Average Detention & Demurrage Fees (2025 Update) for Yard Management
In 2025 detention and demurrage costs continue to rise. This creates pressure on budgets, schedules, and driver satisfaction. So, it's critical for shippers and yard operations to understand these fees. Understanding how they are calculated and how to avoid them is equally important.
What Are Detention and Demurrage Fees?
Detention Fees
Detention fees are charged when cargo, trailers, or drivers are held outside of a terminal longer than the agreed free time. These fees typically range from $30 to $50 per hour, and in some cases they rise as high as $150 per hour. According to R+L Global Logistics, the cost of detention has increased 25–30% in the last two years.
Demurrage Fees
Demurrage fees are applied to cargo that has overstayed its time at a specific terminal or gate. In 2025, these charges range from $75 to $300 per day, per container.
Detention vs. demurrage
The difference is simple. Detention occurs outside the terminal, while demurrage occurs inside the terminal. Responsibility for these costs usually falls on the shipper or consignee. But liability depends on the specific carrier contract.
Example Calculation
- A truck held for three hours at $100 per hour will add $300 in detention costs.
- A container left four days past free time at $200 per day creates $800 in demurrage charges.
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Why Do Detention and Demurrage Happen?
These charges are often the result of common breakdowns in yard and supply chain processes:
- Gate congestion that slows check-in and check-out
- Documentation errors or missing paperwork
- Poor communication between shippers, carriers, and yard staff
- Inefficient dock scheduling and appointment management that cause bottlenecks
- Inadequate asset tracking or misplaced trailers within the yard
Why Detention and Demurrage Costs Matter
The impact extends well beyond late fees:
- Crash risk: Prolonged wait times increase crash likelihood by 6.2% for every 15 minutes of dwell (FMCSA/OIG).
- Lost capacity: Drivers and equipment tied up in dwell cannot move freight.
- Strained relationships: Delays erode trust between carriers and shippers.
- Compliance challenges: Detention increases the risk of Hours-of-Service violations.
- Driver satisfaction: Repeated delays contribute to frustration and turnover.
- Sustainability concerns: Idle trucks waste fuel and increase emissions.
These costs can add up quickly, especially across high-volume yards.
The Rising Cost of Detention & Demurrage
Detention and demurrage aren’t just “extra charges”. They are persistent cost drains. Studies confirm the scale of the issue:
- 39% of deliveries experience detention.
- 59% of drivers faced detention within the last two weeks.
- 72% of drivers report waiting more than two hours each week.
- 10% of all stops involve detention, with an average dwell time of 3.4 hours.
- 3-to-5-hour waits are common in busy yards.
These delays inflate budgets, slow turns, and weaken efficiency and satisfaction.
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Ways to Cut Detention and Demurrage Costs with a YMS
Best practices are important, but technology makes them practical at scale. A modern Yard Management System (YMS) automates many of the steps needed to avoid detention and demurrage.
Empowering shippers and yard operators can take proactive steps to reduce exposure by:
- Verifying documentation before arrival by seamlessly connecting with TMS and WMS systems. The enables your team to confirm load details and avoid clerical delays.
- Pre-scheduling dock appointments with a dock management tool. A good system will let carriers book advance, balance dock workloads, and reduce bottlenecks.
- Checking trailer and container status in real time using reports and dashboards. This helps your team track locations, dwell times, and detention risk.
- Communicating delays in real time with automated notifications. This keeps carriers and drivers updated on schedule changes or yard conditions.
- Tracking dwell time accurately with automatic timestamps for full visibility into detention exposure. Then your team can see all arrivals, moves, and departures.
Discover more action items in our 5 Steps to Reduce Detention and Demurrage Costs with a YMS white paper.
With YardView’s YMS, customers have seen:
- Up to 95% reduction in detention and demurrage fees. This helps protect you budget and profit margins.
- 50% faster spotting throughout the yard. This cuts the time drivers spend waiting for instructions or trailer moves.
- 100% real-time visibility across the entire yard. This includes all trailers, loads, empties, damaged units, dwell times, and detention risk.
- Seamless integration with TMS, WMS, and ERP systems. This results in better end-to-end supply chain control.
ROI That Speaks for Itself
After implementing YardView’s YMS, one global shipper reduced fees by millions annually. Reducing dwell time also improves driver satisfaction, safety compliance, and carrier relationships.
In today’s environment detention can reach $150 an hour and demurrage can climb to $300 per day. So, every hour saved translates into meaningful cost avoidance and improved efficiency.
Ready to Reduce Detention & Demurrage Costs?
Detention and demurrage costs are rising year after year. Don't let these fees define your operation. YardView helps shippers and yard operators gain real-time visibility and faster yard turns. Ultimately lowering costs, improving driver satisfaction, and streamlining compliance.
To discover how much you can save, schedule a demo today.
