What is Demurrage?

Demurrage is a charge imposed on the Consignee by shipping lines when containers are not picked up on time. After it reaches the port, you are responsible for a demurrage fee if your shipment stays at the port too long, and you must pay it before picking up your goods.

The fee is part of port regulations to free up space for other containers. The number of free days before the demurrage fee is applied varies by port and shipping company. Usually between a few days to a week.           

Tip to avoid demurrage fees: Work with a reliable, experienced, and proactive forwarder. This prevents delays caused by mis-documentation, late payment, and extra storage charges.

Demurrage fees (imposed when containers are returned late) encourage the importer and exporter to pick up, unload, and return containers. This ensures a quicker turnaround of container stock for reuse.

a. Situations covered by the force majeure clause    

i. Force majeure is a clause that is included in contracts to remove liability for unforeseeable and unavoidable catastrophes, such as natural disasters or man-made calamities.

b. When the carrier is responsible for the delay due to negligence.

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