Definition, Meaning & Synonyms

demurrage

Noun

/dɪˈmɜːrɪdʒ/

Definition

Demurrage refers to the charge incurred when a ship, freight car, or truck is held up beyond the agreed-upon loading or unloading time.

Examples

The shipping company charged demurrage because the container was not picked up on time.
After failing to unload the goods quickly, they faced significant demurrage fees.
The contract specified a demurrage rate for any delays beyond the deadline.

Meaning

It is a penalty or a fee that is imposed on a shipment when the cargo is not loaded or unloaded within the specified timeframe, leading to additional costs.