Cost structure / standard tiers
Demurrage is calculated on a sliding scale, with the daily rate increasing the longer the container remains in the terminal.
| Days Past Free Time | Typical Daily Rate |
|---|---|
| Days 1-4 | $150-$200/day |
| Day 5-7 | $300-$400/day |
| Beyond day 7 (carrier/terminal-dependent) | Further escalation possible, varies by contract |
Rates vary by carrier, port, and the specific service contract in place, and most carriers apply the escalating structure automatically with no grace period once free time expires.
Risk mitigation / operational guidance
- Pre-arrange drayage appointments before the vessel arrives, so pickup can occur as soon as the container is available rather than after free time has already started counting down.
- Track free-time windows directly through the carrier's portal or an EDI feed, since the LFD posted at discharge can shift due to vessel delays or customs holds.
- If the destination terminal is congested, evaluate moving the container to a bonded off-dock yard before free time expires, shifting storage cost to a facility with potentially lower daily rates.
- Request a Last Free Day extension proactively when a delay is foreseeable — extensions granted before free time expires are far more likely to be approved than requests made after demurrage has started accruing.
- Track demurrage and detention separately, since both can apply to the same shipment if delays occur both inside and outside the terminal.