Demurrage and Detention Charges: Who Pays and How to Dispute Them

Few things sour an import transaction faster than a demurrage or detention invoice that dwarfs the value of the cargo. These charges are legitimate when properly applied — but in practice they are frequently miscalculated, double-charged or wrongly imposed. Knowing the rules is your first line of defence.

Demurrage vs Detention

Demurrage is charged when a container remains within the terminal or port beyond the free period — the space is occupied and the terminal's operations are impeded. Detention is charged when the container is released to you but not returned within the free time — the equipment is with you, unavailable to the carrier. They are separate charges, from separate parties, on separate clocks.

Who Is Responsible

Liability follows the contract of carriage and the bill of lading. As a general rule, the party holding the equipment when time expires bears the cost — often the importer or consignee, but sometimes the shipper or freight forwarder, depending on the terms and who caused the delay.

Understand Your Free Time

• —Free days typically run from three to seven days, varying by carrier and terminal
• —Check how weekends and public holidays are counted in your tariff
• —Demurrage and detention each have their own free time and charging scales
• —Get the free time and rates in writing before the vessel arrives

Why Charges Balloon

• —Original documents arriving after the vessel, blocking release
• —Cargo placed on hold by customs or regulators
• —Discrepancies between the bill of lading and the actual cargo
• —Carriers issuing release orders late or withholding them
• —Congestion at the terminal beyond the importer's control

A demurrage invoice is a claim, not a verdict. Every charge should be verified against the tariff and the free time actually allowed.

How to Dispute Charges

• —Demand a written, line-by-line breakdown of every charge
• —Compare the calculation against the tariff and your contract of carriage
• —Verify the free time actually applied and the counting of days
• —File a formal written dispute with the carrier or terminal operator
• —Negotiate a waiver or reduction — many carriers reduce on request with evidence
• —Escalate to the Nigerian Shippers' Council or the Nigerian Ports Authority
• —Pursue legal remedies where the charges are wrongful or inflated

Practical Tips

• —Prepare documentation before the vessel arrives, not after
• —Track your free time from the day the container is released
• —Move cargo out of the terminal and return equipment promptly
• —Insure your cargo and freight exposure
• —Never pay a disputed invoice under duress without preserving your position in writing

If a carrier is threatening a lien over your cargo to enforce disputed charges, or a terminal is blocking release, act immediately — legal intervention at the right moment can save the entire value of the consignment.