Demurrage is the charge for using a shipping line's container while the full box stays in the terminal beyond free time. Detention is the charge for using it after it leaves the terminal until it is returned empty to the depot beyond free time. Storage (penumpukan in Indonesia) is a separate terminal charge for yard space. All three are often tiered per day, so a few days' delay can cost far more than expected.
Three charges that get confused
For an FCL import container, the journey from vessel to empty depot runs three meters at once:
| Charge | Billed by | Starts | Stops | Pays for |
|---|---|---|---|---|
| Demurrage | Shipping line / its agent | Container discharged from vessel | Full container gates out of terminal | Use of the container in the terminal |
| Detention | Shipping line / its agent | Container gates out | Empty container returned to depot | Use of the container outside the terminal |
| Storage | Terminal operator | Container placed in the yard | Container gates out | Use of yard space |
For exports the pattern is similar but reversed: detention can run from the moment the empty box leaves the depot for stuffing, and storage runs if the full box enters the terminal too early or the vessel is delayed. Short definitions are in the glossary under demurrage, detention and free time.
Some lines combine demurrage and detention into a single free-time allowance, often called combined or merged free time. Terms and counting rules differ, so read the conditions in the quotation or on the line agent's website.
Free time and tiered tariffs
Free time is the number of charge-free days the line grants. It varies by line, route, container type (dry, reefer, special) and contract; there is no universal standard. Once free time runs out, tariffs are usually tiered: the longer the box stays, the higher the daily rate. Special equipment such as reefers and flat racks generally carries higher rates and shorter free time.
Points to confirm up front:
- Whether the discharge day and public holidays count.
- Whether the rate is per container per calendar day.
- The currency and exchange rate used for invoicing.
Terminal storage is also often progressive by dwell period, at rates set by each terminal operator. Check the official tariffs of the operator and the line, as figures change and differ between ports.
Worked example (hypothetical tariff)
Every figure below is hypothetical and does not represent any line's or terminal's tariff. It only shows how a tiered tariff behaves.
Assumptions for a 20' dry container:
| Component | Days | Hypothetical rate per container |
|---|---|---|
| Demurrage free time | Days 1–5 | USD 0 |
| Demurrage tier 1 | Days 6–10 | USD 25 per day |
| Demurrage tier 2 | Days 11–15 | USD 50 per day |
| Demurrage tier 3 | Day 16 onwards | USD 100 per day |
| Detention free time | 4 days after gate-out | USD 0, then USD 20 per day |
Case A. Three 20' containers are discharged on day 1. Because the SPPB is late, they gate out on day 12.
- Demurrage per container: 5 days × USD 25 + 2 days × USD 50 = USD 225.
- Three containers: USD 675.
- After stripping, the empties go back to the depot 7 days after gate-out: (7 − 4) × USD 20 = USD 60 per container, or USD 180 for three.
- Total equipment charges: USD 855, before terminal storage.
Case B. If the boxes gate out on day 18 instead, demurrage per container becomes 5 × USD 25 + 5 × USD 50 + 3 × USD 100 = USD 675, or USD 2,025 for three. Six extra days triple the demurrage bill. Model your own scenario with the Demurrage Calculator.
Documents that delay release
The most common cause of demurrage is not trucking but paperwork. For imports into Indonesia, a container can only leave the terminal once two releases are in place: one from customs and one from the shipping line.
- SPPB (Surat Persetujuan Pengeluaran Barang, the customs release approval) is issued after the PIB import declaration is processed. The green channel is usually fastest; the yellow channel adds a document check and the red channel a physical inspection, which can add several days. See customs channel.
- Delivery order (DO) is issued by the line's agent once the original B/L is surrendered or a telex release or sea waybill applies, and local charges, plus freight if payable at destination, are paid.
- Import restriction permits (lartas) handled through INSW. Goods that need a permit will be held until it is issued.
- Mismatched data between invoice, packing list, B/L and PIB, such as HS code, package count or weight, triggers queries.
The full document set is described in export and import documents in Indonesia, and a practical checklist is available in the Export-Import Checklist.
How to avoid demurrage and detention
- Negotiate free time before booking, especially for first imports, restricted goods or congested ports. Have it written into the quotation.
- Prepare documents before the vessel arrives. Send the draft PIB, invoice and packing list to your customs broker (PPJK) early, and make sure lartas permits are issued.
- Settle the B/L and local charges early so the DO is not waiting.
- Book trucks and warehouse unloading slots before the SPPB is issued, so boxes can leave at once.
- Return empties to the correct depot, clean, as instructed by the line's agent.
- Consider LCL when volumes are small and your warehouse is slow; see LCL vs FCL.
How to check an invoice
Do not pay demurrage and detention invoices without checking them. A practical routine:
- Match the discharge date on the invoice with terminal data or the arrival notice.
- Match the gate-out date with the gate receipt (such as the EIR or gate pass) and the return date with the empty depot's receipt.
- Check that the free time applied matches the quote or contract, including any extension that was agreed.
- Confirm the tiers and the number of days in each are applied correctly, and that the container type (20', 40', reefer) is right.
- If the delay was caused by another party, for example the terminal could not serve or the vessel discharged late, ask in writing about the line's waiver policy.
A tidy record of dates also lets you measure dwelling time yourself and improve the process for the next shipment.
Common mistakes
- Assuming free time starts when documents arrive, when it usually starts at discharge.
- Tracking demurrage only and forgetting that terminal storage and detention run separately.
- Not recording gate-out and depot return dates, which makes invoices hard to verify.
- Returning the empty to the wrong depot, which can trigger extra charges.
- Leaving demurrage risk out of landed cost; see landed cost and import taxes in Indonesia.
Plan and calculate early
Use the Demurrage Calculator to estimate what a late gate-out would cost, then check document readiness with the Export-Import Checklist. To reduce the number of containers you need to manage, optimise the load in the 3D load planner. All results are estimates; final invoices follow the official tariffs of the line and terminal operator.