Logistics and distribution
Demurrage and detention disputes: the records forwarders should keep
By SourceX Editorial · Reviewed by Noah Loul ·
Short answer
Demurrage and detention disputes are decided by records, not arguments. For each container, a forwarder should keep five linked items: the free time that applied, the availability and return events with time stamps, the invoice as issued, the dispute as filed, and the outcome. Tie all five to the bill of lading and container number.
Key takeaways
- Demurrage generally accrues while a container sits at the terminal past free time; detention while carrier equipment is out past its free days.
- Many disputes turn on availability: whether the container could actually be collected or returned on the days billed.
- Capture terminal availability, holds and appointment evidence when it happens, because portals may not show past status later.
- Code every dispute with a reason and an outcome so patterns by terminal, carrier and customer become visible.
- Federal Maritime Commission billing rules may apply to how carriers and terminals invoice these charges; confirm the current text and its application with counsel.
Demurrage or detention: what each charge is measured against#
Demurrage and detention are both time-based container charges, but they run on different clocks. Demurrage generally applies while a container stays at the marine terminal beyond its free time. Detention generally applies while the carrier's container is outside the terminal beyond its free days, until it comes back.
Carriers, terminals and contracts use the terms differently. Some carriers combine both into one charge, some call detention per diem, and free time may be set by a tariff, a service contract, a negotiated arrangement or terminal rules. The first record to keep is therefore the document that set free time for that specific shipment.
Keep the customer-facing side too: the quote or contract that told your customer how much free time they had and how charges would be passed on. A gap between the free time a carrier grants and the free time promised to a customer is a frequent source of charges the forwarder cannot recover.
| Charge | Clock usually runs while | Start event to record | Stop event to record |
|---|---|---|---|
| Import demurrage | The container waits at the terminal after free time | Discharge and availability for pickup | Full out-gate from the terminal |
| Import detention | Carrier equipment is outside the terminal | Full out-gate | Empty return in-gate |
| Export demurrage | The container sits at the terminal before loading | Full in-gate | Loaded on the vessel |
| Export detention | Empty equipment is out for loading | Empty out-gate | Full return in-gate |
The five records every D&D dispute needs#
Every demurrage and detention dispute rests on the same five records, kept per container and linked to the booking, bill of lading and container number. Missing any one of them turns a sound argument into a negotiation.
Store the five records together, or at least make them joinable by container and bill of lading. Disputes are often filed by an operations coordinator, paid by accounts payable and rebilled to customers by sales, so each team holds a piece unless someone designs the file.
| Record | What it should contain | Where it usually lives |
|---|---|---|
| Free time terms | Free days, start rule, calendar or working days, exclusions and rates after free time | Service contract, tariff, booking confirmation, customer quote |
| Availability and return events | Discharge, holds, release, appointment availability, out-gate and empty return, each with a time stamp | Terminal portal, carrier tracking, trucker gate receipts, forwarding system milestones |
| Invoice as issued | Invoice number, billed party, container, dates covered, days charged, rate and issue date | Carrier or terminal billing portal, accounts payable inbox |
| Dispute as filed | Date submitted, grounds, evidence attached, contact and carrier reference | Dispute portal, email thread, forwarding system notes |
| Outcome | Upheld, reduced, waived or credited, with the date and any pass-through to the customer | Credit note, revised invoice, receivables and payables records |
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Availability events decide many disputes#
Availability events decide many demurrage disputes, because a charge for days when the container could not be collected is one of the most frequent grounds for challenge. The forwarder has to show what blocked the move and exactly when it cleared.
Terminal portals often show current status well and past status poorly. Capture evidence on the day, with the date and time of capture, and keep the trucker's gate receipts, failed appointment attempts and confirmations in the container's file.
- Vessel discharge and the time the container became available for pickup.
- Customs, freight and terminal holds, with placed and released times.
- Appointment availability: screenshots or exports showing no slots on the dates billed.
- Terminal closures, weather events and gate disruptions announced by the terminal or port.
- Chassis shortages where the provider or pool showed no equipment.
- Empty return restrictions: notices that the terminal or carrier would not accept empties.
What the FMC demurrage rule means for your records#
The Federal Maritime Commission's demurrage and detention billing rules, aimed at ocean common carriers and marine terminal operators, shape which records a forwarder should keep, because they may address who can be billed, what an invoice needs to show and how disputes are handled. Read the current rule text and agency guidance rather than relying on summaries, since interpretation develops through cases and guidance.
In practice, record the date each invoice arrived, whether it contained the information you expected, who it was addressed to, and when and how you disputed it. If you act for a customer as the billed party, keep the instructions and agency terms that show your role.
This is general information, not legal advice. Facts and contract terms decide whether a particular charge or invoice complies, so review specific disputes and your billing practices with counsel.
Code disputes so the history can be analyzed#
Dispute reason and outcome codes turn a pile of emails into a history that shows which terminals, carriers and lanes generate avoidable charges. Keep the code list short, controlled and applied at the moment of filing.
Record the outcome with the same discipline: upheld, reduced, waived or still open, and whether the charge was passed through to the customer. Outcomes are what show, over time, which arguments work.
| Dispute reason code | Evidence that supports it |
|---|---|
| Free time miscalculated | Contract or tariff terms, booking confirmation, a calendar of the days counted |
| Container not available | Hold history, terminal availability records, appointment screenshots |
| Terminal or port closure | Terminal notices, port advisories, gate logs |
| Empty return refused | Return restriction notices, trucker attempt records |
| Wrong billed party | Bill of lading parties, agency terms, customer instructions |
| Invoice error | Invoice as issued compared with gate and availability events |
Illustrative: a forwarder turns D&D email threads into a dispute log#
Illustrative: a fictional NVOCC and customs broker handles ocean imports for retail and industrial customers. Disputes lived in individual coordinators' inboxes, credits reached accounts payable without context, and nobody could say which charges had been passed through to customers.
The operations director created a dispute log keyed by bill of lading and container number inside the forwarding system, with the five records attached and reason and outcome codes required before closure. Coordinators began capturing appointment screenshots on the days slots were unavailable.
After a few review cycles, the log showed that unavailable appointments at one terminal drove most successful disputes, while free time errors on one carrier's contract kept recurring. The forwarder raised free time terms at contract renewal and rewrote its customer quotes to state how pass-through works.
Why dispute histories have value beyond recovery#
A complete D&D dispute history records charges, the events behind them, the reasoning used and the outcome, which makes it a clear example of exception handling in freight. Teams building invoice audit and logistics agents value records like these because each case pairs a document with evidence and a verdict.
SourceX handles such histories through the SourceX five-step transaction, starting with a metadata-only fit check. The rights step looks closely at service contract confidentiality, customer agreements and agency terms, and preparation removes customer, consignee and contact details before anything is approved for delivery.
Frequently asked questions
How long should a forwarder keep demurrage and detention records?
At least as long as your regulatory record-keeping duties, contract claim periods and customer audit rights require, which vary by role and agreement. Licensed forwarders and customs brokers have their own record rules. Set the period with counsel and apply it to the whole dispute file, not only the invoice.
Should D&D charges be passed through to the customer?
That depends on the customer agreement, the quote and your terms of service. Whatever the policy, record each pass-through decision against the original invoice and dispute, so a later credit from the carrier can be traced back to the customer who paid the charge.
What if the terminal portal no longer shows past availability?
Rebuild it from other sources: trucker appointment attempts and gate receipts, carrier tracking milestones, emails with the terminal, and port or terminal advisories. Going forward, capture availability evidence on the day it matters, with a time stamp, and attach it to the container's file.
Are lost disputes still worth recording?
Yes. An upheld charge with its evidence shows which arguments do not work and where free time terms need renegotiation. For analysis and for AI use, a history with both wins and losses is more informative than one that records only successful disputes.
Do importers need the same records as forwarders?
Largely, yes, because the billed party may be the importer, the consignee or the forwarder, depending on the bill of lading and the contracts. Importers that receive invoices directly should keep free time terms, availability evidence, invoices, disputes and outcomes linked in the same way.
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