How Much Money Traders Lose Because of Delays & Demurrage; And How to Stop It!

Demurrage and detention fees have become one of the biggest hidden costs in global shipping. Whether you trade nuts, spices, seeds, machinery, or consumer goods, D&D charges can quietly destroy your profit margin before your cargo even leaves the port.

Across the global maritime supply chain, delays cost economies more than $14 billion annually, and a huge portion of that comes directly from demurrage penalties paid by traders and freight forwarders. For companies operating through major regional hubs such as Dubai, Jebel Ali, Abu Dhabi, Dammam, Jeddah, and Sohar, understanding these fees is no longer optional — it’s essential.

This guide breaks down everything you need to know about D&D charges, why they occur, which ports are most expensive, and how to avoid them entirely.

What Are Demurrage and Detention Fees?

Demurrage Fee

A fee charged when a full container stays inside the port terminal beyond the allowed free time.

Detention Fee

A fee charged when an empty container is not returned to the shipping line within the free days.

Together, these charges are often called D&D fees.

They are designed to:

- discourage delays

- encourage faster turnaround of containers

- compensate carriers for equipment usage

But for traders, they often feel like punishment for problems outside their control.

Why Delays Happen (Even When You Plan Everything Right)

Most demurrage cases are not caused by trader negligence. Instead, they are the result of disruptions along the supply chain:

1. Documentation discrepancies

2. Late arrival of original B/L

3. Customs inspection delays

4. Port congestion

5. Labor shortages or strikes

6. Truck shortages

7. Weather disruptions

8. Container rollovers

9. Warehouse delays in unloading

When any of these occur, the clock starts ticking… and so do the charges.

How Bad Can Demurrage Get? Real Numbers from Global Ports

After the pandemic disruptions in 2020–2022, D&D charges hit record highs. Shipping lines collected $6.9 billion in D&D fees during those years alone. While rates eased in 2023–2024, many ports still charge significantly more than pre-pandemic levels.

Most Expensive Ports (After 14 Days of Delay)
 

A single container stuck for two weeks can cost a trader more than $2,000 — per container.

This is why many UAE and Middle East shippers now plan routes more strategically to avoid D&D hotspots.

The Cheapest Ports (Where Traders Rarely Get Punished)

Some ports offer extremely low D&D charges:
 

This explains why Busan and Jeddah have grown into major transshipment hubs — they simply do not penalize traders heavily for delays.

Shipping Lines With the Highest & Lowest D&D Charges

D&D fees do not only vary by port — they also depend heavily on the carrier you choose.

Highest Charges (Most Expensive)

1. CMA CGM — $719

2. COSCO — $595

3. Hapag-Lloyd — $567

More Forgiving Charges

ZIM, ONE, HMM, Yang Ming generally apply lower tariffs.

Choosing the wrong carrier can add $300–$700 extra in penalties.

Why Demurrage Is a Profit Killer

D&D doesn’t just add extra operational cost — it directly reduces your margin:

1. Shrinks profit per container

2. Increases landed cost

3. Reduces competitiveness

4. Disrupts your cash flow

5. Damages buyer-seller relationships

6. Causes cargo abandonment in extreme cases

For traders importing food commodities (nuts, spices, pulses), where profit margins are often 5–10%, a single demurrage event can wipe out the entire shipment's profit.

How to Avoid Demurrage Completely (Pro Trader Strategies)

1. Prepare Documents Early

Clear customs faster by ensuring:

1. Invoice

2. Packing list

3. COO

4. HS code accuracy

5. Import permits

   are ready in advance.

2. Track Containers in Real Time

Don’t wait for surprises. Use live tracking to monitor:

1. ETA changes

2. Delays

3. Rollovers

4. Port congestion patterns

3. Negotiate More Free Days

Shipping lines often give:

1. 3–5 free days for demurrage

2. 7–10 free days for detention

But you can negotiate more.

4. Avoid Congested Ports

If your trade lane allows alternative routing, choose ports with historically lower D&D.

5. Plan Trucking in Advance

Most delays occur during pickup due to truck shortages.

6. Use SOC Containers (Game-Changer)

SOC (Shipper-Owned Containers) eliminate D&D charges entirely.

Why? Because the container is YOURS or rented from a neutral owner — not a shipping line.

SOCs mean:

- No demurrage

- No detention

- No escalating daily fees

- Only fixed rental cost

This is how many large trading companies avoid paying $3,000+ in fees per container.

Why D&D Matters for UAE Traders Specifically

The UAE is a global re-export hub. Delays at Jebel Ali or other ports can quickly affect:

1. Iran routes

2. India-UAE trade flows

3. China-Middle East container cycles

4. African re-exports

Optimizing D&D is now part of smart trading — not optional.

Conclusion: D&D Fees Are Avoidable — But Only If You Act Early

Demurrage and detention are not just “extra charges.”

They are a major financial risk that can kill your margin, disrupt operations, and delay your entire supply chain.

But with:

- better planning

- real-time visibility

- strategic routing

- SOC containers

- choosing the right ports and carriers

…you can reduce D&D to zero.

Smart traders don’t wait for delays to happen — they prepare for them.