Learn what demurrage and per-diem means below, but remember: here at Shippabo, we want to prevent demurrage and per-diem because it will cost you time and money.

Demurrage is when cargo is left at the terminal beyond the allotted free time. The free time is determined in your contract and can vary, although the standard time is four or five days. 

After the allotted time, you are charged a daily fee for storage until you pull your cargo from the terminal. The demurrage costs will differ based on terminal or carrier and range from $75 to $150 per container per day. The charges increases the longer the cargo is at the terminal and must be paid before you can pick up your container.

How can you avoid or minimize demurrage? You can pre-clear your cargo and issue delivery instructions to your inland carrier ahead of time. Coordinating with the trucker earlier can get your cargo out before the free time is up. If you know the season or port is specifically congested, have a back up trucker planned.

A per-diem charge is applied when you require the use of equipment from the carrier beyond the set free time. The free time and charges vary depending on type of equipment and carrier. Per diem charges accumulate until equipment is returned to the airline, port, or rail yard.