Per diem charges are a common source of confusion—and unexpected cost—for importers and exporters. Whether you’re new to shipping or managing high-volume freight, understanding how per diem works, how it differs from detention and demurrage, and how these fees are applied in 2025 can save you thousands of dollars. This guide breaks down each charge in simple terms and provides practical tips to avoid unnecessary penalties.
What is per diem charge?
Also known as “detention,” a per diem charge is the fee that an ocean carrier charges for each day past the number of “free” days a container spends away from the port.
Why Per Diem Charges Exist
Per diem charges exist because it is important for ocean carriers to stay on schedule and to do that they need their containers in circulation not sitting somewhere holding a shipper’s goods. Thus, per diem charges discourage importers from storing containers for an extended period of time.
Cost of Per Diem Charges
Per diem charges vary by carrier and port, but they normally range between $100 and $250 per day for each container.
Storing Cargo Without Paying Per Diem
The best way to store cargo without incurring per diem charges is to have your cargo offloaded and stored at a warehouse. While warehousing isn’t free, it will be significantly cheaper than per diem charges and will allow the trucker to return the container to the carrier in time.
Basic Tips on Avoiding Per Diem Charges
How can I avoid per diem charges?
• Keeping track of the containers or other ‘borrowed’ equipment once you’ve pulled them from the yard.
• Making sure you are clear on when they need to be returned to the yard.
• Handling the containers at hand in a “first in first out” technique – meaning the oldest inventory items (containers/equipment) are handled first so once they’re emptied, they can be returned without delays.
Need help? Reach out to one of our experts to make sure you don’t miss any important documents in the import process.
Per Diem vs Detention vs Demurrage vs Storage Charges
Here’s the clearest and simplest breakdown of all four charges in container shipping.
1. Demurrage
Where the container is:
📍 Inside the port/terminal (full container)
What it means:
You didn’t pick up the full container from the port within the allowed free days.
Charged by:
🚢 The carrier (shipping line)
Example:
Free time = 5 days
You pick up container on day 8 → 3 days demurrage
2. Detention
Where the container is:
Outside the port after you have already picked it up (container is empty or full)
What it means:
You didn’t return the empty container to the carrier within free time.
Charged by:
🚢 The carrier
Example:
Free time for empty return = 7 days
You return it on day 10 → 3 days detention
3. Per Diem
Meaning depends on the region:
In most global shipping:
➡️ Per diem = a general term for daily penalty
➡️ Often used interchangeably with detention
In the U.S., trucking & rail:
➡️ Per diem = detention fee for late empty return
(So practically: Detention = Per diem)Charged by:
🚢 Carrier
🚛 Trucking company (sometimes)
4. Storage Charges
Where the container is:
📍 Inside the port/terminal
Charged by:
🏢 The port or terminal operator, NOT the carrier
What it means:
You are occupying port land/yard space longer than allowed.
Example:
Even if demurrage is waived by carrier,
the terminal may still charge storage because your container is sitting on their land.
The Easiest Way to Remember
| Charge Type | Where Is the Container? | Who Charges It? | Why? |
| Demurrage | In port (full) | Carrier | You didn’t pick it up on time |
| Detention | Outside port | Carrier | You didn’t return empty on time |
| Per diem | Outside port | Carrier / Truck | Daily late fee (often same as detention) |
| Storage | In port | Port/Terminal | Container occupying port yard too long |
Super short summary
• Demurrage: Late pickup from port.
• Detention: Late return of empty container.
• Per diem: Daily late fee (usually same as detention).
• Storage: Port land fee for keeping container in terminal.
Detailed Explanation of Detention Charges
What Are Detention Charges in Shipping?
“Detention charges” (also known as per-diem charges) apply when a container is not returned to the port within the allotted “free days.” These number of free days is set by the steamship lines (who own the containers).
For example, if ABC Shipping Line allows five free days after the container is outdated from a terminal, any delay beyond that incurs a daily charge—often between $125 and $175 per container per day.
These are distinct from demurrage charges, which occur when a container sits too long at a marine terminal after discharge but before being picked up. The number of “free time” here is set by terminal operators – so there can be differing numbers of free days between terminals at the same port.
Demurrage charge amounts vary from by port, terminal operator, and container type (20′, 40′, reefer). At Total Terminals International (TTI) at Port of Long Beach, for example, charges start at $175/day for dry containers and can rise to well above $300/day.
Regulatory Environment in 2025
Federal Rulemaking and 2025 Enforcement Gaps
The Ocean Shipping Reform Act (OSRA) of 2022 led to updated guidance from the Federal Maritime Commission (FMC), requiring that detention and demurrage charges be reasonable and related to actual cargo movement. But in 2025, several challenges remain:
• Enforcement is inconsistent, with limited FMC resources and a growing backlog of complaints.
• Proposed billing reforms, including invoice transparency and time stamp requirements, are still under review, leaving a regulatory gray area.
• Anecdotally, some shippers report that steamship lines (SSLs) are raising the documentation burden in per-diem disputes, making it harder to prove eligibility for waivers or refunds.
Why Detention Charges Are Back in the Spotlight in 2025
Chassis Shortage: Not a Current Issue, but a Watchpoint
The domestic chassis supply has normalized for now—but could tighten quickly if post-tariff trade realignments drive up containerized imports. Should container volume spike later in the year, regional chassis pools may face sudden constraints, especially in secondary markets.
Persistent Global Volatility
While the Red Sea conflict has eased somewhat, political instability in the region remains a wildcard. Any flare-up could trigger schedule changes, port bunching, or late vessel arrivals that compress free time windows for U.S. importers.
More Assertive Terminal Fee Enforcement
Terminals continue to aggressively enforce shorter free time allowances and more rigid billing cycles. Even minor missteps—such as missing an appointment by an hour—can result in full-day charges. Appeals often require meticulous documentation, and many importers simply pay the charge to keep cargo flowing.
Advanced Tips on Avoiding Per Diem Charges
Many importers and exporters have experienced per diem charges at some point in their career. These charges can get expensive, starting at a low of around $100 per day and reaching upwards of $600 per day in some instances.
Here are a few tips on how you can avoid per diem charges and get your containers out of the port during the allotted free days:
Contract Specifications
The contract you have with your carrier will indicate the exact number of free days your container will receive at the port.
If you have any experience shipping from the port in question, you should know approximately how much time it takes to move your container.
These numbers can be negotiated to ensure that the deal works out for you and your carrier. Make sure your carrier is well-informed of your concerns before negotiating.
Have detailed experiences readily available if you have had previous issues at the port.
Whoever books the shipment is responsible for negotiating these free days with the carrier. In the case of many customers, their freight forwarder may be the one to do the talking.
Draymen Scheduling
Containers have to be picked up from the port by a drayman, and depending on the port, this isn’t always an easy task.
Congested ports such as LA and Long Beach make it difficult for draymen to get in and out, and certain cities may have draymen that are booked out farther in advance.
Our biggest tip is to schedule a drayman as soon as you have a shipment booked.
When you know the day the container will arrive, search for draymen that can handle the task.
We also recommend booking a drayman to pick up the container as soon as it’s available.
If you have 4 days of free time, schedule pickup for the first day—not the fourth.
This gives you time to find a backup in case your original drayman falls through.
Cleaning, Labeling, and Packaging
Unfortunately, many shippers experience per diem charges due to containers being pulled for inspections.
U.S. Customs is allowed to pull containers for any reason even on the last allotted free day.
While you can’t avoid being pulled for an inspection, you can avoid negative outcomes:
• Properly clean your container.
• Remove bugs, seeds, or vegetation.
• Properly label everything.
• Make sure hazardous goods documentation is easy to find.
This decreases the chance of rejection and reduces inspection time, hopefully resulting in a smooth transit out of the port.
Final Remarks
Per diem, detention, demurrage, and storage charges can quickly add up, but they are also manageable when you understand how they work and plan ahead. By tracking container movements, coordinating drayage early, and keeping documentation in order, shippers can significantly reduce the risk of unexpected fees. Staying informed about evolving regulations and port conditions will help you stay ahead and keep your supply chain running smoothly.
