Demurrage
A daily penalty the charterer pays the owner for using more than the agreed laytime to load or discharge.
Demurrage is liquidated damages paid by the charterer to the owner when cargo operations run beyond the allowed laytime. It is set as a daily rate in the charter party and runs continuously once laytime is exhausted — the principle "once on demurrage, always on demurrage" means many laytime exceptions stop applying.
Demurrage is one of the most common sources of post-fixture dispute, hinging on whether laytime was correctly counted and whether delays fall on owner or charterer.
On TheMaritime
Also known as: demurrage rate, on demurrage.
Related terms
Laytime
The time allowed under the charter party for the charterer to load and discharge the cargo without extra payment.
Despatch
A payment back to the charterer for completing cargo operations in less than the allowed laytime — the mirror of demurrage.
Notice of ReadinessNOR
The formal notice that a ship has arrived and is ready to load or discharge, which starts the laytime clock.
Charter PartyC/P
The contract between shipowner and charterer setting out the terms of hiring a vessel or carrying a cargo.
Plain-English reference definition — our own explanation of a standard shipping concept, not a licensed source or legal advice. See the full glossary or the broader maritime dictionary.
Last reviewed: June 2026.