Detention and demurrage fees are two terms that can stir up confusion and frustration in the world of freight transportation. These charges impact all parties involved in the shipping process—carriers, shippers, customers, and transportation management providers alike. And with increasing global port congestion, recent tariff changes, and shifting trade lanes, delays in the container shipping process are becoming more common—making it even more critical to understand these charges.
At S-2, we understand how detention and demurrage fees can be perceived, especially by shippers who are working hard to manage tight timelines and customer expectations. This blog aims to shed light on what these fees really mean, why they exist, and how our team at S-2 handles them fairly and with care for all parties involved.
Detention fees are accessorial charges that occur when a carrier is delayed at a shipper’s or consignee’s location beyond the free time allotted—usually two hours. These delays prevent the carrier from returning to the road, picking up another shipment, or keeping to a tight delivery schedule. Container detention charges compensate the carrier for the lost time and productivity. Let’s explore how detention affects each group involved.
For carriers and owner-operators, time is quite literally money. When a truck is stalled at a shipper or consignee location, it limits how many deliveries a driver can make in a day—particularly for those operating under hours-of-service regulations.
Imagine a solo driver sitting for five hours waiting for freight to be ready. If they're subject to driving regulations, that wait time might push them into a required 10-hour rest period, preventing them from taking on their next pickup. Even unregulated drivers, like some sprinters or cargo vans, lose valuable hours they could’ve spent on the road. The ripple effect is real—when one driver gets delayed, the entire supply chain loses flexibility, and capacity tightens.
That’s why detention fees exist: to compensate for the real financial losses carriers face when their time is not respected. At S-2, we have deep empathy for drivers and work hard to ensure that the detention fees assessed reflect the disruption to their schedule and livelihood.
From the shipper’s perspective, container detention can be equally frustrating. Sometimes delays happen because of simple paperwork issues—like a customs broker not finishing in time—or production setbacks that keep freight from being ready for pickup.
Worse than detention is a full layover. If a driver is scheduled for a pickup and the freight isn't ready, they may need to wait overnight. That costs both time and money—and sometimes the shipper loses that truck entirely because the carrier has to move on to another load. Now the shipper needs to find a new carrier, often at a higher rate, creating more stress and higher costs.
We understand that shippers often feel burned by accessorial charges, especially detention and layover fees. But these charges exist for a reason: they compensate carriers for time lost and help the transportation process stay fluid and functional. When everyone in the supply chain respects each other's time, the process flows much more smoothly.
Transportation management companies like S-2 are the critical link between shippers and carriers. We manage communication, coordinate load scheduling, and help facilitate fair resolutions when container detention occurs.
Unfortunately, large brokers have made it harder for shippers to trust these processes. Some big box 3PLs mark up detention fees substantially without offering additional value to the shipper or fairly compensating the carrier. They may even charge for full detention windows while giving the carrier another load in the meantime.
At S-2, we take a different approach. Our margin percentages have remained steady and reasonable for more than 20 years because we don’t view detention, or other accessorials, as a profit center. We talk directly with drivers to understand how delays impact them and determine what a fair fee is and we pass that along to our customer. We’re committed to transparency, fairness, and acting as a true advocate for both our customers and our carrier partners.
While some detention is unavoidable—especially in times of high port congestion or shifting trade lanes—there are practical strategies shippers can use to prevent delays and reduce detention charges. Here are some actionable tips:
Avoid vague instructions like “the freight will be ready anytime after noon.” If the shipment likely won’t be ready until 3 p.m., don’t schedule a 12 p.m. pickup. This helps carriers plan better and avoid idle time.
This is a common scenario: a carrier is instructed to deliver at 2 a.m., but no one at the destination is present to receive the shipment. That driver may end up waiting 6+ hours—leading to hefty detention charges and potentially missing their next pickup.
Don’t send trucks to pick up cargo that isn’t produced, packaged, or released yet. Waiting on-site not only frustrates the carrier, but it’s an unnecessary cost to your company.
At S-2, we proactively ask the right questions before assigning a load. We make sure pickup times align with when freight is actually ready. Communication upfront helps avoid surprises later. Remember, when a truck sits idle, everyone loses—shippers face delays and rebooking costs, and carriers lose productivity. Being proactive helps everyone in the supply chain succeed.
While container detention refers to the time a shipment spends outside a port facility or terminal, demurrage fees apply to containers that remain inside a port or terminal longer than allowed.
Ports grant a limited number of free days for containers to be picked up after unloading from a vessel. If a container is not moved in time, demurrage fees are charged—often daily and at increasing rates.
These charges are not designed to penalize shippers arbitrarily; rather, they are meant to keep port operations moving efficiently. When containers sit too long, they clog up the system and impact carriers trying to move goods through that terminal.
At S-2, we’re proud to offer dependable container drayage services—short-distance movement of containers from ports to nearby warehouses or distribution centers. Our experienced team ensures containers are picked up and returned quickly, helping shippers avoid costly demurrage fees and keep their freight moving.
Navigating detention and demurrage fees can be complex. That’s where the value of a trusted transportation management provider really shines.
A reliable 3PL like S-2 will:
Among the myriad of transactional shipping providers, S-2 stands apart by building strong, respectful relationships with both shippers and carriers. We ensure that everyone is treated fairly and that the supply chain keeps moving—without unnecessary costs or delays.
Whether you’re a shipper looking to avoid excessive detention and demurrage fees or a carrier trying to keep your schedule on track, we’ve got your back. Our team understands the nuances of port pickups, warehouse coordination, and container return windows—and we act quickly and efficiently to avoid delays.
We don’t believe in using accessorial charges as a money-maker. Instead, we focus on delivering the best possible service and ensuring everyone involved gets what they need. If you’re looking for a transportation management provider who understands the real cost of delays—and who treats your time, budget, and freight with respect—look no further than S-2.
Let’s navigate detention and demurrage fees together—fairly, transparently, and with heart. Contact us today to learn more about our container drayage services, or speak with our team about how we can support your other shipping operations with care and confidence.