Free to post · Verified carriers · Live tracking on every shipment
August 10, 2026

Drayage explained: how to cut demurrage and detention costs

Demurrage and detention are the most avoidable costs in container logistics. The fixes are appointment automation, chassis planning and street turns.

The short answer

Demurrage is charged by the terminal when a container sits past its free days; detention is charged by the carrier when you keep their equipment too long. Both are reduced by monitoring vessel and terminal availability, pre-booking appointments the moment a container is released, planning chassis in advance, and using street turns to return empties without an extra trip.

Drayage is the short road move between a port or rail terminal and a nearby facility. It is a small part of the total journey and a disproportionate part of the total cost, because it is where clock-based penalties accumulate.

Demurrage versus detention

Demurrage is charged by the terminal for a container that stays on their property beyond the agreed free days. Detention is charged by the ocean carrier for their equipment — the container and sometimes the chassis — being kept outside the terminal too long. They are different clocks and different invoices, and it is common to be paying both simultaneously without realising.

Fix one: know when the container is actually available

Free days start ticking on discharge, not on when you found out. Automated vessel and terminal feeds tell you the moment a container is released and holds are cleared, which often recovers a full day or two of free time.

Fix two: automate the appointment

Terminal appointment slots at busy gateways are scarce and released unpredictably. Manual booking means checking the portal periodically and taking whatever is left. Automated booking claims a slot within seconds of availability.

Fix three: plan the chassis

A driver with no chassis is an appointment wasted. Pooling arrangements and pre-assignment stop the most common cause of a missed slot.

Fix four: use street turns

A street turn matches your outbound empty directly with another shipper’s inbound import instead of returning it to the terminal. It removes a whole road leg, stops the detention clock sooner, and cuts emissions and port congestion at the same time.

Key facts at a glance

Demurrage
Terminal charge for a container staying past free days
Detention
Carrier charge for holding their equipment too long
Typical free days
3–5 days depending on the terminal and contract
Biggest single fix
Automated terminal appointment booking
Street turn benefit
Removes an entire road leg from the move

Leave a comment

Your email address will not be published. Required fields are marked *

Keep reading

Related articles