Atlas Claims InsightsPublished 9 October 2026 · Reviewed 14 October 2026 · 5 min readKey takeaways
- Under a voyage charter, demurrage is agreed liquidated damages for exceeding laytime; detention is unliquidated damages for other delay.
- In container shipping, demurrage usually covers containers inside the terminal; detention covers containers kept outside.
- Demurrage claims depend on a valid NOR, a correct laytime calculation and compliance with time bars.
- Detention claims must be proved like ordinary damages, so evidence of loss matters.
“Demurrage” and “detention” are both about delay, and both are about money. But they arise in different situations, are calculated differently and must be proved in different ways. Confusing them can undermine an otherwise good claim.
Demurrage under a voyage charter
A voyage charter usually allows the charterer a fixed amount of time, called laytime, to load and discharge the cargo. If laytime is exceeded, the charterer pays demurrage at an agreed daily rate. Under English law, demurrage is a form of liquidated damages: the owner does not need to prove its actual loss, only that laytime was exceeded and by how much.
- Laytime usually starts after a valid notice of readiness has been tendered, subject to the charter terms.
- Exceptions in the charter, such as bad weather or shifting, can stop laytime running.
- Once on demurrage, the general rule is “once on demurrage, always on demurrage”, unless the charter says otherwise.
Detention under a voyage charter
Detention is damages for delay that falls outside the agreed demurrage regime: for example where the charter limits the demurrage period and that period has expired, or where the vessel is delayed in breach of contract before laytime starts. Because detention is unliquidated, the owner must prove its actual loss, often by reference to the market rate for the vessel.
Demurrage and detention in container shipping
In the container trades, the terms are used differently:
| Charge | What it usually covers |
|---|---|
| Container demurrage | Full containers left inside the port or terminal beyond the free time |
| Container detention | The carrier’s containers kept outside the terminal (by the shipper or consignee) beyond the free time |
| Combined charges | Some carriers combine both into a single daily charge after free time |
Container charges depend on the carrier’s tariff and the terms of the bill of lading or service contract, and they can escalate quickly when cargo is held up by customs, documentation or a payment dispute.
Why the distinction matters
- Proof: demurrage needs a correct laytime calculation; detention needs evidence of loss.
- Time bars: charter parties often impose short time bars on demurrage claims, with specified documents.
- Pass-through claims: traders often need to pass demurrage down a chain of sale contracts, each with its own terms and deadlines.
Practical point: label the claim correctly and present it on the right basis. A detention claim presented as demurrage, or the reverse, invites an easy rejection.
Quick answers
What is the difference between demurrage and detention?
In a voyage charter, demurrage is the agreed daily rate for exceeding laytime; detention is unliquidated damages for other delay. In container shipping, demurrage covers containers inside the terminal and detention covers containers outside it.
Do I need to prove loss to claim demurrage?
No. Demurrage is liquidated damages, so the owner needs to show only that laytime was exceeded and by how much.
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This guide is general information about the law of England and Wales as at October 2026. It is not legal advice and may not cover your situation. Atlas Claims is not a law firm; for advice on your legal rights or on litigation, consult a qualified solicitor.
