Demurrage FAQs
A demurrage charge is a punitive cost assessed to organisations when ocean freight containers have exceeded the allowable 'free days on quay' as contracted with an ocean carrier or forwarder. Demurrage charges are typically incurred on a per day basis.
Demurrage cost is calculated on a per container basis as follows:
(Total days on quay - contracted free days) x (per day demurrage charge)
Demurrage costs are most commonly incurred due to a lack of visibility into when freight is arriving at port. Investing in a platform that provides reliable, centralised visibility into container ETAs and that allows you to seamlessly share this information with hauliers and warehouses is one of the best ways to mitigate delays collecting goods at port (and the associated costs).