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What Is the Difference Between Demurrage, Detention and Storage?
An import container that is not collected from the terminal on time may incur both demurrage and storage. After gate-out, a late empty return may trigger detention. These charges are often grouped under the vague label “container storage”, causing businesses to budget against the wrong tariff, request free time from the wrong party, or assume that a carrier extension automatically covers terminal storage. The result can be escalating daily charges, difficult debit-note reconciliation and disrupted delivery plans. This guide distinguishes demurrage, detention and storage by container location, occupied asset, charging party, start and end events, free-time mechanism and the data that should be locked before ETA.
QUICK FACTS
A charge associated with carrier equipment kept inside a terminal, port or depot beyond the applicable free time.
A charge associated with carrier equipment kept outside a terminal, port or depot beyond free time before empty return or equipment hand-back.
A charge for occupying yard, warehouse, terminal or CFS space after the facility’s free period.
The no-charge period for a specific charge code. Demurrage, detention and storage may have different day counts, clocks and approving parties.
A D&D extension from the carrier does not automatically extend storage; customs clearance or a delivery order does not by itself stop the clocks.
SCOPE OF APPLICATION
This article focuses on containerised ocean freight, especially FCL shipments using carrier-owned containers – COC, for both imports and exports.
- For LCL/consolidated cargo, the consignee normally does not directly hold the carrier’s full container. More common charges are CFS storage, warehouse storage, handling or cargo storage under the CFS tariff.
- For SOC – shipper-owned containers, demurrage/detention treatment may differ because the equipment is not owned by the carrier, while terminal storage can still apply.
- Reefer, DG, OOG, flat-rack, open-top and special equipment may have separate free time, plug-in, monitoring, power and handling tariffs.
- Never apply one carrier’s or terminal’s rules to another. Check the effective tariff, service contract, booking confirmation and terminal rules.
KEY TERMS
| Term | Meaning | Operational role |
|---|---|---|
| Demurrage – DEM | Charge for carrier equipment remaining inside a terminal, port or depot beyond free time. | Controls dwell time of loaded containers awaiting pickup or vessel loading. |
| Detention – DET | Charge for carrier equipment held outside the terminal, port or depot beyond free time. | Controls the time a shipper/consignee retains equipment for stuffing, devanning and return. |
| Storage | Charge arising when a container or cargo occupies yard, warehouse, CFS or terminal space beyond the free period; the charging party may be the terminal/port/CFS or the carrier under the applicable tariff and local arrangement. | Compensates the facility for occupied ground or storage capacity. |
| Free Time | Number of days or period exempt from a specific charge code. | Determines the first billable day. |
| Combined D&D | A single continuous free-time/charging period combining demurrage and detention. | May run from a carrier-defined start event to empty return or the relevant export event. |
| COC / SOC | COC is carrier-owned equipment; SOC is shipper-owned equipment. | Equipment ownership affects D&D scope but does not necessarily remove storage. |
HOW THE CHARGES WORK
After discharge and availability, the container remains inside the terminal. Once free demurrage expires, the carrier may charge demurrage; the terminal may separately charge storage.
Once the container leaves the terminal, the demurrage period generally ends and detention starts under the tariff. Late empty return after free detention may trigger detention.
Detention commonly covers empty pickup to full gate-in, while demurrage covers full-container dwell in the terminal before loading. Exact clocks may be reversed or combined by tariff.
A carrier may grant one continuous allowance instead of separate DEM and DET periods. Confirm the start event, end event and whether storage is expressly included.
DEM/DET are commonly invoiced by the carrier, NVOCC or their agent. Storage may be invoiced directly by a terminal, port or CFS, or charged by the carrier/NVOCC under its tariff and local arrangement; it should not automatically be described as a mere pass-through. The invoice payer may not be the final cost bearer under the sales contract.
DEMURRAGE VS DETENTION VS STORAGE
| Criterion | Demurrage | Detention | Storage |
|---|---|---|---|
| Occupied asset | Carrier equipment/container | Carrier equipment/container | Yard, warehouse, CFS or terminal space |
| Typical import location | Inside terminal/port/depot | Outside terminal/port/depot | Inside yard/warehouse/CFS |
| Typical charging party | Carrier or carrier agent | Carrier or carrier agent | Terminal, port, CFS or carrier/NVOCC under the applicable tariff and local arrangement |
| Trigger | After DEM free time under availability/discharge or tariff event | After DET free time from gate-out or tariff event until empty return | After the storage free period under the terminal tariff, carrier tariff or applicable local arrangement |
| Typical unit | Container/day by size and equipment type | Container/day by size and equipment type | Container/day, TEU/day, tonne/day, CBM/day or lot/day |
| Can overlap? | Yes, commonly with storage while the container remains in the yard | Usually not with import DEM after gate-out, except combined or special rules | Can overlap with demurrage and may be independent of D&D |
| Who grants relief | Carrier or service contract | Carrier or service contract | The charging party under the tariff/contract: terminal, port, CFS, carrier or NVOCC |
FREE TIME AND CHARGING PRINCIPLES
There is no universal number of free days or single day-counting method. Confirm:
- Start event: vessel discharge, container availability, full gate-in, empty gate-out or another tariff event;
- End event: full gate-out, empty return, vessel loading or another stated event;
- Calendar days or working days, and whether the first/last day is included;
- Separate free time or Combined D&D;
- Tiered daily rates and equipment category;
- Whether storage, reefer plug-in, monitoring and electricity are separate.
Billable days = Days falling within the tariff charging period − confirmed free days.
Total charge = Sum of billable days in each tariff tier × the applicable daily rate.
Storage must be calculated on its own clock and tariff unless expressly included.
Integrated example: where a carrier confirms free demurrage through Day A and the container gates out on Day C, bill only the days from the first tariff-defined billable day through Day C. After gate-out, detention follows its own clock until empty return. During the in-terminal period, storage may still accrue if terminal free storage has expired.
DOCUMENTS AND DATA TO CHECK
| Document/data | Issuer or confirmer | Purpose | Fields to lock |
|---|---|---|---|
| Booking Confirmation / Service Contract | Carrier or forwarder | Agreed D&D conditions | Free DEM, Free DET, combined/separate, equipment type, trade |
| Arrival Notice / Container Availability | Carrier or agent | Arrival and pickup clock | ETA, discharge, availability, terminal |
| D/O or EDO | Carrier/forwarder | Cargo release, not a free-time extension | B/L, container, release validity |
| Terminal Tariff / Storage Invoice | Terminal, port or CFS | Storage free period and rates | Start event, unit, tax, tiers |
| Gate-in/Gate-out and EIR | Terminal/depot | Evidence of equipment events | Date/time, container number, condition |
| Empty Return Confirmation | Depot/carrier | Stops the detention clock | Return location, date/time, acceptance |
| Debit Note / Invoice | Carrier/terminal/forwarder | Reconciliation | Charge period, rate, FX, tax, payer |
CONTROL PROCESS BEFORE AND AFTER ETA
Require separate disclosure of free demurrage, free detention, free storage, combined/separate terms and exclusions.
Check ETA, discharge, availability, gate-out, empty return and calendar/working-day rules.
Review documents, permits, specialised inspection and duty before ETA; do not assume clearance stops charges.
Lock container pickup, devanning slot, warehouse labour and empty-return depot before gate-out.
Maintain separate DEM, DET and Storage columns unless the tariff expressly combines them.
Extend D&D with the carrier and storage with the terminal/port/CFS. Obtain written confirmation.
Match EIR and gate events against debit notes; verify tiers, equipment type, tax and exchange rate.
File booking, free-time confirmation, D/O, EIR, empty return receipt and invoices by container.
COMMON RISKS AND ERRORS
Cause: both arise while the container is in port. Impact: one invoice is omitted. Control: separate equipment and ground-space charges.
Cause: quotation says only “14 days free”. Impact: terminal storage remains payable. Control: require charge-code detail.
Cause: calendar/working-day and first/last-day rules are not checked. Impact: under-budgeting. Control: use the effective tariff.
Cause: release is mistaken for a stopped clock. Impact: DEM/Storage continue. Control: coordinate truck, customs and terminal slot.
Cause: empty-return instructions are not checked. Impact: DET may continue. Control: confirm depot and gate hours.
Cause: gate events are not retained. Impact: invoice disputes become difficult. Control: retain EIR, handover photos and return confirmation.
Cause: relying only on CIF/FOB. Impact: payer disputes. Control: review B/L, SI, booking and sales contract.
Cause: rates and rules change. Impact: inaccurate budget. Control: retain the applicable tariff and effective date.
OPERATIONAL REFERENCES
Demurrage, detention and storage are commercial charges governed by the contract of carriage, carrier/NVOCC tariffs and terminal tariffs; there is no single fixed rate or day-counting rule for every trade. The references below were reviewed on 16 July 2026.
Vietnam import D&D information, including local tariff and the payment/EDO-extension workflow; verify the version effective for the shipment.
Import and export D&D terms, including gate-in, gate-out and loading events.
Definitions of demurrage, detention, combined and storage costs.
Free time and D&D explanation; country tariff applies.
Vietnam local charges and DEM/DET tariffs; at the review date, the page lists a D&D tariff effective 1 April 2026, but the shipment-specific effective version must still be selected.
FAQ
Yes. After both free periods expire, the carrier may charge demurrage while the terminal charges storage.
Usually at the tariff-defined gate-out event, after which detention begins. Verify first/last-day counting.
Yes. Customs status is separate from operational charge events such as gate-out and empty return.
No. Flexibility may improve, but total days, start event and separate storage determine the real outcome.
Not unless the carrier confirms combined treatment or amends both allowances.
The LCL consignee usually does not retain the full carrier container; CFS or warehouse storage is more common.
The party invoiced by the carrier, NVOCC, terminal or CFS pays under the service terms and credit arrangement; final allocation between seller and buyer depends on the sales contract, Incoterms and the actual payment agreement.
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