Demurrage

Category: Port Charges

Definition (plain English)

A charge for cargo or containers remaining at the terminal after the allowed free-time period expires.

Why it matters commercially

Demurrage can rise daily during customs holds, document errors, payment delays, or delivery bottlenecks, turning a profitable shipment into a loss.

Example

A missing certificate delayed customs release by four days and triggered demurrage before the container could leave the terminal.

Common mistake

Treating demurrage as unavoidable freight noise instead of assigning an owner for document readiness, broker pre-clearance, last free day, and pickup timing.

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