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Demurrage and Detention

AMG Logistics

People often mistake demurrage for detention and vice versa; this page explains the distinction and reminds us that the two terms cannot be used interchangeably.

Demurrage is a charge levied by the shipping line to the importer for not taking delivery of the full container and move it out of the port/terminal area within the allowed free days.

Detention is a fee payable by a shipper for holding on to a container beyond the free allotted time after leaving the port/terminal to load or unload the container.

Demurrage and Detention charges in Nigeria (2021)

AMG Logistics

Demurrage charges relate to cargo while it is still in the container while Detention charges relate to equipment while the container is empty either before packing or after unpacking.

Demurrage and Detention charges vary based on the size of the container, and it increases daily.

In Nigeria, Sea freight demurrage is charged as follows:

Period 1: N1800(20ft) N4000(40ft)
Period 2: N6000(20ft) N8000(40ft)
Period 3: N8500(20ft) N12500(40ft)
Last Period: N18500

Airfreight demurrage is charged at N13.5/kg multiplied by the number of days.

When do Demurrage and Detention start counting?

Demurrage and Detention start counting after the 3rd day of free usage and it counts on an incremental basis for sea freight.

Demurrage starts counting after the 7th day of free usage for air freight.

Demurrage and detention, in general, serve two purposes: compensating the shipping line for the use of its container, as well as acting as a motivator for the merchant to return an empty container with a quick turnaround time.

Adding to costs

If consignees are unable to pick up their equipment, several countries charge exorbitant fees. This may be due to financial, documentary, or contractual issues.

However, when consignors exceed the permitted number of free days, the containers have an impact on yard space, port productivity, and congestion. 

Ports impose these holding fees to encourage importers to handle cargo clearance problems and pick up containers on schedule, which causes the fees to start piling up.

Be sure to avoid unnecessary charges by contacting AMG Logistics to take care of your shipments

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AMG Logistics is a Lagos-based TRACE certified logistics company. Our services include Freight forwarding, Customs clearance, Trucking, Distribution, and Warehousing within Nigeria.

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Tel: +234 909 199 9866

sales.nigeria@amglogistics.com
+234 909 199 9866

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