How are demurrage and detention calculated, and how do I avoid them?
Demurrage is charged by the port when a container sits inside the terminal past free time; detention is charged by the shipping line when an unloaded container is kept outside the terminal too long. Both add up fast - planning clearing before the vessel arrives is the best prevention.
**Definitions:**
- **Demurrage** - Daily charge by the port/terminal once free storage time inside the terminal expires. Free time is usually 3-7 days from container discharge.
- **Detention** - Daily charge by the shipping line once free time for using the empty container outside the terminal expires. Free time is usually 7-14 days from gate-out.
- **Combined "demurrage + detention" (D&D)** - Some carriers quote a single combined free time of 10-21 days.
**Typical daily rates** (per 20ft container, indicative, varies sharply by port and carrier):
- Lagos / Apapa: USD 60-150/day demurrage; USD 40-100/day detention - notoriously expensive
- Durban: USD 30-80/day combined
- Mombasa: USD 40-100/day combined
- Tema: USD 50-120/day combined
- Jebel Ali: USD 30-70/day combined
Rates escalate after the first 5-10 days (sometimes doubling or tripling).
**Most common causes:**
1. Import documents not ready when the vessel arrives (missing pre-shipment certificate, wrong HS code, missing Form M/IDF)
2. Delayed payment of import duties
3. Inspection holds for regulated goods (steel, electrical)
4. Truck shortages at peak season
5. Port congestion (especially Apapa, Tema, Mombasa during rainy season)
**How to avoid them:**
- File the import licence / pre-shipment certificate **before** the goods ship from China
- Use a freight forwarder who tracks vessel ETA and pre-positions documents
- Pay duty within 48 hours of assessment
- Negotiate longer free time at booking - many carriers will extend to 14-21 days combined on request, especially for repeat shippers
- Use a single consolidated B/L instead of several small ones
- For Nigeria specifically: budget for and plan around the typical 7-14 day extra clearance delay at Apapa