What is Demurrage?

Explain Demurrage.

Demurrage is a penalty payable to the shipping line because for shippers or consignees failing to load or discharge the ship within agreed time. Demurrage charges can vary from country to country as well as by carrier. The demurrages may be caused due to delay in documentations, inspections of containers by the authorities which may take longer than anticipated, or may the consignees doesn’t have enough finances inorder to clear the container in time etc. Sometimes if not controlled, demurrage charges can soon overtake the price of goods which will further force the consignee to abandon the cargo. Proper planning and actions is important for avoiding demurrage charges.

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