Detention, Demurrage, and Storage Fees Explained

Delay, Detention, or Storage: When Do the Charges Actually Begin?

You planned everything carefully – chose the right supplier, arranged the shipment, and made sure the container was on its way.

But then something went wrong.

The cargo arrived, yet it wasn’t collected on time, wasn’t released from customs, or wasn’t returned to the shipping company when it should have been.

That’s exactly when small, seemingly minor charges begin to pile up – and can quickly turn into significant unexpected costs.

Detention Fees (Detention)

Detention fees are charged when a container remains in the importer’s possession beyond the allowed free period, after the cargo has already left the port or terminal.

To put it simply:

The shipping company “loans” you its container or transport equipment for a limited time.
If you don’t return it within that period, you’ll be charged a daily fine for each unit, until it’s returned.

The exact rate depends on the terms of your shipping contract, the type of equipment, the country, and the carrier’s policy – but in many cases, it can reach hundreds of shekels per day.

Detention fees can also apply in air or land transport, for example, when specialized transport equipment (like pallets, racks, or metal cages) isn’t returned on time.

The principle is always the same:

Using transport equipment beyond the agreed period costs money.

The Difference Between Detention and Demurrage

Many importers confuse these two types of charges, which sound similar but actually refer to completely different locations. The distinction between them is critical, especially when hundreds of dollars are at stake for every day of delay.

Demurrage Fees are charged when the container is still inside the port or terminal after the free storage period (grace period) has expired. That is, the cargo has arrived but was not cleared or picked up on time.

Detention Fees begin to accrue after the container has left the port area but was not returned to the carrier or shipping line by the designated deadline.

Both types of costs stem from using the container beyond the time initially allotted. However, it is essential to understand that one refers to the time the cargo dwells within the port boundaries, and the other refers to the period after it leaves the port. In both scenarios, these are accumulating daily charges, calculated based on the number of days and the type of container or shipment.

A lack of awareness regarding these differences can lead to planning errors and unnecessary financial penalties.

What About Storage Fees?

In contrast to Detention or Demurrage fees, which originate from the carrier or shipping line, Storage Fees are charged by the port, terminal, or logistics warehouse-for the physical space the cargo occupies.

In other words:

This is a payment for the mere use of the operational space-not for the equipment or means used for transportation.

Storage Fees apply when cargo is not collected from the terminal on time or remains beyond the free storage period. This period can range from just a few days (often 4 days) up to 30 days, depending on the shipping mode and Customs clearance terms (for example, Less than Container Load (LCL) shipments usually have more free storage days than a full container load).

The implication is that if cargo is stuck in a freight forwarder’s warehouse, or at an air cargo terminal-even if it involves air or land freight-you will be required to pay for every additional day.

Comparing Storage, Demurrage, and Detention Fees

To fully understand these different types of charges, it helps to see the big picture.
The table below summarizes the main differences between storage fees, demurrage fees, and detention fees – including who charges them, where and when they apply, typical costs, and tips for avoiding them:

This clear comparison helps importers and exporters plan logistics efficiently and avoid unnecessary daily fees that can quickly add up.

When Do These Fees Start to Apply?

Each type of charge – storage, demurrage, and detention – comes into effect at a different point in the shipping process.
Understanding exactly when each fee begins is essential for planning ahead and avoiding unexpected costs.

For Imports

• Demurrage Fees start from the moment the container is unloaded from the vessel at the port, once the free days (grace period) have expired.
  If the cargo isn’t cleared or collected on time, demurrage begins to accrue.
• Detention Fees begin after the container leaves the port, if it is not returned on schedule.
  For example, if the container stays in your warehouse and isn’t returned to the carrier on time, a daily penalty will apply.
• Storage Fees are charged for the physical presence of cargo in the port or warehouse, regardless of the container.
  Sometimes storage fees may even start before clearance if there are delays in customs processing.

For Exports

• Storage Fees apply when cargo or containers remain in a warehouse or terminal before being loaded onto the vessel, beyond the allowed free period.
• Demurrage Fees apply if the container enters the port but gets stuck there before loading, for example due to incorrect documentation or vessel delays.
• Detention Fees are less common for exports but may occur if a container leaves the terminal but isn’t loaded on time, or isn’t returned to the carrier as agreed.

How to Avoid Unnecessary Costs

Whether dealing with Storage, Demurrage, or Detention fees, these payments can be prevented in most cases through proper planning, continuous monitoring, and effective collaboration among all involved parties.

Here are several effective strategies:

• Plan the Entire Logistics Chain in Advance – It is crucial to know the container’s estimated time of arrival (ETA), the duration required for Customs clearance, and the potential for delays (e.g., during holidays or periods of port congestion).

• Ensure Full Coordination with the Broker, Supplier, and Carrier – Real-time updates regarding arrival times, clearance status, or documentation issues can prevent unnecessary penalty days.

• Understand Exactly What the Quote Includes – Are there Free Days (grace period)? How long do they last? Who is responsible in the event of a delay? Ensure these conditions are crystal clear when finalizing the deal with the supplier and the freight forwarder.

• Track the Container Status Yourself – You do not have to rely solely on the Customs Broker. You can often check the status and location of your container directly on the websites of ports in Israel, such as Ashdod Port.

Wharfage and Mingesh Fees: Their Impact on Port Stay Costs

When discussing the cost of keeping cargo or containers at a port, the picture doesn’t end with storage, demurrage, or detention fees.

There are two additional charges – less well-known but significant – that affect the total cost of maritime shipping: wharfage fees and mingesh fees.

What Are Wharfage Fees?

Wharfage fees are paid by the ship to the port simply for anchoring in the port’s waters.

In other words, even if the vessel hasn’t yet unloaded its cargo, its presence in Israel’s territorial waters incurs a charge.

These fees are ultimately included in the shipping costs the importer pays, even if they don’t appear as a separate line item on the invoice.

The longer a vessel stays at anchor – due to congestion, unloading delays, or waiting for an available berth – the higher the charge.

What Are Mingesh Fees?

Mingesh fees are an additional charge for using the berth itself – the physical area where cargo is loaded or unloaded.

They cover the cost of equipment, labor, and infrastructure required to handle cargo at the port.

While typically billed to the carrier or freight forwarder, these costs are often passed on to the importer as part of the total shipping price.

Why It Matters

Wharfage and mingesh fees aren’t penalties or automatic fines like detention charges.

However, they are an integral part of the total maritime shipping cost and directly influence the final price you pay.

In Summary

For anyone involved in importing – especially beginners – understanding port-related terms and fees isn’t optional; it’s essential.

Storage, demurrage, and detention fees are three distinct charges, each triggered at a different stage of the logistics process.

A small error in timing, a missing document, or poor communication with the right parties can quickly result in accumulating daily costs, directly impacting your profit margin.

Beyond these, there are background charges like wharfage and mingesh fees – often invisible but embedded in shipping costs.

Understanding them is part of seeing the full financial picture.

With proper planning, continuous monitoring, and transparency with suppliers and freight forwarders, most of these costs can be avoided.

Accurate knowledge = better control = fewer surprises.