Demurrage
- What it is: A charge applied by the shipping line when a container stays inside the port/terminal after unloading from the vessel, but before being collected
- Charged by: The shipping line.
- Location of container: Still inside the port/terminal area.
- Purpose: Compensates the shipping line for the use of their container.
Detention
- What it is: A charge for keeping the container outside the port (e.g. at a warehouse, customer site) beyond the allowed time.
- Charged by: The shipping line.
- Location of container: Outside the port (inland).
- Purpose: To encourage timely return of the shipping line’s container so they can use it again.
Quay Rent (also called Port Storage or Terminal Storage)
- What it is: A fee charged by the port or terminal operator for containers that sit at the quay or terminal after the free period.
- Charged by: The port or terminal operator (separate from shipping line).
- Location of container: On the terminal ground (same as where demurrage occurs).
- Purpose: For occupying physical space in the terminal.
Example:
- Vessel arrives and container is unloaded.
- If you don’t collect it within the free time → Demurrage + Quay Rent may start to apply.
If you collect it but keep it too long before returning the empty container → Detention applies.