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Get to grips with logistics terms

Glossary of logistics terms

Demurrage, THC, FCL, Incoterms — briefly and in plain language. So that invoices and emails from your forwarder read without googling.

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Reference

Demurrage, detention and storage: three different invoices

The most expensive confusion in logistics. These are not synonyms and not one payment under different names — they are issued by different parties, for different things, and they can accrue on the same container at the same time.

DemurrageDetentionStorage
What forthe container stands in port beyond the free daysthe container is outside the port, at your warehousethe cargo/container takes up space at the terminal
Who issues itthe shipping linethe shipping linethe terminal or the port
Where it is countedon the territory of the port or terminalfrom leaving the port until the empty is returnedon the territory of the terminal
What stops the chargetaking the container out of the portreturning the empty containertaking it out of the terminal
Invoice currencyusually USDusually USDusually hryvnia
Can they run at the same timeyes, together with storageno — after leaving the portyes, together with demurrage

Swipe the table sideways →

The key point: demurrage and storage can tick at the same time — from the line and from the terminal separately. That is exactly why a day of delay at customs costs more than it looks from one invoice.

FAQ

How is demurrage different from detention?

Demurrage is the charge for keeping the container in the port or at the terminal beyond the free days. Detention is the charge for holding the container outside the port: when it has left, stands at your place for unloading and has not been returned empty to the line. Demurrage is counted until it leaves the port, detention — after.

What is free time?

The number of free days of using the container for which the line charges neither demurrage nor detention. Free time for demurrage and for detention are two different counters, and the number of days depends on the line, the direction, the container type and the terms of the specific contract.

How is FOB different from EXW?

EXW — the buyer collects the goods from the seller’s warehouse and from there bears all costs and risks: export clearance, delivery to the port, loading. It is the minimum of seller obligations. FOB — the seller is responsible for the goods up to loading onto the vessel, export clearance included; from there the costs and risks pass to the buyer.

Which edition of Incoterms is in force?

Incoterms® 2020 — 11 rules. The old abbreviation DAT has been replaced by DPU (Delivered at Place Unloaded). If your contract says DAT, you are referring to an edition that is no longer in force.

How is FCL different from LCL?

FCL — a full container load from one shipper: you rent the whole container. LCL — groupage cargo: you pay only for your part, the rest of the volume is shared by other shippers, and the cargo passes through a consolidation warehouse.

Updated: 27 July 2026

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