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Charges

Detention

Fees charged when a container is kept outside the terminal beyond the allowed free time.

What is Detention?

Detention is the charge for keeping a carrier's container outside the terminal or depot beyond the allowed free time: on imports from gate-out of the full container until the empty is returned, and on exports from pickup of the empty until the loaded container is delivered back to the terminal. In US trades it is often called per diem, and the FMC treats demurrage and detention together in 46 CFR 541.3 as charges for the use of terminal space or shipping containers, excluding freight. Free days and daily rates are set in carrier tariffs or service contracts, commonly in escalating tiers and varying by equipment type. Truckers face a parallel regime for equipment use under the Uniform Intermodal Interchange and Facilities Access Agreement (UIIA) in North America, administered by the Intermodal Association of North America. The FMC's interpretive rule states that detention charged when empty containers cannot be returned is likely to be found unreasonable (46 CFR 545.5).

Why it matters for forwarders

Detention is driven by inland operations: slow unloading at the consignee, warehouse appointment delays, trucking capacity and depot restrictions on empty returns. Give consignees the exact free time and last return date before the container leaves the terminal, and record every day a depot refused empties or appointments were unavailable, because that evidence supports disputes. In US trades, detention invoices follow the same FMC rule as demurrage: issued within 30 calendar days of when charges were last incurred, with the required content, and open to dispute for at least 30 days. Where the carrier arranged inland delivery (carrier haulage), check whether the delay was caused by the carrier's own trucking before accepting charges. Combined demurrage and detention free time in service contracts gives flexibility when delays shift between port and inland.

Detention FAQ

Who pays detention charges?

The carrier bills the party named under its tariff or contract, usually the shipper on exports and the consignee or its forwarder on imports. Under merchant haulage, the trucker's delays may be passed back through the drayage contract.

When does detention start?

Free time for detention generally starts when the container leaves the terminal or depot and stops when it is returned, empty on imports or loaded on exports. The exact start and end events and number of free days are set in the carrier's tariff or service contract.

How can shippers avoid detention charges?

Plan unloading and empty return before the container leaves the terminal, give the consignee the last free return date, and negotiate enough free time or combined demurrage and detention free days in the service contract. Book empty return appointments early.

What can I do if the depot will not accept the empty container?

Record each refused return or missing appointment with dates and references. The FMC states that detention charged when empties cannot be returned is likely unreasonable (46 CFR 545.5), and in the US you have at least 30 days from the invoice to request a waiver.

Sources

  1. 46 CFR 545.5: Interpretive rule on demurrage and detention, Legal Information Institute, Cornell Law School
  2. 46 CFR 541.3: Definitions, Legal Information Institute, Cornell Law School
  3. Uniform Intermodal Interchange and Facilities Access Agreement (UIIA), Intermodal Association of North America

Rules and figures change. Check the current text with the issuing body before relying on it.

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