Demurrage & Detention Guide India

When This Applies

Demurrage and detention charges apply when import containers or cargo remain at the port, terminal, or container freight station beyond the free time allowed by the shipping line or port. These charges accumulate daily and can exceed the value of low-margin cargo.

Documents Needed

• Delivery order from the shipping line or agent
• Bill of Entry filing acknowledgement
• Out of Charge copy
• Container movement records from the port/CFS
• Transport invoices showing pickup and return dates

Common Mistakes

• Not tracking free time — shipping lines typically allow 7–14 days free detention after discharge
• Delaying Bill of Entry filing until after cargo arrives — pre-filing saves critical days
• Missing regulatory documentation, causing customs holds and extending port stay
• Not arranging inland transport before OOC is issued
• Ignoring port holiday schedules — free time includes holidays in most contracts

Estimated Timeline and Process

Free time (7–14 days): Period after container discharge during which no demurrage or detention applies.

Demurrage (after free time): Charged by the port/terminal for keeping the container on their premises. Typically ₹300–₹1,500 per day per container.

Detention (after free time): Charged by the shipping line for not returning the empty container. Typically ₹500–₹2,000 per day.

Total charges can accumulate rapidly: A 10-day delay on a 20ft container can cost ₹15,000–₹35,000 in combined demurrage and detention.

How Sea Air Cargo Systems Can Help

We pre-file Bills of Entry, track container discharge, and arrange transport before customs release to minimise port stay. Our proactive approach typically reduces clearance time to 24–48 hours after OOC. Contact us to avoid demurrage.

Understanding Free Time Limits

• Air cargo: Typically 3 days free time after arrival
• Sea FCL: Typically 5–7 days free time at port, plus 7–14 days container free time
• Sea LCL: Typically 5 days free time at CFS after de-stuffing
• Free time varies by shipping line, port, and CFS — always confirm in writing

How Demurrage and Detention Are Calculated

• Demurrage: Charged when cargo stays at the port or terminal beyond free time
• Detention: Charged when the container is held outside the port beyond free time
• Rates are per day and increase after certain thresholds (e.g., higher rate after 10 days)
• Shipping lines publish tariff schedules — request them before booking

Cost Factors to Plan For

Demurrage at major ports ranges from ₹2,000 to ₹15,000 per day for a 20ft container, and higher for 40ft. Detention rates are ₹1,000–₹5,000 per day. A 10-day delay can cost more than the freight itself. Use our Shipping Time Estimator to plan arrival and clearance timing.

Strategies to Avoid Demurrage

• Pre-file your Bill of Entry before cargo arrives
• Ensure duty payment funds are ready and AD Code is linked
• Respond to customs queries within 24 hours
• Book inland transport before Out of Charge is issued
• Negotiate extended free time with your shipping line for high-complexity cargo

When to Contact a CHA

A CHA can pre-file your documents, track shipment arrival, and clear customs before free time expires. Contact Sea Air Cargo Systems for demurrage avoidance strategies.

Frequently Asked Questions