Definition
Every container booking comes with free time — a set number of days in which the box can be used without charge. After that, the carrier bills demurrage for a full container still inside the terminal and detention for a container held outside it, typically from gate-out until the empty is returned. Some carriers combine the two into one "D&D" clock, and storage may be charged separately by the terminal.[1]
The United States has written the clearest rules. Under the FMC's interpretive rule the test is whether a charge actually serves as an incentive to move cargo — so charges for days when cargo was not available, or when empties could not be returned, are open to challenge. Since the Ocean Shipping Reform Act of 2022, D&D invoices must show the free time allowed, its start and end dates and the charged days and rate, must be issued within 30 days of the last charge, and give the billed party at least 30 days to dispute.[2,3,4]
Outside the US, the terms are whatever the carrier's tariff and your contract say. Negotiate free time with the freight rate, track it from the availability date, and keep the evidence (gate times, terminal closures, inspection holds) — it is what wins a dispute.
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Sources
- [1] Maersk — Demurrage & detention terms — https://terms.maersklinelimited.com/dnd
- [2] 46 CFR § 545.5 — Interpretive rule on demurrage and detention (Cornell LII) — https://www.law.cornell.edu/cfr/text/46/545.5
- [3] 46 CFR § 541.6 — Demurrage and detention invoice contents (Cornell LII) — https://www.law.cornell.edu/cfr/text/46/541.6
- [4] US FMC — Ocean Shipping Reform Act of 2022 implementation — https://www.fmc.gov/ocean-shipping-reform-act-of-2022-implementation/
A working definition for buyers, not legal advice — the contract, the convention text and your club or class have the last word.