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Demurrage
| Admiralty law |
|---|
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| History |
| Features |
| Contract of carriage/Charterparty |
| Parties |
| Judiciaries |
| International conventions |
| International organizations |
"Demurrage" /dɪˈmʌrɪdʒ/[1] in vessel chartering is the period when the charterer remained in possession of the vessel after the period normally allowed to load and unload cargo (laytime).[2] By extension, demurrage refers to the charges that the charterer pays to the ship owner for its delayed operations of loading/unloading.[3] Officially, demurrage is a form of liquidated damages for breaching the laytime as it is stated in the governing contract (the charterparty). The demurrage sometimes causes a loss to the seller as it increases cost of the total freight.[3]
The inverse of demurrage is despatch. If the charterer requires the use of the vessel for less time than the laytime allowed, the charterparty may require the shipowner to pay despatch for the time saved.
- ^ from Old French demeurage, from demeurer – to linger, tarry
- ^ "DEMURRAGE Definition & Legal Meaning". Black's Law Dictionary (2nd ed.). 9 November 2011. Retrieved March 10, 2023.
- ^ a b Maritime Knowhow website: GENCON Clause 7 Archived 2011-07-14 at the Wayback Machine
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