Demurrage refers to the charges incurred when cargo is held at a port or terminal beyond the allowed free time for unloading or pick-up. These fees are imposed by the shipping line or port operator to compensate for the additional use of space and resources. Demurrage is typically calculated on a daily basis and can increase over time if the cargo is not moved promptly. In shipping, managing demurrage is crucial to avoid unnecessary costs, and it encourages businesses to clear cargo within the specified time to maintain efficiency in the supply chain.
See Detention Charges in Logistics.