Demurrage & Detention Explained — And How Royal Foods Distribution Helps You Stay Ahead

In global logistics, especially containerized freight, few topics cause as much confusion and unexpected expense as Demurrage (DEM) and Detention (DET). These two terms represent charges that, when misunderstood or poorly managed, can result in thousands of dollars in fees. Whether you're importing perishable goods or general cargo, understanding DEM & DET is essential for running an efficient supply chain.

At Royal Foods Distribution, we’ve helped importers navigate these charges for years — especially those moving time-sensitive, cold chain cargo. But first, let’s take a deeper look at what these charges actually mean and why they happen.

What Is Demurrage?

Demurrage is a fee charged by the shipping line when your full container stays at the port terminal or container yard beyond the "free time" provided. Free time usually ranges from 3 to 7 days, depending on the port, carrier, and contract terms.

Demurrage begins after your container is offloaded from the ship, but hasn’t yet been picked up. During this time, the container is occupying space at the terminal, and the shipping line passes those storage costs on to you.

Why Does Demurrage Happen?

Common causes include:

Customs delays or holds

Incomplete or missing documentation

Lack of chassis or truck availability

Delays in securing a warehouse appointment

Port congestion or labor shortages

The average demurrage fee can range from $150 to $300 per container per day, and often escalates the longer the container sits.

What Is Detention?

Detention fees begin after you pick up the container from the terminal. If you don’t return the empty container within the allotted time — usually 2 to 5 days — detention charges apply.

In this case, the carrier is not charging for port space, but for the use of their container. From the moment it leaves the terminal until the time it’s returned, that container is technically on "rental" — and you’re billed for the extra days.

Why Does Detention Happen?

Delays in unloading cargo at the destination

Warehouse unavailability or limited receiving hours

Truck scheduling conflicts

Lack of labor or equipment to process the container quickly

Like demurrage, detention fees can climb rapidly. Depending on the carrier and region, rates can start at $100+ per day and increase incrementally.

Why These Charges Are a Growing Problem

In recent years, global supply chains have seen more congestion and bottlenecks than ever before — especially at high-volume ports like Los Angeles, Long Beach, and Oakland. Free time is often short, and even small delays in coordination can lead to costly charges.

Importers of frozen and perishable goods are particularly vulnerable. Not only are they racing the clock to avoid spoilage, but they’re also at higher risk for inspection holds, which can further delay pickup and unloading.

The Difference Between Demurrage and Detention — Summarized

How Royal Foods Distribution Helps Minimize These Charges

At Royal Foods Distribution, based in Santa Clara, we specialize in cold storage and drayage for frozen and refrigerated cargo. Our operation is built to help clients avoid these fees by:

Offering rapid container pickup and return services from major California ports

Providing immediate cold storage (300-pallet capacity) for quick unloading

Coordinating USDA/FDA inspections onsite thanks to our I-House status (I-95)

Monitoring container timelines and sending alerts before fees are triggered

In short, we don’t just store your goods — we help you move smarter, faster, and within the rules that keep your costs under control.

Final Thoughts

Demurrage and detention are not just fine print — they’re high-cost risks built into every shipment. As supply chains become more complex and ports continue to face pressure, managing these fees is no longer optional — it's critical.

At Royal Foods Distribution, we make it our mission to help you understand, prevent, and eliminate unnecessary DEM & DET charges. That’s the value of working with a logistics partner that understands both the urgency of perishables and the discipline of compliance.