In international maritime transport, one of the most frequently encountered concepts, yet often not fully understood by shippers and consignees, is demurrage. With the widespread use of container shipping, this charge has become a significant item in transport costs; if not acted upon in time, it can multiply the freight charge and, in some cases, even exceed the value of the cargo, turning into a serious cost item. Below, we examine the concept of demurrage in all its dimensions.

1. Definition of Demurrage Charge

Demurrage, semantically, is a term derived from the French verb demeurer (to stay, to wait); in maritime trade law, it refers to the compensatory fee paid due to the use or retention of a transport vehicle or transport equipment (container, ship) exceeding the designated free period (free time / laytime).

In the Turkish Commercial Code, the concept of demurrage is referred to by the term super-demurrage (sürastarya). The regulations for laytime (loading-unloading period) and super-demurrage (waiting period) stipulated for vessels in Article 1153 et seq. of the Turkish Commercial Code (TCC) are also applied by analogy to container shipping in practice. However, in modern container shipping, the concept of demurrage has evolved as the charge for the container’s prolonged stay in the port area or under the consignee’s possession, rather than the vessel’s.

Two basic types of demurrage should be distinguished:

Vessel demurrage: It is the compensation paid to the shipowner (charterer) when the vessel exceeds the agreed laytime for loading or unloading under a charter party (ship chartering agreement). This type of demurrage is more common in bulk cargo, tanker, and charter shipments.

Container demurrage: In liner shipping, it is the fee paid to the carrier (shipowner) due to the container being kept in the port/terminal area beyond the free period. This type of demurrage is the most frequently encountered type in current practice.

2. Concepts Often Confused with Demurrage

In practice, there are other charges that are frequently confused with demurrage fees but have different legal characteristics. Making this distinction is critically important for both commercial calculations and for accurately addressing legal disputes.

Detention (Container Holding Fee): Unlike demurrage, detention is the fee charged when the time given to return the container to the carrier is exceeded after it has been removed from the port area, i.e., at the consignee’s warehouse or facility. Demurrage can be summarized as “waiting at the port,” while detention is “late return after leaving the port.” Some carriers combine these two items and collect them under a single tariff called “merged demurrage and detention.”

Storage (Storage Fee): It is the fee paid to the port or terminal for the space occupied by the container within the port area. While demurrage is paid to the carrier (shipowner/forwarder), storage is paid directly to the port operator. In case of a container delay, both demurrage and storage invoices may come together.

Sürastarya: It is the Turkish equivalent in the Turkish Commercial Code (TTK) and is used for vessel waiting time; however, conceptually, it largely overlaps with demurrage.

Dispatch: As the complete opposite of demurrage, this is the premium paid to the carrier when the vessel completes loading/unloading before the laytime expires.

3. Legal Nature of Demurrage Charges

In Turkish law, the legal nature of demurrage has been evaluated differently by the Court of Cassation and legal doctrine. The dominant view is that demurrage is in the nature of lump-sum compensation (fixed compensation). The practical consequences of this evaluation are important:

Since demurrage is in the nature of lump-sum compensation, the carrier does not need to additionally prove that actual damage has occurred to claim this amount. The use of the container beyond the free time is sufficient on its own for the demurrage claim to arise. This approach is consistently adopted in the decisions of the Court of Cassation.

In addition, demurrage is considered an accessory of freight. Pursuant to Article 1207 of the Turkish Commercial Code (TCC), the primary debtor for freight and its accessories is the carrier. This categorization is crucial in the discussion of who will be held responsible for demurrage.

Although some authors evaluate demurrage as a penalty clause, the Court of Cassation generally does not adopt this view and maintains a reserved stance on requests for reduction.

4. Concept of Free Time / Laytime

To understand demurrage, the concept of free time must be well understood. Free time refers to the period during which a container can be held free of charge in the port area or at the disposal of the consignee. No fee is paid during this period.

The length of the free time depends on many variables: the carrier’s tariff, the type of transport (import/export/transit), the container type (dry/reefer/special equipment), port practices, special provisions agreed upon in the freight contract, and framework agreements between the customer and the carrier.

In practice, the free time for containers generally varies between 5 and 14 days; however, for reefer (refrigerated) containers, this period can decrease to 3 days, and can extend to 21 days in special customer agreements. For containers imported into Turkey, the standard free time is usually applied as 7-10 days.

As soon as the free time expires, demurrage charges begin, and usually a progressive tariff is applied:

This example tariff is provided for informational purposes only; charges vary significantly for each shipping line and port. For high-volume reefer containers, daily demurrage can exceed 300 USD.

5. Typical Reasons Leading to Demurrage

When demurrage charges arise, it is crucial from which party’s area of activity the delay originated. According to practical observation, the most common reasons for delays are:

Customs processes: Incorrect or incomplete declarations, HS code objections, objections to tax accrual, physical inspections, laboratory analysis durations, and TAREKS inspections. These processes are the most frequent cause of demurrage in imports to Turkey.

Letter of credit and payment processes: Waiting for the letter of credit to be opened or payment to be made for the endorsement of the bill of lading.

Document deficiencies: Incomplete or incorrectly issued documents such as a certificate of origin, A.TR, EUR.1, health certificate, or CE certificate.

Shipper/consignee-related instruction delays: Failure to provide discharge instructions on time, consignee’s refusal to accept the cargo, or failure to make a post-transportation shipment plan.

Port and force majeure factors: Strikes, bad weather conditions, port congestion, or customs system failures. In these cases, responsibility is debatable, and contractual provisions are decisive.

6. Points to Consider in Calculating Demurrage Fees

To reach the correct result when calculating demurrage fees, the following elements must be checked:

Accuracy of the daily tariff: It should be checked whether the daily fee requested by the carrier is consistent with the tariff referred to in the bill of lading or notified to the carrier. If no tariff information has been provided or there is no reference in the bill of lading, the demurrage claim may be rejected.

Correct counting of durations: Generally, demurrage is calculated as calendar days, including weekends and public holidays. However, if “working days” instead of “running days” have been agreed upon in the contract, these days are excluded.

VAT and other taxes: VAT is applied to demurrage fees. VAT exemption may apply to international invoicing.

Proof of actual payment: The contractual carrier must document the amount paid to the actual carrier. Amounts that cannot be proven or that are inflated by adding commission will be rejected.

7. Ways to Prevent Demurrage

From a practical perspective, measures that can be taken to avoid demurrage include:

Preparing customs documents and obtaining necessary permits before import; completing letter of credit processes before vessel arrival; negotiating with the shipowner in advance to extend the free period (especially for high-volume customers); tighter planning for reefer and special containers; carefully reviewing the bill of lading and freight contract for demurrage clauses; correctly choosing the INCOTERMS delivery method (EX-W, FOB, CIF delivery methods have a direct impact on demurrage liability).

8. Conclusion

Demurrage is a cost item in maritime trade that may seem minor but can quickly spiral out of control. Its legal nature as an accessory to freight usually leads to the carrier being held responsible for it. However, in a specific case, which party is responsible is determined by a joint assessment of factors such as contractual provisions, bill of lading records, whether tariff information was provided, which party’s sphere of activity the delay occurred within, and whether payment has been proven.

Parties who claim container demurrage or are faced with a demurrage claim against them should fully preserve bills of lading, freight contracts, tariff information, and payment documents, and work with a lawyer specializing in maritime law when a dispute arises. This is the most effective way to prevent loss of rights.

Frequently Asked Questions

1. Who is responsible for demurrage charges arising from delays at the loading port?

The shipper, as a party to the freight contract, is the primary debtor for freight and incidental expenses under Article 1207 of the Turkish Commercial Code. Since container delay charges (demurrage) are considered incidental to freight, the shipper is responsible for demurrage arising from delays at the loading port, unless otherwise agreed in the bill of lading. In cases where the delay results from the shipper’s scope of activity or fault, the amounts paid by the carrier to the shipowner or the actual carrier can be recouped from the shipper.

2. What conditions are required for demurrage charges to be collected from the shipper?

Courts look for three fundamental conditions: (i) there must be a contractual provision between the parties stating that demurrage will be paid, or a clear record to this effect in the bill of lading, (ii) the shipper must be informed on how to access the demurrage tariff (e.g., a web address on the bill of lading), (iii) the contracting carrier must prove with documents the payment made to the actual carrier. The contracting carrier cannot add a commission on top of the amount paid to the actual carrier or demand an amount exceeding it.

3. In what cases can the shipper not be held responsible for demurrage charges?

If the carrier causes the delay due to its own fault (e.g., by carrying the cargo to the wrong port), the demurrage period does not run, and the shipper is not responsible. Furthermore, in delivery terms such as EX-W, liability does not arise if the defendant does not hold the status of a shipper and has not given transportation instructions. If the goods have been actually delivered to the consignee, the carrier cannot demand from the shipper the receivables it could claim from the consignee, in accordance with Article 1205/1 of the Turkish Commercial Code (TCC); however, if the goods have not been received, the shipper’s liability continues.

Why is Expert Legal Support Essential?

Although demurrage disputes may seem like simple debt collection cases at first glance, they are actually technical lawsuits that require the joint evaluation of various sources such as maritime commercial law, the CMR Convention, bill of lading provisions, and INCOTERMS. Even a one-day delay at the loading port can lead to tens of thousands of dollars in liability, depending on the interpretation of the contractual clause between the parties, whether tariff information was provided, and whose area of activity the delay originated from. Especially in transports carried out via Istanbul and Kocaeli ports (Ambarlı, Haydarpaşa, Tuzla, Kumport, Evyap, DP World Yarımca, Asyaport); the correct reading of bill of lading records, proof of the demurrage tariff, documentation of payments made to the actual carrier, and, if necessary, directing the recourse action to the correct party are factors that determine the outcome of the case.

At this point, obtaining support from an Istanbul maritime trade lawyer or a Tuzla maritime trade lawyer is the most effective way to prevent loss of rights. Considering the concentration of shipyards, ports, and logistics bases in the Marmara Region, especially Tuzla; working with a law firm specializing in maritime law is crucial for properly structuring the relationships between the shipowner, carrier, freight forwarder, and consignee. 2M Hukuk Law Office provides its clients with expert legal support in maritime trade law for international transport disputes arising from Istanbul and Kocaeli ports, including demurrage, dispatch, freight claims, bill of lading disputes, and recourse claims under CMR. Consulting an expert maritime trade lawyer at the beginning of the process to minimize the cost of a delay at the loading port or to develop a defense against an unfair demurrage claim will be crucial for both the course of the case and the sustainability of commercial relationships.