In international shipping, demurrage refers to the overdue occupancy fee incurred when an importer fails to return a container within the shipping company’s designated free period, resulting in the container being held at a port or depot. Demurrage is the fee the shipper must pay if the container is not removed from the terminal after the free period.
In this article, Weefreight will share an interpretation of the 2025 new regulations on demurrage and detention, along with a guide to avoiding them. We hope this will be helpful.
… New Surcharges: Some ports have begun imposing new surcharges. For example, the “Carbon Emission Surcharge” implemented at the Port of Singapore in 2025 imposes an additional carbon tax of $8 per ton per day on overdue containers, encouraging shippers to adopt the “vehicle-to-ship” model.
Green Incentives and Policies: EU ports have implemented “Green Storage Incentives” since 2025. Shippers who can prove that overdue storage is due to waiting for new energy truck capacity can apply for a fee reduction of up to 30%, demonstrating the impact of environmental protection policies on port charges.
Different Starting Points for Free Periods: The starting point for free periods varies across ports in different regions. West Coast US ports use “completion of unloading” as the starting point, while some Southeast Asian ports use “customs clearance declaration date.” This discrepancy can result in cost differences of 5-8 days for the same shipment at different ports.
Different Charges for Specialty Containers: Specialty containers, such as reefers and open-top containers, have higher maintenance costs and thus carry rates 30%-100% higher than standard containers. For example, CMA CGM offers free shipping on reefer containers for the first four days, a 300 RMB/day charge for days 5-10, and a whopping 1,560 RMB/day after the 20th day.
Avoidance Guide
Advance Planning and Preparation: Prepare customs clearance documents in advance, ensuring all required documents are complete, accurate, and comply with the importing country’s regulations to avoid delays due to missing or incorrect documentation. Choose appropriate loading and unloading ports, taking into account their operational efficiency, infrastructure, and connectivity with surrounding logistics networks.
Rationally plan transportation time: From the booking stage, allow a 20% buffer to account for factors like port congestion and trailer shortages. For example, if the cargo is expected to arrive at the destination port in 10 days, plan the subsequent customs clearance, unpacking, and return process based on 12 days.
Understand Shipping Company and Port Policies: Before signing a shipping contract with a shipping company, thoroughly understand their free container days, free storage days, and the charges and calculation methods for demurrage and port detention. If you anticipate a longer customs clearance period at the destination port, you can negotiate with the shipping company in advance to extend the free container or storage period.
Real-time Tracking and Dynamic Adjustment: By integrating the real-time tracking system with port data, you can proactively initiate port relocation or transshipment plans when congestion is detected at the destination port, diverting cargo to secondary hub ports. You can also agree with the freight forwarder on a “demurrage cap” clause, capping the fee at 1.5 times the container’s replacement cost to effectively limit losses.
Note: For special circumstances, you can consider “returning the container to a different location” for full container loads, but be sure to ask the freight forwarder in advance which storage yards can handle this. If you anticipate a delay, you can contact the port in advance to request an “extension of storage,” providing a reasonable justification, such as delays in customs clearance documentation.
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