Demurrage is the charge a charterer owes a shipowner for keeping a vessel at port beyond the laytime allowed in the charter party for loading or unloading cargo, calculated simply as laytime used beyond laytime allowed. The word descends from the Old French demeurage, from demeurer, to linger or tarry, and the charge exists to give the shipowner back the value of a vessel idle at berth that it would otherwise be earning at sea. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/
Facts
Core ConcernThe charge a charterer owes for keeping a ship at port past its allotted loading time 1 FAQs
What is demurrage and why does a shipowner charge it?
Demurrage is what a charterer owes a shipowner for keeping a vessel at port beyond the agreed laytime for loading or unloading cargo.
Demurrage is the charge a charterer owes a shipowner for keeping a vessel at port beyond the laytime allowed in the charter party for loading or unloading cargo: laytime consumed less laytime allocated. The word descends from the Old French demeurage, from demeurer, to linger or tarry, and the charge exists to give the shipowner back the value of a vessel idle at berth that it would otherwise be earning at sea. The inverse of demurrage is despatch: if the charterer requires the use of the vessel for less time than the laytime allowed, the charter party may require the shipowner to pay despatch for the time saved.
Sources
1. Wikipedia: Demurrage
WikipediaShipping section
Demurrage is laytime consumed less laytime allocated (if any).
Lead section, despatch clause
The inverse of demurrage is despatch. If the charterer requires the use of the vessel for less time than the laytime allowed, the charterparty may require the shipowner to pay despatch for the time saved.
- Part Of: Maritime Transport
Part Of: Containerization, Container haulage section
the industry refers to this container usage beyond the time allowed as Container Demurrage.
In Group: Ship Operations and Chartering Concepts, Lead sentence
"Demurrage" in vessel chartering is the amount of liquidated damages owed by a charterer to a shipowner when the charterer remained in possession of the vessel for the purpose of loading and unloading (laytime) beyond the time allowed by contract.
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