Drayage Tips to Avoid Demurrage and Detention

Managing drayage operations involves more than route planning and scheduling. It comes with risk. Among the most costly and avoidable charges in containerized freight are demurrage and detention fees. These penalties can quietly eat into your margins if containers sit too long at the port or in your yard.

While the Ocean Shipping Reform Act (OSRA) introduced changes to help level the playing field between shippers and ocean carriers, detention and demurrage remain persistent issues. Inconsistencies in how carriers assess and enforce these charges continue to create frustration. As shipping lines tighten policies and congestion remains a challenge with tariff pull forwards and peak season approaching, understanding how these charges work and how to avoid them is essential to protecting your bottom line.

Understanding the Difference Between Demurrage and Detention

Demurrage and detention are two of the most misunderstood charges in international shipping. Demurrage refers to the fees imposed by ocean carriers when a container remains at the port or terminal beyond the agreed-upon free time. These charges accumulate daily and are meant to incentivize faster cargo pickup. Detention, on the other hand, applies once a container has left the port and remains outside, typically at a warehouse or in a truck yard, past its allotted return window. While both are time-based penalties, they apply at different points in the container’s journey, and both can significantly increase total landed costs if not carefully managed.

Why These Charges Are on the Rise

Over the past several years, several forces have contributed to an uptick in demurrage and detention charges. One of the biggest culprits is persistent port congestion, which continues to disrupt cargo flows despite improvements in global trade capacity. Labor shortages, unpredictable vessel schedules and weather-related disruptions are creating bottlenecks that limit shippers’ ability to retrieve containers on time.

At the same time, carriers are becoming less lenient. Many have shortened free time windows and raised daily fees to ensure quicker container turnover. These tighter policies have added pressure on shippers to move faster, often without regard to real-world constraints like trucking availability or customs clearance delays.

Technology plays a dual role in this environment. On one hand, blockchain tools and digital platforms are making it easier to track container status and manage documentation. On the other, they’re also giving carriers more precision in enforcing fee accruals. Meanwhile, growing environmental regulation and decarbonization initiatives are altering sailing schedules, which can unexpectedly shift arrival times and impact container availability.

Strategies to Minimize Cost Exposure

Avoiding demurrage and detention starts with tightening communication and documentation practices. Shippers must ensure accurate and timely submission of information, such as container numbers, Bills of Lading and customs paperwork, to avoid situations where a container sits idle while the demurrage clock is ticking.

Effective drayage planning is another key defense. Working with experienced drayage providers who understand port operations and local nuances can help ensure containers are picked up and returned within the free-time window. Some shippers are also turning to transloading solutions near the port, allowing them to unload containers quickly and return equipment before detention charges kick in.

Digital tools also offer a clear advantage. Transportation Management Systems (TMS) integrated with telematics or IoT sensors enable real-time visibility into container movements. Many of these platforms offer predictive alerts when a container is approaching the end of its free time, helping logistics teams adjust plans proactively. Dashboards and performance analytics also empower better decision-making by highlighting inefficiencies or delays in the transportation cycle. NTG’s ability to actively track detention and demurrage charges with terminal visibility is key in avoiding and disputing these charges.

Another important strategy lies in how you structure your carrier agreements. Many shippers now negotiate terms that offer more favorable free time conditions, daily fee caps or built-in grace periods. Some ocean carriers have even begun offering flexible free-day extensions or dynamic slot booking through self-service portals, providing a level of operational agility that wasn’t widely available even a few years ago.

Additionally, shippers with broader supply chain flexibility can reduce exposure by leveraging modal diversity. For instance, rerouting through inland rail or barge terminals can reduce container dwell time at the port. Similarly, maintaining partnerships with nearby warehouses or cross-docking facilities can create a buffer that keeps goods moving even when congestion slows down standard lanes.

Looking Ahead: Technology and Policy Will Continue to Shape the Landscape

Emerging technologies and regulatory developments are poised to change the way shippers manage demurrage and detention risks. Artificial intelligence is being increasingly deployed to predict congestion, flag high-risk shipments and identify operational bottlenecks. These forecasting tools can help optimize booking patterns and prevent penalties before containers even hit the dock.

Building a More Resilient Freight Strategy

Avoiding demurrage and detention isn’t about reacting to fees after they occur—it’s about proactively designing a transportation strategy that eliminates the conditions where those fees can accumulate. That starts with full visibility into your container lifecycle, from booking to return. It requires smart technology, close carrier collaboration and strong operational planning.

Shippers that adopt these practices not only avoid unnecessary costs, but they also gain a more agile and predictable freight operation. In today’s competitive logistics landscape, that kind of consistency isn’t just an operational advantage. It’s a strategic one.

If you’re ready to take control of demurrage and detention costs, start by optimizing the drayage leg of your supply chain. Learn more about our drayage solutions or request a custom quote to see how NTG can help you move containers faster, smarter and more cost-effectively.

Nathan Crocker

Vice President, Drayage Operations

Nathan Crocker is the Vice President of Drayage Operations at NTG, overseeing strategy, technology partnerships, and day-to-day operations. He has held leadership roles within NTG, including General Manager and Assistant General Manager of Drayage.