Per Diem (Container Shipping)

What Is Per Diem in Container Shipping?

Per diem, in a shipping context, refers to the daily fee charged when a container is kept beyond its allotted free time, either sitting at the terminal (demurrage) or in use outside the terminal (detention).

How Does Per Diem Work?

Once a container's free time expires, the carrier or terminal begins charging a fixed amount per container, per day, until the container is picked up, unloaded, or returned empty. Per diem rates typically increase the longer a container is held, since carriers structure charges to escalate and discourage extended delays.

Per Diem vs Demurrage vs Detention

Per diem is the daily charge itself; demurrage and detention are the two contexts in which per diem is applied, demurrage for containers sitting at the terminal past free time, and detention for containers held outside the terminal past free time.

Why Per Diem Matters

Per diem charges can escalate quickly and add significant, avoidable cost to a shipment if containers aren't tracked and moved within their free time window. Proactively monitoring free time deadlines across all active containers is the most effective way to avoid per diem exposure.