Port Demurrage refers to the overdue occupancy fee charged by the port or shipping company to the cargo owner when a container exceeds the free storage period at the terminal or yard. It usually occurs during import, due to the consignee failing to clear customs, pick up goods, or return the container in time. Usage scenarios include: no one picking up goods after arrival, customs clearance delays due to incomplete documents, consignee financial problems, etc. Notes: The free period varies by port and shipping company (usually 3-7 days); after exceeding, fees increase daily and may far exceed freight costs. Demurrage differs from Detention: the former is for staying within the terminal, the latter for overdue use of containers after leaving the terminal. Additionally, demurrage may arise from force majeure such as port congestion or strikes, in which case reduction or exemption can be applied for. Foreign trade practitioners should specify the party bearing demurrage in the contract and purchase cargo insurance to cover related risks.
📝 Examples
1. Because the importer failed to provide customs clearance documents in time, this batch of goods incurred high demurrage at the destination port, which was ultimately borne by the seller. (Note: Demurrage caused by document issues; cost responsibility should follow the contract.)
2. The shipping company notified us that the free storage period for containers is only 5 days; if the goods are still not picked up by the 7th day, a demurrage fee of USD 200 per day will be charged. (Note: Demonstrates the calculation method and timing of demurrage.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
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