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Forwarding5 min read

Demurrage and Detention: How Forwarders Stop Paying for Free Time

Container charges are among the most avoidable costs in ocean freight. They happen when nobody is watching the clock.

Logxa Team

Logistics software insights

Two charges, two clocks

Demurrage is charged for keeping a full container in the terminal beyond the free days — the clock usually starts at discharge and stops at gate-out.

Detention is charged for keeping the carrier’s container outside the terminal too long — the clock starts at gate-out and stops when the empty is returned.

Terms vary by carrier, port and contract, which is exactly why they’re easy to lose track of.

Why the charges happen

  • Customs clearance takes longer than expected and nobody escalates.
  • The consignee doesn’t know the free time and delays collection.
  • Empties sit at the consignee’s yard because nobody booked the return.
  • Free time is tracked in a spreadsheet that isn’t updated after discharge.

A simple control process

1. Record free time per container

Demurrage and detention days belong on each container record, not in someone’s inbox.

2. Capture the trigger dates

Discharge, gate-out and empty return dates start and stop the clocks. Your agents at destination should be able to enter them.

3. Alert before it’s too late

An alert on the day free time ends is too late. Alerts a few days before give operations time to push clearance or book the trucker.

4. Make the cost visible on the job

If charges do occur, they should land as costs on the job — and, where the contract allows, as charges to the customer.

Validate the basics

A mistyped container number means the wrong box is tracked. ISO 6346 check digits catch most typos on entry.

How Logxa handles it

Logxa’s forwarding software validates container numbers, tracks demurrage and detention free time per container, lets agents update dates, and runs operations alerts for free time, cut-offs and overdue ETAs every 15 minutes. See ocean freight software.

Put these ideas to work.

See how Logxa handles this in a 30-minute walkthrough tailored to your operation.

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