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What is Demurrage?

Demurrage is a penalty fee charged when equipment — typically a shipping container, rail car, or chassis — is held beyond the free time allowed at a port, rail terminal, or customer facility. In drayage and intermodal, demurrage and detention are distinct concepts and often stack.

How it works

At a port or rail terminal, containers must be picked up or returned within a free period (typically 3–5 days). Beyond that window, the ocean carrier or rail carrier charges demurrage per day. Chassis detention charges accrue separately for the chassis equipment itself.

Who uses it

Drayage, intermodal, and port carriers. The cost is often a pass-through to the shipper, but the carrier is on the hook if not documented and billed quickly.

Why it matters

Demurrage rates have climbed sharply since 2021 and can reach $300+/day per container. Poor documentation or slow billing leaves carriers absorbing costs the shipper should pay.

In Rig Terminal

Rig Terminal tracks container pickup and return times, chassis assignment history, and surfaces demurrage and detention accrual as loads near free-time cutoffs.

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