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Understanding Demurrage vs Detention vs Storage in UAE Ports: Complete Guide (2025)

Introduction

One of the most common sources of confusion for importers in Dubai is the difference between demurrage, detention, and storage charges. These three terms are often used interchangeably, but they represent completely different charges from different parties. More importantly, failing to understand these differences can result in unexpected costs that sometimes exceed the value of your cargo itself. In this comprehensive guide, we'll break down exactly what each charge means, who charges them, how they're calculated, and most importantly—how to avoid them.

The Core Difference: What Each Charge Means

Before diving into rates and calculations, let's establish the fundamental difference between these three charges:

**DEMURRAGE = Container sitting at port terminal (port charges you)**

• Charged by: Port terminal (DP World, Gulftainer, etc.)

• Location: Container is AT the port

• Starts when: Free time expires after container discharge

• Stops when: Container leaves port premises

**DETENTION = Container outside port but not returned to shipping line (carrier charges you)**

• Charged by: Shipping line (MSC, Maersk, CMA CGM, etc.)

• Location: Container is OUTSIDE the port (at warehouse, factory, etc.)

• Starts when: Free time expires after container leaves port

• Stops when: Empty container returned to carrier's depot

**STORAGE = Cargo sitting in warehouse/CFS without container (warehouse charges you)**

• Charged by: Warehouse operator, CFS (Container Freight Station), or port storage facility

• Location: Cargo (not container) is in warehouse

• Starts when: Free time expires after customs clearance

• Stops when: Cargo collected from warehouse

**Visual Analogy:**

Think of it like renting a car:

• **Demurrage** = Late fee for not picking up the rental car from the airport parking lot

• **Detention** = Daily rental fee for keeping the car beyond the agreed return date

• **Storage** = Parking fee at a separate facility after you've returned the car but left your luggage in their office

Demurrage Explained (Port Terminal Charge)

**Definition:**

Demurrage is a charge imposed by the port terminal for containers occupying port space beyond the allowed free time after discharge from the vessel.

**Who Charges It:**

• Port terminal operator: DP World Jebel Ali (most common), Gulftainer (Sharjah), Khalifa Port (Abu Dhabi)

• Charged to: Importer/consignee

**When It Applies:**

• Import containers sitting at port after discharge

• Container has not been picked up within free time period

**Free Time for Demurrage (Jebel Ali Port):**

The "free time" is the grace period before demurrage starts accumulating:

| Container Type | Free Time | Notes |

|----------------|-----------|-------|

| 20' Dry Container | 3-5 days | From discharge date |

| 40' Dry Container | 3-5 days | From discharge date |

| 40' High Cube | 3-5 days | From discharge date |

| 20' Reefer (refrigerated) | 2-3 days | Shorter due to power usage |

| 40' Reefer | 2-3 days | Shorter due to power usage |

| Hazardous (IMCO) | 2-3 days | Shorter for safety reasons |

| Free Zone Import (JAFZA) | 5-7 days | Extended free time in free zones |

**Note:** Free time starts from the **discharge date** (when container is unloaded from vessel), NOT from the arrival notice date.

**Demurrage Rates (DP World Jebel Ali 2024-2025):**

|----------------|----------|----------|-----------|----------|

**Calculation Example (40' Dry Container - 10 Days at Port):**

• Days 1-3: Free (AED 0)

• Days 4-7: 4 days × AED 600/day = AED 2,400

• Days 8-10: 3 days × AED 1,000/day = AED 3,000

• **Total Demurrage: AED 5,400**

**When Is Demurrage Billed:**

• At the time of container pickup from port

• Must be paid before port will release container

• Payment cannot be deferred or invoiced later

**How to Avoid Demurrage:**

1. Complete customs clearance within 2 days of cargo arrival

2. Have all import documents ready before cargo arrives

3. Pay customs duties/VAT immediately upon clearance

4. Schedule container pickup within free time period

5. Use a freight forwarder with fast DO processing

Detention Explained (Shipping Line Charge)

**Definition:**

Detention is a charge imposed by the shipping line for keeping their container beyond the allowed free time after it has left the port premises.

**Who Charges It:**

• Shipping line: MSC, Maersk, CMA CGM, COSCO, Hapag-Lloyd, ONE, etc.

• Charged to: Importer (for imports) or Exporter (for exports)

**When It Applies:**

• Container has left port and is at your warehouse/facility

• Container has not been returned to carrier's empty depot within free time

**Key Distinction from Demurrage:**

Demurrage applies when container is AT port. Detention applies when container is OUTSIDE port.

**Free Time for Detention:**

Varies by shipping line and service contract:

| Shipping Line | Import Detention Free Time | Export Detention Free Time |

|---------------|---------------------------|---------------------------|

| MSC | 7 days | 7 days |

| Maersk | 10 days | 7 days |

| CMA CGM | 7 days | 10 days |

| COSCO | 10 days | 10 days |

| Hapag-Lloyd | 7 days | 7 days |

| ONE | 7 days | 7 days |

| OOCL | 10 days | 7 days |

**Note:** Free time starts from **gate-out date** (when container leaves port), NOT from discharge date.

**Detention Rates (Carrier Average 2024-2025):**

|----------------|----------|-----------|------------|----------|

**Calculation Example (40' Dry Container - 15 Days Outside Port):**

• Days 1-7: Free (AED 0)

• Days 8-14: 7 days × AED 500/day = AED 3,500

• Days 15: 1 day × AED 800/day = AED 800

• **Total Detention: AED 4,300**

**When Is Detention Billed:**

• When empty container is returned to shipping line's depot

• Carrier invoices you after calculating total detention days

• Usually billed within 1-2 weeks of container return

**How to Avoid Detention:**

1. De-stuff container immediately upon arrival at warehouse

2. Return empty container to carrier depot within 7 days of gate-out

3. Use "drop and pick" service (carrier swaps empty container immediately)

4. Negotiate extended detention free time for regular shipments

5. Plan warehouse operations to process cargo quickly

Storage Explained (Warehouse/CFS Charge)

**Definition:**

Storage is a charge for cargo (not the container) stored in a warehouse or CFS (Container Freight Station) beyond the allowed free time.

**Who Charges It:**

• Warehouse operator

• CFS (Container Freight Station) operator

• Port storage facility (for LCL cargo)

**When It Applies:**

• LCL cargo stored at CFS after de-stuffing from container

• FCL cargo de-stuffed and stored at private warehouse

• Loose cargo or break-bulk cargo at port storage area

**Key Distinction:**

Storage charges apply to **cargo** (your goods), not the container. The container has already been returned to the carrier, but your cargo is sitting in a warehouse.

**Free Time for Storage:**

| Storage Type | Free Time | Notes |

|--------------|-----------|-------|

| CFS Storage (Jebel Ali) | 3-5 days | After customs clearance |

| Private Warehouse | 5-7 days | Negotiable with warehouse |

| Airport Cargo Terminal | 3 days | After flight arrival |

| Port Break-Bulk Storage | 3 days | For non-containerized cargo |

**Storage Rates (Jebel Ali CFS 2024-2025):**

|------------|------|----------|----------|---------|

**W/M = Weight/Measurement** (whichever is higher):

• Volume measurement (CBM): Length × Width × Height ÷ 1,000,000

• Weight: Actual weight in tons

• Charge is based on whichever yields higher volume

**Calculation Example (10 CBM LCL Cargo - 8 Days in CFS):**

• Days 1-3: Free (AED 0)

• Days 4-7: 4 days × (10 CBM × AED 15/CBM) = AED 600

• Day 8: 1 day × (10 CBM × AED 25/CBM) = AED 250

• **Total Storage: AED 850**

**When Is Storage Billed:**

• When cargo is collected from warehouse/CFS

• Must be paid before cargo release

**How to Avoid Storage:**

1. Arrange final delivery/distribution before cargo arrival

2. Use direct delivery (port to final destination, no warehousing)

3. For LCL, collect cargo within 3 days of customs clearance

4. Negotiate extended free time with private warehouse providers

Combined Charges Scenario: The Nightmare Example

To illustrate how these three charges can accumulate simultaneously, let's look at a worst-case scenario where an importer makes every possible mistake:

**Scenario:**

• **Importer:** First-time Dubai importer (electronics retailer)

• **Cargo:** 40' dry container with 10 CBM of laptops

• **Problem:** Importer forgot to obtain TDRA permit before cargo arrival

**What Went Wrong:**

**Days 1-3:** Container arrives at Jebel Ali Port

• Importer realizes TDRA permit is required

• Applies for TDRA permit (processing time: 5-7 days)

• Container sits at port waiting for permit

**Days 4-10:** Waiting for TDRA permit (container still at port)

• **Demurrage starts accumulating** (Days 4-10 = 7 days)

- Days 4-7: 4 days × AED 600/day = AED 2,400

- Days 8-10: 3 days × AED 1,000/day = AED 3,000

- **Demurrage total: AED 5,400**

**Day 10:** TDRA permit approved

• Customs clearance completed

• Container finally leaves port (gate-out)

**Days 10-25:** Container at importer's warehouse (delayed de-stuffing)

• Importer has warehouse staffing issues, de-stuffing delayed

• Container sits at warehouse for 15 days before being emptied

• **Detention starts accumulating** (Days 10-25 = 15 days outside port)

- Days 1-7 (free time): Free = AED 0

- Days 8-14: 7 days × AED 500/day = AED 3,500

- Day 15: 1 day × AED 800/day = AED 800

- **Detention total: AED 4,300**

**Days 25-33:** Cargo de-stuffed, stored at warehouse

• Container finally returned to MSC depot on Day 25

• Cargo (10 CBM laptops) stored at warehouse for 8 more days

• **Storage starts accumulating** (8 days in warehouse)

- Days 1-3 (free time): Free = AED 0

- Days 4-7: 4 days × (10 CBM × AED 15/CBM) = AED 600

- Day 8: 1 day × (10 CBM × AED 25/CBM) = AED 250

- **Storage total: AED 850**

**Total Penalty Charges:**

| Charge Type | Amount (AED) |

|-------------|--------------|

| Demurrage (10 days at port) | 5,400 |

| Detention (15 days outside port) | 4,300 |

| Storage (8 days in warehouse) | 850 |

| **Grand Total Penalty** | **10,550** |

**Context:**

• Cargo value: AED 20,000 (10 CBM of laptops)

• Penalty as % of cargo value: **53%**

• Total import cost (duties/VAT/fees): AED 5,000

• Penalty charges exceeded normal import costs by **211%**

**What Should Have Been Done:**

1. **Before Cargo Ships:** Apply for TDRA permit (5-7 days before arrival)

2. **Day 0-1:** Complete customs clearance immediately (within 2 days)

3. **Day 2:** Pick up container from port (within 3-day free time)

4. **Day 2-3:** De-stuff container immediately at warehouse

5. **Day 4:** Return empty container to MSC depot (within 7-day detention free time)

6. **Day 4:** Distribute cargo to retail locations

**Result if done correctly:**

• Demurrage: AED 0 (collected within free time)

• Detention: AED 0 (returned within free time)

• Storage: AED 0 (cargo distributed immediately)

• **Total penalty: AED 0**

**Difference: AED 10,550 wasted due to poor planning**

Key Takeaways

• **Demurrage, detention, and storage are three DIFFERENT charges** from three different parties.

• **Demurrage** = Port charges (container at port beyond free time)

• **Detention** = Shipping line charges (container outside port beyond free time)

• **Storage** = Warehouse charges (cargo in warehouse beyond free time)

• **Free time is measured in calendar days** (includes weekends and public holidays).

• **Free time starts from different dates** for each charge type:

- Demurrage: From discharge date

- Detention: From gate-out date (when container leaves port)

- Storage: From customs clearance date (for LCL) or de-stuffing date (for FCL)

• **Combined charges can exceed 50% of cargo value** if you're not careful.

• **Smart planning = AED 0 in penalties.** Most penalties are avoidable with proper preparation.

• **Always track free time expiry dates.** Set calendar reminders for:

- Day 3: Last day of port free time (demurrage starts Day 4)

- Day 7: Last day of detention free time (detention starts Day 8)

- Day 5: Last day of storage free time (storage starts Day 6)

• **Pre-clearance is key:** Obtain permits, prepare documents, and have payment ready BEFORE cargo arrives.

References & Data Sources

This guide is based on verified information from:

• DP World Jebel Ali Port Tariff (2024-2025 edition)

• MSC, Maersk, CMA CGM, COSCO detention tariff schedules (November 2024)

• Dubai Customs procedural guide and import requirements

• Freight Systems DWC and SCLL verified freight forwarder rates

• CustomsEZ user feedback from 1,300+ Dubai customs professionals

**Important Disclaimer:**

All rates quoted are current as of November 2024 and may change. Always verify current rates with:

• Port operator (DP World) for demurrage rates

• Shipping line for detention rates

• Warehouse/CFS operator for storage rates

Understanding Demurrage vs Detention vs Storage in UAE Ports: Complete Guide (2025)

Introduction

The Core Difference: What Each Charge Means

Demurrage Explained (Port Terminal Charge)

Detention Explained (Shipping Line Charge)

Storage Explained (Warehouse/CFS Charge)

Combined Charges Scenario: The Nightmare Example

Key Takeaways

References & Data Sources

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