A charge payable by the charterer to the shipowner when a vessel is detained in port beyond the agreed laytime allowed for loading or discharging cargo. Demurrage compensates the owner for the lost earning time and is calculated at a daily or hourly rate specified in the charter party.
Category: Cargo & Trade
On The Maritime
The desks where this concept is measured.
In the Glossary
Demurrage
A daily penalty the charterer pays the owner for using more than the agreed laytime to load or discharge.
Read the full explanation in the GlossaryRelated terms
More in Cargo & Trade
CustomsThe government authority responsible for controlling the import and export of goods at ports, collecting duties and taxes, and enforcing trade regulations.Dead FreightA charge payable by the charterer for the unused cargo space when the agreed quantity of cargo is not provided for loading.Deadweight TonnageThe total weight a vessel can carry, including cargo, fuel, fresh water, ballast water, provisions, passengers, and crew, measured in metric tonnes.Dry DockingThe process of placing a vessel in a dry dock for inspection, maintenance, repair, and painting of the underwater hull.FEUForty-foot Equivalent Unit, a measure of container capacity equal to two TEU, based on the standard 40-foot intermodal container.FOBFree On Board, an Incoterm under which the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment.
Back to DictionaryEntry updated May 2026