How to Avoid Demurrage & Detention Charges at US Ports
If you manage freight operations into the United States, you already know the feeling: a container arrives at port, and then the clock starts ticking. Every day your cargo sits at the terminal or an empty container sits on a chassis at your warehouse, money drains from your bottom line. Demurrage and detention charges are among the most frustrating, unpredictable, and preventable costs in international logistics.
For Brazilian freight forwarders, these charges hit especially hard. You are operating from thousands of miles away, dealing with time zone differences, language barriers, and a US port system that punishes delays without mercy. A single container held at LA/Long Beach or NY/NJ for five extra days can easily rack up $1,500 to $3,000 in combined charges. Multiply that across dozens of shipments per month, and you are looking at a serious threat to your margins and your client relationships.
The good news: most demurrage and detention charges are avoidable. This guide breaks down exactly what causes them and what you can do to prevent them.
Demurrage vs. Detention: Understanding the Difference
Before we dive into prevention strategies, let's clarify what these two charges actually mean. They are often confused, but they apply to different stages of the container lifecycle.
Demurrage is the charge assessed by the shipping line or terminal when a loaded import container remains at the port terminal beyond the allotted free time. Think of it as a storage fee for occupying terminal space. Free time typically ranges from 3 to 5 days at most US ports, after which daily charges begin. At major ports like LA/Long Beach, demurrage rates can reach $200 to $400 per container per day, escalating the longer the container sits.
Detention is the charge assessed when you keep the shipping line's empty container or chassis beyond the allowed time after it has been picked up from the terminal. Once you have taken the container to your warehouse for unloading, the detention clock starts. You typically get 4 to 7 free days to unload and return the empty container. After that, daily fees apply until the equipment is returned.
In short: demurrage happens at the port, detention happens outside the port. Both are expensive, and both are largely within your control if you plan properly.
Top 5 Causes of Demurrage & Detention at US Ports
1. Slow Customs Clearance
This is the number one cause of demurrage for Brazilian cargo entering the US. When customs entries are filed late, contain classification errors, or trigger holds from agencies like FDA, USDA, or CBP, your container cannot be released from the terminal. Every day spent waiting for customs clearance eats into your free time. If an ISF (Importer Security Filing) was not submitted at least 24 hours before vessel loading, you may face additional delays and penalties upon arrival.
2. Chassis Shortages
The US chassis system is unique in the world: truckers often need to source a chassis from a pool before they can pick up a container. At congested ports, chassis availability can be extremely limited. If your trucker cannot secure a chassis on the scheduled day, the pickup gets delayed, and the demurrage meter keeps running. This issue is particularly severe at LA/Long Beach and Savannah during peak season.
3. Warehouse Scheduling Conflicts
Even after customs clears your container, you still need a warehouse appointment to receive it. Many warehouses in the US operate on tight appointment windows, and if your receiving dock is not available when the trucker arrives, the container goes back to the terminal or a nearby yard, racking up additional charges. Poor coordination between drayage timing and warehouse availability is one of the most common yet overlooked causes of both demurrage and detention.
4. Documentation Errors
Mismatches between the bill of lading, commercial invoice, and packing list can trigger customs examinations and release delays. Incorrect HS codes, wrong consignee information, or missing certificates of origin for duty-preference programs are common problems with Brazil-US shipments. These documentation errors create cascading delays: customs holds the container, the terminal keeps charging demurrage, and the trucker cannot pick it up until every document discrepancy is resolved.
5. Holiday and Peak-Season Congestion
US port congestion spikes during predictable periods: pre-Chinese New Year surges, back-to-school season (July through September), and the holiday import rush (October through December). During these times, terminal gate hours may be reduced, chassis pools run dry, and trucker availability drops. If your container arrives at port during one of these windows and you have not planned ahead, demurrage charges are almost inevitable. Federal holidays like Thanksgiving, Christmas, and Independence Day further reduce operational days, shrinking your effective free time.
Practical Strategies to Prevent Demurrage & Detention
File ISF Early and Accurately
The Importer Security Filing must be submitted at least 24 hours before the vessel is loaded at the origin port. However, best practice is to file it 48 to 72 hours before loading. This gives you a buffer to correct any errors before CBP flags the shipment. Late or inaccurate ISF filings are one of the fastest ways to trigger a hold at the US port, which directly causes demurrage.
Pre-Clear Customs Before Vessel Arrival
Do not wait for the vessel to arrive before filing customs entries. Work with your US customs broker to submit entries 5 to 7 days before the estimated arrival date. When the entry is already cleared by the time the container is discharged, you can pick it up on day one of free time instead of burning days waiting for release. For FDA-regulated goods like Brazilian food products, submit the prior notice at least 15 days before arrival to allow time for any review or examination.
Partner with a Local Drayage Provider
Remote coordination of US drayage from Brazil is one of the biggest risk factors for demurrage. A local drayage partner can monitor terminal appointment availability in real time, secure chassis in advance, and dispatch trucks the moment your container becomes available. They know the terminal schedules, the chassis pool quirks, and the fastest routes to your warehouse. This on-the-ground intelligence is the single biggest advantage you can have in avoiding port charges.
Negotiate Extended Free Time
Most forwarders accept the standard 3 to 5 day free time without questioning it. However, many shipping lines will grant 7 to 10 days of free time if you negotiate it upfront, especially for consistent volume accounts. This extra buffer can be the difference between zero charges and hundreds of dollars in demurrage. Make free time negotiation a standard part of your rate procurement process for every trade lane.
Align Warehouse Appointments with Container Availability
Coordinate your warehouse receiving schedule before the container arrives, not after. Confirm dock availability, labor requirements, and any special handling needs at least 3 days before the vessel's ETA. When the container is ready for pickup, your warehouse should already have a confirmed appointment window. This eliminates the common scenario where the trucker picks up the container but has nowhere to deliver it, resulting in per-diem charges while the loaded container sits on a chassis.
Track Free Time Windows Proactively
Do not rely on memory or spreadsheets to track when free time expires across dozens of active containers. Set up automated alerts for each container's last free day. Knowing exactly when charges will start gives you the urgency and timeline to prioritize pickups. Many demurrage charges happen simply because someone lost track of the calendar.
Return Empty Containers Promptly
Detention charges are easier to control than demurrage because they are entirely within your operational workflow. Establish a strict container return policy: unload within 24 to 48 hours of delivery, and schedule the empty return trip immediately. Make sure your trucking partner has a standing arrangement for empty returns and knows which depots accept returns for each shipping line. Different carriers designate different return locations, and showing up at the wrong depot wastes an entire day.
How a US Operations Partner Eliminates the Problem
Every strategy listed above requires one thing that most Brazilian forwarders simply do not have: a team on the ground in the US that can execute in real time. Filing entries early requires a customs broker who understands Brazilian commodity classifications. Securing chassis requires relationships with local pool operators. Getting warehouse appointments aligned requires someone who can make calls during US business hours, in English, with the authority to confirm bookings.
This is exactly why many forwarders are turning to white-label US operations partners. Instead of building your own infrastructure in the US, you plug into an existing one. Your partner handles drayage dispatch, customs coordination, chassis management, warehouse scheduling, and container return logistics while your brand stays front and center with the importer. The importer sees your company name on every document, every status update, every proof of delivery. They never know there is a US team working behind the scenes.
The result: your containers move faster, demurrage charges drop to near zero, and your importers trust you more because their cargo consistently arrives on time without surprise fees. That is the kind of operational reliability that wins long-term contracts.
Stop Bleeding Money at the Port
Demurrage and detention are not just line items on an invoice. They are symptoms of operational gaps in your US supply chain. Every dollar you spend on port storage is a dollar that could have gone to your bottom line or been invested back into your business. The forwarders who consistently avoid these charges are the ones who have invested in proactive planning, strong local partnerships, and real-time US-side execution capability.
Whether you implement these strategies with your current team or partner with a US operations provider, the key is to act before the charges start. Because once the demurrage clock is ticking, the only thing you can do is pay.