tied directly to your e-commerce SLAs。
WinsBS Blog Insights
Demurrage & Detention 101 for E-commerce Importers
A practical guide to how demurrage and detention are billed, where they appear in your landed cost, and how to set realistic LFD rules。
Read Full Guide →
When the Cheapest Ocean Rate Becomes the Most Expensive
WinsBS Research case studies where low base freight masked high demurrage and detention, and how smart routing reversed the math。
View Analysis →
Designing FBA & 3PL Inbound Flows to Avoid Port Storage Fees
How to connect ETA, customs clearance, truck scheduling, and FC appointments so importers avoid demurrage while stabilizing inventory flows。
View Benchmarks →Content Attribution & License
General definitions and public references are shared under the CC BY-SA 4.0 License。
Analytical insights and commentary labeled “WinsBS Research” are © WinsBS Research (2025) and licensed exclusively to WinsBS Wiki。
Data sources include FMC guidance on demurrage and detention practices, CBP and DHS documentation on customs processes, major carrier and terminal public tariffs, and WinsBS Research datasets on e-commerce landed cost and port storage risk。
* Information verified as of December 2025. WinsBS Research assumes no liability for regulatory, tariff, or schedule changes after publication.
