Definition
Demurrage is the charge for holding a container or other equipment past agreed free time at a terminal, port, or yard. It is not the same as detention of the tractor/trailer waiting at a plant or DC.
If nobody stores free time or gate-out, demurrage is always “someone else’s fault.”
Related: accessorials · logistics yard · freight audit.
What it means in practice
Demurrage bills prolonged use of the line/terminal container or equipment. Detention bills truck or trailer time at your plant.
Without written free time and in/out stamps, accounts payable pays blind or disputes without a base.
Why it matters by role
| Role | What they need | Without demurrage control |
|---|---|---|
| Traffic / operations | Free time and real appointments | Container “forgotten” in the yard |
| Freight procurement | Who absorbs the charge | Invoice surprise |
| Accounts payable | Gate-in/out and owner | Pays with no dispute |
| Shipper | True corridor cost | OTIF fine and margin broken |
Minimum fields in the trip file
| Field | Question | Note |
|---|---|---|
| Free time | How many free days/hours? | Contract or rate |
| Gate-in / gate-out | When did equipment enter and leave? | Evidence |
| Equipment type | Container, chassis, other? | Sets the tariff |
| Owner | Terminal, 3PL, plant, carrier? | For dispute |
| Amount / day | Demurrage rate? | On the rate card |
How to govern demurrage in 5 steps
Set free time
In writing
Record gates
In and out
Alert early
Before it expires
Assign an owner
Who frees the equipment
Audit the invoice
Before payment
Expensive mistakes
1.Confusing demurrage with detention
You argue with the wrong party and the charge ages.
2.Free time only by word of mouth
On the invoice, whoever has the terminal PDF wins.
3.No alert on day one of excess
Cost grows daily and nobody acts.
4.Paying without gate-out
Accounts payable cannot validate billed days.
OCL and the trip file
OCL helps tie equipment milestones and alerts to the trip so demurrage is audited with evidence. It does not set terminal tariffs. OCL can stamp invoices and Carta Porte.
Sources and further reading
Key takeaways5 points
- Demurrage = a charge for holding a container or equipment past free time at a terminal, port, or yard — different from truck detention at a plant.
- At Manzanillo or Lázaro Cárdenas, short free time spikes demurrage: document gate-in/out, owner, and free days in the trip file.
- Accounts payable must see demurrage as an auditable line (who caused the excess), not a faceless “port cost.”
- Connect accessorial charges, yard, and freight audit.
- OCL ties equipment milestones to the trip. It does not run the terminal or set demurrage tariffs. OCL can stamp invoices and Carta Porte.
Does your demurrage have free time — or only an invoice?
Frequently asked questions
A charge for holding a container or equipment past free time at a terminal, port, or yard.
Demurrage is for equipment/container at terminal or yard; detention is usually tractor/trailer waiting at the plant.
Agreed free time, gate-in/out, and who caused the excess days.
Yes: Manzanillo, Lázaro Cárdenas, and others charge demurrage when free time expires.
It depends on the contract and Incoterms®; the trip file must name the operating owner.
It joins milestones and alerts in the file so accounts payable audits before paying.