Demurrage and Detention Charges at Karachi Ports — Free Time, Rates, and How to Avoid Them
Quick Answer
Demurrage is charged when a container stays inside the port beyond its free days; detention is charged by the shipping line when you keep its container after gate-out. Free time typically runs 3 to 7 days, and charges commonly run USD 75 to 300 per container per day once it lapses.
| Demurrage | Charged when the container sits inside the port or terminal beyond free days |
|---|---|
| Detention | Charged by the shipping line when the container stays out beyond free days after gate-out |
| Typical free time | 3-7 days for demurrage and 4-7 days for detention, depending on carrier and trade lane |
| Daily cost | Commonly USD 75-300 per container per day once free time lapses |
| Global impact | Demurrage and detention cost the shipping industry an estimated USD 22 billion per year |
Demurrage is what you pay when your container sits inside the port or terminal beyond its free days; detention is what the shipping line charges when you keep its container beyond free days after it has left the port. At Karachi Port and Port Qasim, free time typically runs 3 to 7 days, and once it lapses, charges commonly run USD 75 to 300 per container per day. This post explains the difference between the three delay charges, how much free time you actually get, what the daily rates look like, and the practical steps importers use to avoid paying them at all.
What is the difference between demurrage and detention?
The two charges cover different phases of the container's journey, and they are billed by different parties.
Demurrage is charged when your loaded container occupies space inside the port or terminal beyond the allowed free time. The terminal has limited yard space, so the charge exists to push importers to clear and remove containers quickly.
Detention is charged by the shipping line when you keep its container equipment beyond the free days after the container gates out of the port. The line wants its box back in circulation; every day you hold it at your warehouse is a day it cannot be re-leased.
Storage charges can apply separately when cargo sits beyond the allowed storage period at the terminal or an off-dock facility, as explained in DHL's guide to demurrage, detention, and storage charges.
| Charge | Who charges it | When the clock starts |
|---|---|---|
| Demurrage | Port/terminal side | When free days inside the terminal lapse |
| Detention | Shipping line | When the container stays out beyond free days after gate-out |
| Storage | Terminal/off-dock storage | When cargo sits beyond the allowed storage period |
The critical point: you can pay all three on the same container. A slow clearance triggers demurrage, a slow unstuffing at your warehouse triggers detention, and overflow cargo shifted to an off-dock yard triggers storage.
How much free time do containers get at Karachi?
Standard free time is typically 3 to 7 days for demurrage and 4 to 7 days for detention, depending on the carrier, the port, and the trade lane. There is no single Karachi-wide number — each shipping line publishes its own tariff.
As a concrete Karachi example, OOCL's published Pakistan tariff allows 5 calendar days of standard free time for export shipments at Karachi. Other carriers set their own allowances, so always check the tariff for your specific line before the vessel arrives.
Free time is also negotiable. Shippers with annual service contracts often secure extra free days beyond the published tariff — for example, 7 free days where the standard tariff offers only 4. If you import regularly, ask your line or forwarder to build extended free time into your contract; it is one of the cheapest forms of delay insurance available.
How much does demurrage cost per day?
Demurrage commonly ranges from USD 75 to USD 300 per container per day. Even at the lower end, fees of USD 100 to 150 per container per day accumulate quickly and compound with every additional day of delay — a container stuck for ten days past free time can quietly add well over USD 1,000 to your landed cost, on top of the clearance charges covered in our container clearance cost breakdown.
The scale of the problem is global: demurrage and detention cost the shipping industry an estimated USD 22 billion per year, according to the 2026 demurrage and detention guide at ShippingRates.org. For an individual importer, these charges are pure loss — they buy you nothing except the penalty for delay.
What happens when a container exceeds free time?
Once free time lapses, the meter starts and does not stop until the container moves. The sequence usually looks like this:
- The demurrage clock starts inside the terminal the day after free days expire.
- Many carriers apply escalating slabs — the daily rate steps up the longer the container overstays.
- The shipping line will not issue or honor the delivery order until accrued charges are paid, so the container cannot gate out.
- After gate-out, the detention clock runs until the empty container is returned to the line's depot undamaged.
- Unpaid charges can hold up your security deposit refund and future bookings with that line.
Delays feed on themselves: a customs query that costs you two days can push you past free time, and the resulting charge dispute can cost another two. Our post on the common causes of clearance delays at Karachi covers where those first lost days usually come from, and our customs clearance time data page shows how long clearance actually takes.
How do importers avoid demurrage and detention?
The charges are avoidable with preparation. Every day saved before and during clearance is a free day preserved. The levers that work:
- File the goods declaration before or immediately on arrival. Waiting until the container lands wastes free days on paperwork you could have finished at sea.
- Have permits ready pre-arrival. For agricultural cargo, that means DPP release and quarantine documentation arranged before the vessel berths — not after.
- Respond to customs queries same-day. A query left sitting for 48 hours is 48 hours of free time gone.
- Pre-arrange transport. Book the trucker before release so the container gates out the moment it clears, not two days later.
- Return empties promptly. Unstuff fast and send the box back to the depot to stop the detention clock and release your security deposit.
Olympic Agencies has been clearing agricultural cargo — seeds, fertilizer, and machinery — at Karachi Port and Port Qasim since 1982, and beating the free-time clock is the core of what we do: declarations filed pre-arrival, permits arranged in advance, and transport standing by at release. See our customs clearing service in Karachi for the full process. If your container is racking up charges right now, WhatsApp us your container number and arrival date and we will get it moving.
Container racking up daily charges? Send us the details now and we will get it moving.
WhatsApp us your shipment details →Frequently Asked Questions
What is the difference between demurrage and detention?+
Demurrage is a port-side charge for a container occupying the terminal beyond its allowed free days. Detention is a shipping line charge for keeping the container equipment beyond free days after it has gated out of the port. Storage charges can apply separately on top of both.
How many free days do containers get at Karachi ports?+
Standard free time is typically 3 to 7 days for demurrage and 4 to 7 days for detention, depending on the carrier, port, and trade lane. As a Karachi-specific example, OOCL allows 5 calendar days of standard free time for export shipments under its published Pakistan tariff.
How much does demurrage cost per day in Pakistan?+
Demurrage commonly ranges from USD 75 to USD 300 per container per day, depending on the carrier and how long the container has overstayed. Fees of USD 100-150 per container per day accumulate quickly and compound with every additional day of delay.
Can importers negotiate extra free time with shipping lines?+
Yes. Shippers with annual service contracts often negotiate extra free days beyond the published tariff — for example, 7 free days where the standard tariff offers only 4. One-off importers generally pay the published tariff, so regular volume gives you real leverage.
Olympic Agencies
Clearing agricultural cargo - seeds, fertilizers, and machinery - at Karachi Port and Port Qasim since 1982. Members of PIFFA and the Chamber of Commerce.
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