Tier 2 · Supply Chain Terms

Demurrage Calculation

Demurrage is the fee charged when a container remains at a port or terminal beyond the allotted free time period (typically 3-5 days at US ports), calculated per container per day at rates that escalate with duration.

Why It Matters

Demurrage costs have escalated dramatically: rates at major US ports range from $150-$350 per container per day, escalating to $500+ after extended holds. A single container delayed 10 days beyond free time can incur $3,000-$5,000 in demurrage. For importers with hundreds of containers monthly, annual demurrage exposure runs into the millions.

The FourKites Perspective

The FourKites Graph provides real-time port dwell intelligence: how long are containers actually sitting at each port? Is current dwell above or below the 30-day average? The system calculates demurrage exposure for every container in queue or in transit, projected against port-specific free time windows and published rate schedules. When port congestion builds, the system alerts before demurrage begins accruing, giving time for expedited pickup or chassis procurement.

Frequently Asked Questions

What is demurrage calculation?

Demurrage is the fee charged when a container remains at a port or terminal beyond the allotted free time period (typically 3-5 days at US ports), calculated per container per day at rates that escalate with duration.

How does AI change demurrage calculation management?

AI transforms demurrage calculation from a reactive metric measured after the fact into a proactive capability predicted and optimized in real time. AI agents monitor data continuously, detect anomalies before they become problems, and take autonomous action using network intelligence from the FourKites Graph, which aggregates cross-company patterns from 882 enterprise shippers.

How does FourKites handle demurrage calculation?

The FourKites Graph provides real-time port dwell intelligence: how long are containers actually sitting at each port? Is current dwell above or below the 30-day average? The system calculates demurrage exposure for every container in queue or in transit, projected against port-specific free time windows and published rate schedules. When port congestion builds, the system alerts before demurrage begins accruing, giving time for expedited pickup or chassis procurement.

See how this concept powers autonomous operations.