Storage charges and demurrage

Storage charges arise when cargo remains in a facility, while demurrage may describe different overrun charges depending on mode and contract.

Definition

Storage means charges for keeping cargo beyond a free or tariff-defined period. Demurrage is mainly used in container shipping for late use or return of equipment in a terminal context. The exact terms and calculation must be taken from the applicable tariff or contract.

Why does it matter?

Delayed customs release, missing documents or late collection can create costs that rise daily. Air freight quotations should use the precise term storage when container demurrage is not meant.

Key points

  • Confirm free storage time and when charging starts.
  • Monitor customs release and cargo availability actively.
  • Distinguish storage, demurrage and detention contractually.

Practical example

An import shipment cannot clear because an authorisation is missing. After free time expires, the terminal charges storage per day and weight band.

Common mistakes

  • Calling every waiting-time charge demurrage
  • Missing weekends and minimum charges in the tariff
  • Treating arrival as the start of free collection time

General professional information, not legal or customs advice. Requirements may vary by goods, route and current regulations.