de
mu
rrage
Plural
demurrages
1
detention of a ship or freight car or other cargo beyond its scheduled time of departure
2
a charge levied on the detention of a vessel, container, or cargo beyond the allotted time for loading or unloading at a port
Demurrage is a fee charged for the delayed use of equipment, such as a shipping container, or for holding goods beyond a specified time. It is commonly used in transportation and logistics when a shipment or vehicle is kept longer than agreed upon, often due to delays in unloading or other reasons. The purpose of demurrage is to encourage prompt return of equipment and ensure that goods move through the supply chain efficiently. This fee helps compensate for the extra time and costs involved in the delay.
- The shipping company incurred demurrage fees due to delays in unloading the cargo from the vessel.
- The importer was frustrated by the unexpected demurrage charges resulting from delays in clearing customs.
- To avoid demurrage costs, the logistics manager ensured efficient coordination between the warehouse and transportation teams.
- The port authority implemented demurrage penalties to incentivize prompt loading and unloading of vessels.
- Despite the efforts to minimize delays, the shipping company occasionally faced demurrage charges when unforeseen circumstances caused disruptions in their operations.