DEM (Demurrage – Container Storage at Port)

Demurrage (DEM) is the fee charged when a container remains at the port after being discharged from the vessel but not collected within the free time allowance.

This typically occurs when customs clearance is not completed or transport arrangements are delayed.

DET (Detention – Container Storage Outside Port)

Detention (DET) is the fee charged when a container is taken out of the port but returned empty later than the agreed free time.

Storage Charge – Port Yard Storage Fee

Unlike Demurrage, Storage is a fee levied directly by the port when a container occupies yard space beyond the permitted free time. Businesses may face both DEM (charged by the shipping line) and Storage (charged by the port) simultaneously if a container remains in the yard too long.

Important: Storage is a port‑levied fee, not a shipping line charge.

 

Why Businesses Commonly Incur These Costs

1. Documentation not ready: vessel arrives but paperwork is incomplete, leaving containers stuck.
2. Collection plan not aligned with vessel schedule: trucks not arranged in time.
3. Poor monitoring of free time: miscalculation of dates, missing the deadline.
4. Lengthy customs inspection: no contingency plan, containers held longer than expected.

Daily charges can range from tens to several hundred USD per container depending on the shipping line. Just 3–5 days of delay can result in costs running into tens of thousands

 

Case Study: Company A’s Costly Lesson

Company A, a Vietnamese agricultural exporter, regularly ships to the US. In one recent consignment, the firm faced Demurrage, Detention and the risk of Storage charges, causing logistics costs to spike.

• Vessel arrival: Containers discharged, but import documentation was delayed by the overseas partner.
• Demurrage: Containers remained at port for 4 days beyond free time. The shipping line charged USD 80/container/day. With 10 containers, the total reached USD 3,200.
• Detention: After removal from port, containers were returned empty 3 days late due to warehouse congestion. The line charged USD 60/container/day, totalling USD 1,800.
• Storage risk: As containers occupied port yard space during the documentation delay, the port could also levy Storage fees in parallel with Demurrage, further inflating costs.

Unexpected total: USD 5,000, excluding potential Storage charges if yard delays continued.

Lessons learned:

• Container costs extend beyond freight – DEM, DET and Storage must all be managed.
• Proactive planning is more effective than reactive problem‑solving.

Negotiating suitable free time with forwarders and carriers, and monitoring yard occupancy closely, is essential to avoid overlapping charges

How to Avoid Demurrage, Detention & Storage

• Prepare documentation well before ETA.
• Track vessel schedules and arrival notices closely.
• Arrange transport in advance of discharge.
• Monitor free time for each shipment.
• Work with forwarders who provide early warnings and flexible support.

Controlling Container Costs to Boost Efficiency

Effective management of Demurrage, Detention and Storage helps businesses:

• Stabilise cash flow by avoiding unexpected charges.
• Reduce unnecessary logistics costs.
• Strengthen competitiveness with more consistent pricing for customers.

If your business has experienced container cost overruns, reviewing current processes is the first step to prevent “money lost in vain” in future. Don’t let hidden container charges drain your profits! Just a few days’ delay can add tens of thousands to your costs.

Vantage Logistics – with over 24 years of logistics expertise – is ready to support your business in controlling costs and enhancing operational efficiency.

Contact us today for detailed consultation!