Glossary · Shipping
What is D&D (Demurrage and detention)?
Charges for keeping a carrier's container too long: demurrage while it sits at the terminal, detention while it is out of the terminal past its free time.
Shipping lines allow a number of free days for each container. Demurrage generally applies when a loaded container stays at the terminal beyond its free time, for example while waiting for customs release or a truck. Detention generally applies when the container is out of the terminal, at your warehouse, and is returned late. Definitions and free days vary by carrier and port.
Both charges are daily and add up quickly, especially during port congestion or a customs exam. They are a common reason a landed cost ends up higher than planned.
Avoid them by filing the ISF and entry documents early, having the release (telex or original B/L) in place before arrival, booking the trucker in advance and planning unloading at the delivery site. Extra free time can also be negotiated at booking.
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