Demurrage and detention in UK imports — what they are and how to avoid the charges

Demurrage and detention — what they are and how they differ

Demurrage and detention are two separate types of charge relating to the time a sea freight container is held. Although they are often confused or treated as one in everyday speech, in practice they apply to two distinct stages of the container cycle and are billed separately. The key distinction comes down to where the container physically is when the free time is exceeded: inside the terminal or outside it. Understanding this difference is the starting point for managing and reducing these costs when importing to the United Kingdom.

Demurrage — container sitting at the port

Demurrage is the charge that accrues when a container remains in the terminal or port after being discharged from the vessel and the free time has expired, before the consignee collects and removes it. In other words: the container has already come off the ship, it is waiting on the quay, and you have not yet collected it. Every day beyond the free-time limit generates demurrage. The most common trigger for demurrage on UK imports is an incomplete or delayed customs declaration — until the goods are released by the authorities, the container cannot leave the port.

Detention — container outside the port, in your hands

Detention is the charge for keeping the container outside the terminal beyond the agreed free time — from the moment the container exits the port to the moment the empty container is returned to the shipping line's designated depot. Detention therefore covers the period when the container is in your hands: in transit to the warehouse, waiting for unloading, being unloaded, and making its way back empty. If this process exceeds the allotted free time, every additional day is charged as detention.

A simple way to remember the difference

In brief: demurrage = container sitting at the port/terminal (before you collect it); detention = container outside the port, in your hands (before you return it empty). The dividing line between the two charges is the terminal gate. Some shipping lines offer a combined "merged D&D" allowance (a single free-time pool for both charges), but the underlying logic is the same: what matters is where the container is and for how long. This article reflects the operational and regulatory position as at 2026-06-02. Please consult a customs broker before taking action.

Free time — who sets it

Free time is the number of days during which you may use a container without incurring demurrage or detention. It is the central concept for both charges, because it is only once free time is exhausted that accrual begins. Free time is not a statutory figure or a uniform market standard: it is set by the shipping line (carrier) or the terminal operator, and the length depends on the contract of carriage, the tariff conditions, the trade lane, the container type (standard, reefer, out-of-gauge), and the specific port.

Why free time varies from shipment to shipment

The same importer may have different free-time allowances with different carriers, or even under different contracts with the same carrier. Standard allowances can be short, and specialist containers (such as a reefer requiring power on the terminal) typically carry even fewer free days because they occupy limited port resources. Once free time expires, the rate often escalates progressively — the first days of delay are cheaper, and each subsequent day is more expensive. This is why it is impossible to quote a single universal demurrage or detention rate for the UK: every rate flows from the specific tariff of a specific carrier and terminal. Actual figures must always be checked against the conditions of carriage and the carrier's tariff attached to the shipment.

Who raises demurrage and detention charges — these are not HMRC fees

This is one of the most important points for any importer: demurrage and detention are commercial charges raised by the shipping line (carrier) and/or the port terminal operator. They are not HMRC charges, customs duty, or tax — they do not go to the government and they do not arise from customs legislation. They are contractual claims arising from the contract of sea carriage and the port's regulations and tariffs. HMRC is responsible for customs duty and import VAT; the carrier and terminal are responsible for demurrage and detention. These are two entirely separate categories of cost, even though in practice they are closely connected.

The link to clearance: why duty and container charges go hand in hand

The connection is indirect but strong. A container cannot be released from the port until the goods have passed through customs clearance and been officially released for free circulation. If clearance is delayed — because documents are missing, data is inconsistent, or funds for duty and VAT are not in place — the container physically remains in the terminal and demurrage accrues. A delay on the customs (HMRC) side therefore translates directly into a commercial demurrage cost raised by the carrier. That is why efficient clearance is the most cost-effective way to avoid these charges. Demurrage and detention rates are set exclusively by the carrier/terminal — there is no official gov.uk schedule for these charges.

The most common causes of demurrage and detention on UK imports

The majority of demurrage or detention cases can be traced back to a handful of recurring causes. Almost all of them can be eliminated with proper preparation and efficient clearance. The most common are:

• Late or incorrect customs declaration — a declaration lodged only after the goods have arrived, or a declaration containing errors that the authority rejects or queries.
• Incomplete documentation — missing commercial invoice, packing list, certificate of origin, transport document, or a licence required for the specific goods.
• Data inconsistencies — discrepancies between the invoice, the bill of lading/CMR, and the customs declaration (weight, quantity, description, value) that prevent release.
• Referral to examination — goods directed to a document check or physical examination (e.g. a border SPS check), which prolongs the container's stay at the terminal.
• Insufficient funds for duty and VAT — release requires the duty liability to be secured; a lack of liquidity or no mechanism in place to settle the liability blocks clearance.
• No collection transport arranged — even after customs release, the container waits because no haulier has been booked to collect from the port (demurrage) or to return the empty container (detention).

How to avoid demurrage and detention — practical steps

Avoiding these charges is primarily a matter of planning and speed. The aim is simple: to ensure that, by the time the vessel arrives, customs clearance is complete or close to completion and collection transport is already booked. The most effective measures are set out below.

Pre-lodgement — submit the declaration before the vessel arrives

The single most effective tool is to prepare and submit the import declaration in advance — before the vessel arrives (pre-lodgement). This means that at the time of discharge, the customs procedure is already under way or ready for release, and the container does not stand on the quay longer than necessary. The steps involved in submitting the declaration are set out on gov.uk in the guide to UK customs clearance when importing goods.

Complete and consistent documentation

Before the goods arrive, gather and check all the required documents: the commercial invoice, packing list, transport document, and any licences or certificates required for the specific goods. Make sure the data is consistent across documents and matches what will be declared. The majority of holds arise not from an absent document but from minor discrepancies that the authority needs to clarify.

Correct tariff classification (HS commodity code)

The correct HS/commodity code determines the duty rate, the licences required, and whether the goods are subject to any controls. Incorrect classification is one of the most common causes of amendments and holds, and every amendment means days of delay — and mounting demurrage. Establish the right code before clearance, and if in doubt, seek advice from a customs broker.

Liquidity for duty and VAT — Postponed VAT Accounting

Ensure you have a mechanism in place to settle the customs and tax liabilities at the time of clearance. For import VAT, Postponed VAT Accounting (PVA) helps — accounting for import VAT on the VAT return rather than paying cash at the time of clearance, which improves cash flow and does not delay release of the goods. The rules for PVA are set out on gov.uk.

Planning collection and empty container return

Arrange collection transport from the port and the location and date for returning the empty container well in advance. Even a flawless, rapid clearance will not help if there is no one to collect the container after release (demurrage), or if the empty container waits too long after unloading before being returned to the depot (detention). Synchronising clearance with collection logistics is the key.

Temporary storage or customs warehouse when you need more time

If you know you will not be able to clear or collect the goods in time, consider moving them to temporary storage or a customs warehouse. This takes the goods out of the carrier's container cycle and buys you time without demurrage continuing to accrue on the container. The differences between these options are explained in a separate article: temporary storage or customs warehouse. Temporary storage of imported goods is governed by gov.uk.

An efficient customs broker with port knowledge

A customs broker who submits declarations in advance, keeps documentation complete, and responds immediately to queries from the authorities meaningfully reduces the time a container spends in the port. Knowledge of the specific port also helps — Felixstowe and Southampton (container ports) work differently from roll-on/roll-off crossings such as Dover. If the goods are to move onward under a transit procedure, it is worth planning the T1 document from the outset.

What to do when demurrage is already accruing

If a container is already accruing demurrage or detention is looming, every day counts — because rates typically escalate progressively. Work through the following steps:

1. Identify the reason for the hold. The most common causes are an incomplete declaration, a missing document, referral to examination, or insufficient funds for duty and VAT. Pinpoint exactly what is blocking release.
2. Address the gaps and complete clearance. Provide missing documents, correct inconsistent data, settle the liabilities or activate PVA so the authority can release the goods.
3. Arrange collection. At the same time as dealing with clearance, have transport ready for immediate collection of the container once it is released, to avoid accumulating further days of delay.
4. Contact the carrier/terminal. Confirm the number of days accrued and the amount owed, and ask whether any negotiation or free-time extension is possible. The decision rests entirely with the carrier/terminal — it is their commercial charge.
5. Consider moving to storage. If collection is going to take longer, moving the goods to temporary storage or a customs warehouse may stop further demurrage accruing on the container.

An efficient customs broker can close the declaration and limit further charges simultaneously — the sooner the goods are released, the smaller the bill from the carrier. This article reflects the operational and regulatory position as at 2026-06-02. Please consult a customs broker before taking action.

What the current official rules mean in practice

Demurrage and detention are commercial charges raised by shipping lines and terminal operators — they are not HMRC fees and do not arise from customs or tax legislation, and there is no official gov.uk rate schedule for them. The rates and free-time allowances are set by the carrier or terminal under the contract of carriage and their tariffs, so they vary between carriers and ports. From a UK imports perspective, what matters most is that the course of customs clearance typically determines whether a container leaves the port on time: an import declaration (gov.uk: Get UK customs clearance when importing goods into the UK) submitted in advance, complete and consistent documentation, the correct HS code, and liquidity in place for duty and VAT (e.g. Postponed VAT Accounting) are all elements the importer can control. Where more time is needed, gov.uk-regulated temporary storage of imported goods allows goods to be removed from the carrier's container cycle. This article reflects the operational and regulatory position as at 2026-06-02. Please consult a customs broker before taking action.

FAQ — frequently asked questions

What is the difference between demurrage and detention?

Demurrage is the charge incurred when a container remains in the port terminal after the free time has expired — before the consignee collects it. Detention is the charge for keeping the container outside the terminal beyond the agreed free time — from the moment the container leaves the port until the empty container is returned to the shipping line's designated depot. In short: demurrage = container sitting at the port; detention = container in your hands outside the port.

Who raises demurrage and detention charges — are these HMRC fees?

No. Demurrage and detention are commercial charges raised by the shipping line (carrier) and/or the terminal operator — not by HMRC. They are not customs duties or government taxes. The rates, free-time allowance, and accrual rules are set by the contract of carriage and the carrier's and terminal's tariffs, and they vary between carriers and ports.

What is container free time?

Free time is the number of days during which you may hold a container without incurring demurrage or detention charges. The number of days is set by the shipping line or terminal and depends on the contract, trade lane, container type, and port. Once free time expires, charges begin — usually on a per-day basis and often on a progressive scale (the rate increases the longer the delay).

How do you avoid demurrage and detention when importing to the UK?

The most effective approach is pre-lodgement — submitting the import declaration before the vessel arrives, ensuring all documents are complete and consistent, applying the correct HS commodity code, having a mechanism in place for duty and import VAT (e.g. Postponed VAT Accounting), and pre-arranging collection transport and the empty container return point. If more time is needed, temporary storage or a customs warehouse can be used.

What should you do when demurrage is already accruing on a container?

First, identify the reason for the hold — most commonly an incomplete declaration, a missing document, referral to examination, or insufficient funds for duty and VAT. Immediately provide the missing information and documents, complete the declaration, and arrange collection transport. At the same time, contact the shipping line or terminal to confirm the accrued days and explore the possibility of negotiation. An efficient customs broker can close the declaration and limit further charges simultaneously.

Official sources

• Temporary storage — temporary storage of imported goods (gov.uk) — GOV.UK
• Get UK customs clearance when importing goods into the UK: step by step (gov.uk) — GOV.UK
• Check when you can account for import VAT on your VAT Return — Postponed VAT Accounting (gov.uk) — GOV.UK

Note: demurrage and detention charges themselves are not regulated by gov.uk or HMRC — their rates and rules are set by the shipping line (carrier) and the terminal operator under the contract of carriage and their tariffs. The official sources above cover clearance, import VAT accounting, and temporary storage — the areas where importers have real leverage to avoid demurrage and detention.