A container that overstays its welcome in port doesn't generate one surprise charge — it can generate two. Storage and demurrage both accrue because cargo sat somewhere longer than planned, and both show up on the invoice looking similarly unpleasant. But they're levied by different parties, calculated on different clocks, and knowing which is which determines who you call to dispute the bill.
What's the difference between storage and demurrage?
Storage is a fee the terminal operator charges for the physical yard space a container occupies; demurrage is a fee the carrier charges for keeping their container equipment beyond the free days they granted. Storage is about square footage in a facility. Demurrage is about a piece of equipment — the box itself — not being returned to circulation on schedule. Different landlord, different bill.
Because they measure different things, the two charges run on independent clocks with independent free-time allowances, and a shipment can trigger one, the other, both, or neither depending entirely on how the cargo actually moved.
Who charges each, and when the clock starts
Demurrage is a carrier charge. It applies when a loaded container sits inside the port or terminal beyond the carrier's free days — most commonly because an import wasn't collected in time, or an export was gated in too early and then delayed. The clock typically starts at vessel discharge for imports.
Storage (often shown as STG on an invoice) is a terminal-operator charge, separate from the carrier entirely. The terminal is billing for the yard space your cargo is physically occupying, independent of whose container it's in or what the carrier's own free-time policy says. Some terminals grant their own short free-storage window before the fee kicks in; others start billing almost immediately once cargo is available for pickup.
Common reasons both start ticking:
- Customs holds or exam orders that keep cargo from being released
- Delayed arrival notice or bill-of-lading release paperwork
- Consignee not ready to collect — warehouse capacity, trucking, or labour constraints
- Port congestion slowing the release and gate-out process
Can storage and demurrage apply at the same time?
Yes — and this is the single most common source of invoice confusion. Storage is a separate, terminal-levied charge that can run in parallel with demurrage. A container parked in the yard past both the terminal's storage-free period and the carrier's demurrage-free period accrues both fees for the same days, billed by two different parties, appearing as two different lines on (or across) your paperwork.
| Demurrage | Carrier charge — loaded container inside the terminal past the carrier's free days |
|---|---|
| Storage (STG) | Terminal-operator charge — yard space occupied, independent of the carrier's free-time policy |
| Can they overlap? | Yes — both can accrue on the same container for the same dwell days |
| Typical free time | Commonly around 3–7 calendar days, but set independently by carrier and terminal |
| Escalation | Both are typically tiered — the daily rate rises the longer the container dwells |
Because the two free-time clocks rarely line up exactly, it's possible to clear one deadline and still miss the other. A shipper who tracks only the carrier's demurrage free days can be blindsided by a terminal storage invoice that started accruing on a different date entirely.
Storage vs demurrage vs detention — three charges, three triggers
Detention is the third charge that gets pulled into this confusion, so it's worth placing all three side by side. Detention is a carrier charge for keeping the container outside the terminal past the free return window — the empty box picked up but not brought back in time. Storage and demurrage are both about cargo still sitting inside or at the terminal; detention is entirely about what happens after the box leaves.
| Storage | Demurrage | Detention | |
|---|---|---|---|
| Charged by | Terminal operator | Carrier | Carrier |
| Where it accrues | Terminal yard/warehouse | Inside the port/terminal | Outside the terminal |
| What triggers it | Cargo occupying yard space past the terminal's free period | Loaded container not collected (or export gated in too early) | Empty container not returned in time |
| Runs alongside | Can run parallel to demurrage | Can run parallel to storage | Independent — starts after gate-out |
Reading an invoice line by line against this table is the fastest way to work out which party actually issued the charge — and therefore who to contact first when disputing it.
Why the confusion costs shippers money
Most shippers who get hit by an unexpected storage or demurrage bill assumed a single free-time window applied to the whole dwell period. In practice, the carrier's demurrage clock and the terminal's storage clock are set by two separate parties who don't coordinate their allowances. Assuming one deadline covers both is the single most common reason these charges arrive as a surprise rather than a known risk.
The other cost driver is that both charges are usually tiered: a modest daily rate for the first bracket, escalating sharply after that. A container that dwells ten days past both free-time windows can rack up charges from both the terminal and the carrier simultaneously, each compounding on its own schedule. On a short trade lane, that combined bill can exceed the underlying freight cost.
How to avoid getting hit by both
Track both clocks separately, not as one deadline. Ask the carrier for their demurrage free-time terms and the terminal for its storage-free allowance before the vessel arrives — don't assume they match.
Practical steps that reduce exposure to both charges:
- Confirm bill-of-lading release or telex release well before the vessel berths, so collection isn't held up by paperwork
- Pre-file customs entry early so clearance can complete inside both free-time windows, not just one
- Work with a customs brokerage partner on the destination side — faster clearance shortens dwell time against both clocks at once
- Book destination trucking as soon as the vessel schedule is confirmed, so collection isn't waiting on drayage availability
- On LCL shipments, confirm deconsolidation and release timing early, since consolidated cargo often has a tighter combined release window
- If a delay looks unavoidable, contact both the carrier and the terminal — extensions on either free-time window are more likely to be granted before the clock expires than after
How Holo Cargo helps
On an itemised ocean FCL quote from Holo Cargo, terminal handling and storage are shown as their own destination line items, separate from carrier charges, so you can see which party is billing what before a shipment even moves. Our operations team tracks both the carrier's free-time terms and the terminal's storage allowance in parallel and coordinates with customs-brokerage and drayage partners to keep cargo moving inside both windows.
