Demurrage

Demurrage is a charge levied by the shipping line or terminal when a loaded container remains at the port or terminal beyond the allotted free time after the vessel has been discharged. It is essentially a penalty for occupying terminal space longer than permitted. Demurrage charges accrue daily and can escalate significantly the longer the container sits uncollected.

In Freight Forwarding

Demurrage is one of the most common unexpected costs in international shipping. Free time typically ranges from 3 to 7 days depending on the port, carrier, and trade lane. Delays in customs clearance, missing documentation, consignee unavailability, or payment disputes are frequent causes. Forwarders must proactively manage the clearance and collection timeline to avoid these charges on behalf of their clients.

How CargoGen Handles It

CargoGen records gate-in, gate-out and status per container on the shipment, so the office can see how long a box has been sitting and who is waiting on what. Demurrage and detention are charge categories on the shipment's financials, which keeps the cost visible on the job's margin rather than as a surprise at month end.