Tier 2 · Supply Chain Terms

Detention and Demurrage

Detention is the fee charged when a truck or trailer is held at a facility beyond the contractual free time window (typically 2 hours for trucks). Demurrage is the analogous fee for ocean containers held at a port or terminal beyond free time (typically 3-5 days). Together, they represent one of the largest avoidable costs in supply chain operations.

Why It Matters

US shippers paid an estimated $3.4 billion in detention and demurrage charges in 2024. For individual companies, annual exposure ranges from $500K to $10M+. The charges are often disputed but rarely resolved with data because neither party has objective, timestamped evidence of actual facility events. Detention disputes are among the most contentious issues in shipper-carrier relationships.

The FourKites Perspective

The FourKites Facility Twin provides objective, timestamped detention evidence: AutoGate captures precise gate check-in and check-out times, the appointment system records scheduled windows, and the Shipment Twin shows actual carrier arrival times. When a carrier invoices for 6 hours of detention, the Facility Twin shows whether the truck actually waited 6 hours or 3. The Graph provides detention benchmarks by facility type so companies can identify where their detention spending is above the network norm. Alan reduces detention at the source by dynamically rescheduling appointments based on live ETAs.

Frequently Asked Questions

What is detention and demurrage?

Detention is the fee charged when a truck or trailer is held at a facility beyond the contractual free time window (typically 2 hours for trucks). Demurrage is the analogous fee for ocean containers held at a port or terminal beyond free time (typically 3-5 days). Together, they represent one of the largest avoidable costs in supply chain operations.

How does AI change detention and demurrage management?

AI transforms detention and demurrage 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 detention and demurrage?

The FourKites Facility Twin provides objective, timestamped detention evidence: AutoGate captures precise gate check-in and check-out times, the appointment system records scheduled windows, and the Shipment Twin shows actual carrier arrival times. When a carrier invoices for 6 hours of detention, the Facility Twin shows whether the truck actually waited 6 hours or 3. The Graph provides detention benchmarks by facility type so companies can identify where their detention spending is above the network norm. Alan reduces detention at the source by dynamically rescheduling appointments based on live ETAs.

See how this concept powers autonomous operations.