Ship Demurrage
Ship demurrage is a fee charged when the loading or unloading of a vessel takes longer than the time allowed under the charter party agreement. The agreed time is known as laytime. When operations exceed this period, demurrage becomes payable. It compensates the vessel owner for the delay.
Demurrage can occur due to port congestion, slow cargo handling, weather disruptions, or documentation issues. Even small delays can add up, especially at busy ports. The charges are typically calculated on a daily or hourly basis. This makes time management critical during vessel operations.
The responsibility for paying demurrage depends on the terms of the charter party. It may fall on the charterer, shipper, or receiver, depending on who controls loading or discharge. Clear contract terms help avoid disputes. Proper planning helps reduce exposure to these costs.
Overall, ship demurrage encourages efficient port operations and timely cargo handling. It protects vessel schedules and availability. It also highlights the cost impact of delays. Managing laytime effectively helps keep shipping operations on track.
Frequently Asked Questions about Ship Demurrage
Clear answers to the most common questions people have when learning about Ship Demurrage.
It is charged when loading or unloading takes longer than the laytime agreed in the charter party.
Demurrage is typically charged at a fixed rate per day or per hour, as stated in the charter agreement.
Yes. Good planning, timely documentation, and efficient cargo handling help prevent delays and reduce demurrage risk.