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DEMURRAGE & DETENTION IN EUROPE: WHAT THEY ARE AND HOW TO AVOID COSTLY CHARGES

  • account2638
  • 3 days ago
  • 3 min read

At Hugix, we frequently see European importers caught off guard by demurrage and detention (dem/det) charges - costs that can quickly erode margins even when ocean freight rates are at their lowest. In recent years, dem/det has become one of the most significant financial risks when shipping cargo into Europe, often arising unexpectedly due to port congestion, customs delays, or misaligned documentation. Understanding how demurrage and detention work in the European market - and, more importantly, how to avoid them - is essential for exporters, importers, and freight forwarders who want to protect both timelines and profitability.



  1. What Are Demurrage and Detention?

Although often mentioned together, demurrage and detention are two different charges.

Demurrage

Demurrage is charged when a container stays inside the terminal longer than the free time allowed after vessel arrival.

  • Location: Port / terminal

  • Trigger: Container not picked up in time

  • Charged by: Terminal or shipping line

Detention

Detention is charged when a container is picked up but returned late to the depot after free time expires.

  • Location: Outside the port

  • Trigger: Late return of empty container

  • Charged by: Shipping line


👉 In Europe, demurrage and detention are usually counted separately, not combined.


  1. Why Dem/Det Is a Big Issue in Europe?

Many shippers assume dem/det rules are similar worldwide - but Europe has several unique characteristics.

Short Free Time

  • Typical free time in EU ports: 3 - 5 days

  • Northern Europe ports (Rotterdam, Antwerp, Hamburg): often 3 days

Strict Terminal Rules

  • Ports operate on slot-based truck appointments

  • Missed slots can delay pick-up by days

Complex Customs & Compliance

  • ENS / ICS2 screening

  • EORI & VAT validation

  • Random document or customs checks

Congested Infrastructure

  • Limited truck drivers

  • Rail and barge congestion

  • Strikes and weather disruptions

All these factors can quickly consume free time, even when paperwork seems “ready”.


  1. Common Causes of Dem/Det in Europe

1️. Late or Incorrect Documentation

  • MBL / HBL mismatch

  • Wrong consignee name or EORI

  • Missing VAT number

  • Late Arrival Notice

2️. Customs or ENS Holds

  • ENS amendment required

  • ICS2 risk screening

  • Customs inspection or X-ray

3️. Poor Coordination Between Parties

  • Forwarder not informing consignee of ETA changes

  • Consignee not ready with customs broker

  • Trucking booked too late

4️. Port & Carrier Issues

  • Terminal congestion

  • Equipment imbalance

  • Late D/O release from shipping line or agent


  1. How Dem/Det Is Calculated in Europe (Simple Example)


  • Free time at destination: 3 days

  • Demurrage rate: EUR 100/day

  • Detention rate: EUR 120/day

If:

  • Container stays 6 days at port → 3 days demurrage = EUR 300

  • Empty container returned 4 days late → 4 days detention = EUR 480

👉 Total extra cost: EUR 780 for one container

Multiply this by several containers, and the impact becomes serious.


  1. How to Avoid Demurrage & Detention in Europe

1️. Prepare Documents Before Vessel Arrival

  • Request MBL & HBL drafts early

  • Confirm:

    • Consignee legal name

    • EORI number

    • VAT number

  • Ensure ENS data is correct

2️. Monitor ETA and Port Updates Closely

  • Track vessel schedule daily

  • Watch for blank sailings or rollovers

  • Inform trucking partners immediately of changes

3️. Book Trucking Early

  • Pre-book trucking before vessel arrival

  • Secure terminal appointment slots

  • Avoid peak-hour congestion

4️. Confirm Free Time in Writing

  • Free time varies by carrier and port

  • Always request written confirmation

  • Clarify:

    • Start date of free time

    • Public holidays

    • Weekend counting

5️. Work Closely With the Destination Agent

  • Ask when D/O will be released

  • Confirm MBL is telex released

  • Pay local charges promptly

6️. Consider Extended Free Time (If Possible)

  • Negotiate extended free time at booking stage

  • Especially important for:

    • New importers

    • Seasonal cargo

    • Ports known for congestion


  1. Who Is Responsible for Dem/Det?

This is often misunderstood.

  • Carrier charges dem/det to the party who picks up the container

  • Commercial responsibility depends on:

    • Incoterms

    • Sales contract

    • Agreement between shipper and consignee

👉 Clear commercial agreements help avoid disputes later.



In the European market, demurrage and detention are not the exception, they are a common and often underestimated risk. Most dem/det charges are not caused by port congestion alone, but by poor planning, late documentation, and a lack of coordination across the supply chain. The good news is that with the right preparation, clear communication, and early action, most demurrage and detention costs are entirely avoidable. At Hugix, we believe that understanding the system and working proactively with experienced logistics partners is the key to keeping your shipments moving smoothly, on time, on budget, and free from unnecessary charges.

 
 
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