Demurrage
A penalty charge assessed when a shipping container, railcar, or trailer is not loaded or unloaded within the allotted free time at a port, rail terminal, or warehouse. In ocean freight, demurrage applies to containers sitting at the port terminal beyond the free days. It differs from detention, which applies to equipment held at the shipper's or receiver's location. Demurrage charges can escalate quickly, often increasing per day the longer the equipment is held.
Detailed Explanation
A penalty charge assessed when a shipping container, railcar, or trailer is not loaded or unloaded within the allotted free time at a port, rail terminal, or warehouse. In ocean freight, demurrage applies to containers sitting at the port terminal beyond the free days. It differs from detention, which applies to equipment held at the shipper's or receiver's location. Demurrage charges can escalate quickly, often increasing per day the longer the equipment is held.
Example
An importer's container sits at the Port of Savannah for 8 days because the warehouse is not ready to receive it. With 4 free days, the importer pays 4 days of demurrage at $150/day ($600).
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