Importers usually budget the car, the freight and the duty. The cost that blows up the margin is the one nobody quotes at the beginning: the daily charge that starts ticking when a vehicle sits at the destination terminal because a document was late, a valuation query was raised, or the clearing agent was appointed after the vessel arrived.
This guide explains how demurrage, detention and port storage work for vehicle imports from China, who pays under FOB and CIF, which failures actually trigger the clock, and how to structure a shipment so the clock never starts.
Buyers often use "demurrage" for every port charge. Carriers and terminals treat them separately, and each has its own free period and tariff.
Demurrage is charged when cargo — a container, or a vehicle unit at a RoRo terminal — stays inside the terminal beyond the free period allowed after discharge. The equipment or the unit is occupying terminal space, and the terminal or carrier charges for that occupation.
Detention is charged when equipment leaves the terminal but is not returned within the agreed period. For vehicle imports this matters mainly in container shipping: you take the container to your yard for devanning, and every day beyond the free period is billable until the empty is returned.
Port storage / terminal storage is the terminal's own charge for holding a unit on the quay. It is separate from the carrier's demurrage, and on RoRo trades it is often the charge that surprises buyers, because RoRo terminals usually offer a shorter free window than container terminals and bill per vehicle per day.
A single delayed shipment can therefore generate three invoices from three parties: the shipping line, the terminal and the port authority. None of them is covered by marine cargo insurance, which responds to physical loss or damage, not to delay costs.
| Charge | Applies when | Billed by | Typical trigger |
|---|---|---|---|
| Demurrage | Cargo or equipment stays inside the terminal past free time | Shipping line / terminal | Documents late, customs query, unpaid duty |
| Detention | Container is outside the terminal past free time | Shipping line | Slow devanning, late empty return |
| Port / terminal storage | Unit held on the quay past the terminal's free days | Terminal / port authority | Delay between discharge and gate-out |
Free days are not a fixed legal entitlement. They are set by the carrier's tariff, the terminal's rules and the contract of carriage. Depending on the trade, the carrier and the booking terms, free time at destination commonly ranges from a handful of days to two weeks for containers; RoRo terminals are frequently stricter.
The practical point is this: free time is published in the tariff and can often be extended at the time of booking, especially for volume shippers and regular accounts. Ask for the destination free days, the daily rate after the free period, and the terminal storage rate as three separate written figures before you confirm the booking. An exporter who cannot provide them has not looked at the destination side of the shipment.
Also confirm who is the "merchant" on the bill of lading. Charges follow the cargo interest named there, and a consignee who thinks the shipper is paying is a consignee who discovers otherwise at the counter.
Under FOB and CIF, the buyer bears the costs at destination. Freight prepaid under CIF does not include demurrage, storage, port dues or clearance. So on the majority of vehicle imports from China, every day of delay after discharge is the importer's cost, not the exporter's.
Only under delivered terms (DAP, DDP) does the seller carry destination risk and cost, and even then the contract should state explicitly who pays demurrage if clearance is delayed by the buyer's own document or payment failure.
This is the clause to check before you pay a deposit: what happens, and who pays, if the vessel arrives before the documents do.
In practice, demurrage and storage are almost never caused by the ship. They are caused by one of a short list of preventable failures.
The sequence below is what a well-run import looks like from the buyer's side.
That last step matters. Terminal and carrier invoices are frequently wrong — charged from the wrong start date, at the wrong rate, or for days already covered by free time. A documented arrival date, discharge date and gate-out date is usually enough to get an overcharge corrected.
Container shipping gives you more control. You can devan a container in your own yard, and the detention clock is measurable: it starts when the container leaves the terminal and stops when the empty is returned. Load two or three vehicles per container and the per-unit storage exposure falls accordingly. Our container loading guide shows how the counts work in practice.
RoRo is cheaper per unit on many routes but less forgiving. The vehicle sits in a terminal vehicle yard, storage is charged per unit per day, and you cannot shorten the exposure by working faster on your own site — only by clearing faster. RoRo terminals also restrict access, so inspection or accessory fitting before clearance is usually not possible.
For a side-by-side comparison of the two modes, see our RoRo versus container guide.
Three sentences protect most of the exposure:
The third clause is the one that changes behaviour. It is also the one most often left out. Our contract clause guide covers the other clauses that decide whether an order runs to plan.
Demurrage is not an unlucky accident. It is the price of a process gap, and it is predictable. Importers who control it do three things: they get the tariffs in writing before booking, they run documents and pre-funding ahead of the vessel instead of behind it, and they keep a documented timeline so overcharges can be recovered.
If you are planning a shipment and want the destination cost picture before you commit — free days, storage exposure and the document sequence for your port — talk to us before the booking is made, not after the vessel sails.
Email: shengyue4499@gmail.com | WhatsApp: +86 19121331679 | Web: www.shengyueauto.com
Demurrage is charged when cargo or a container stays inside the terminal beyond the free period after discharge. Detention is charged when equipment has left the terminal but is not returned within the agreed period. Port storage is the terminal's own charge for holding the unit, separate from both.
The buyer. CIF covers cost, insurance and freight to the destination port, but not destination charges. Demurrage, storage, port dues and clearance are for the consignee unless the contract says otherwise, for example under DAP or DDP terms.
It depends on the carrier's tariff and the terminal's rules, and it is often shorter at RoRo terminals than at container terminals. Free time can frequently be extended at booking, so ask for the destination free days and the daily rate in writing before you confirm the shipment.
Sometimes, but only with evidence. If the delay comes from a schedule change, a port omission or a terminal error, a written claim with the arrival notice, discharge date and gate-out date can succeed. Delays caused by missing documents, unpaid duty or a late-appointed agent are the buyer's cost.
No. Marine cargo insurance covers physical loss or damage to the cargo, not delay costs. Demurrage, detention and storage are financial costs of delay and need to be managed through documents, pre-funding and contract clauses rather than insured away.