Demurrage is charged by the shipping line when a full container stays at the port or rail terminal beyond its free time; detention (also called per diem) is charged when the container is kept outside the terminal too long before the empty is returned; and storage is charged by the terminal operator for occupying space on terminal. Carriers such as Maersk, MSC, CMA CGM and others publish their own rates and free-time rules for Canada and update them from time to time.
Key takeaways
- Three different fees from two different parties: demurrage and detention (shipping line), storage (terminal).
- Free time is limited and differs by carrier, port, rail terminal and container type.
- Daily rates usually rise the longer a container stays.
- Most charges are avoidable with early customs clearance, fast pick-up and quick unloading.
The fees at a glance
| Fee | Who charges it | When it starts |
|---|---|---|
| Demurrage | Shipping line | Full container still at the port or rail terminal after free time |
| Detention / per diem | Shipping line | Container kept outside the terminal after free time, until the empty is returned |
| Storage | Terminal operator or railway | Container occupying terminal space after the terminal's free time |
| Combined D&D | Shipping line | Some carriers combine demurrage and detention into one free-time period |
Why carriers change these fees
Carriers adjust demurrage and detention to keep equipment moving, especially when terminals are congested or containers are scarce. Maersk and other lines have raised Canadian detention and demurrage rates in recent years, and changes are announced through customer advisories. Always check the current tariff on the carrier's website for your port, rail terminal and equipment type.
How free time works
- Free time usually starts when the container is discharged (port) or available for pick-up (rail terminal).
- Weekends and holidays may or may not count, depending on the carrier.
- Reefers, special equipment and hazardous cargo often get less free time.
- Importers with high volumes can sometimes negotiate extra free time in their service contract.
A simple cost example
A container picked up three days late and returned two days late can trigger three days of demurrage, three days of terminal storage and two days of detention, often at increasing daily rates. On a busy week this can cost more than the drayage move itself.
How to avoid storage, demurrage and detention
- Clear customs before arrival. A customs hold stops pick-up but not the clock.
- Pay freight and get carrier release early.
- Send the arrival notice to your drayage carrier immediately. Carriers listed in our directory by city, such as Toronto, Vancouver and Montreal, can plan pick-ups inside free time.
- Use pre-pulls. Moving containers to a carrier's yard before storage starts is often cheaper than terminal storage.
- Unload fast and use drop-and-pick if you can't unload on arrival.
- Return empties to the right depot. Check the return location; it may change.
- Negotiate free time in your contract if you import regularly.
- Keep records. Disputes are easier with proof of delays caused by terminal or carrier issues.
If you think a charge is unfair
Charges caused by terminal closures, carrier delays or appointment shortages can sometimes be disputed. Ask your carrier for its dispute process, and keep appointment records, emails and gate times. The Canadian Transportation Agency and industry groups have looked at detention and demurrage practices, so keep an eye on regulatory updates.
Related guides
Frequently asked questions
What is the difference between demurrage and detention?
Demurrage applies while the full container is still at the terminal after free time. Detention applies after the container leaves the terminal, until the empty is returned.
Who charges storage fees at Canadian ports?
The terminal operator (or the railway at rail terminals) charges storage for containers left on terminal beyond its free time.
How many free days do I get?
It depends on the carrier, the location and the equipment. Check your carrier's current tariff or your service contract.
Can I avoid demurrage if customs holds my container?
Usually not. The clock keeps running during a customs hold, so file documents early.
How can a drayage carrier help reduce these fees?
A good carrier picks up inside free time, offers pre-pull and yard storage, and returns empties quickly. Compare carriers in the ContainerIntermodal.ca directory.