Definition
In a voyage charter, demurrage is an agreed sum — usually a daily rate pro rata — for delay after laytime has expired, for which the owner is not responsible. Laytime exceptions such as weather do not apply to demurrage unless the charter says so: "once on demurrage, always on demurrage". If the ship completes early, the owner pays despatch, often at half the demurrage rate, on "all time saved" or "all working time saved" as defined.[1]
Most demurrage claims are lost on paperwork rather than merits. Many charters carry a time bar — sometimes two, one to notify and one to present the documented claim. Steamship Mutual's guidance counts the discharge date as day zero, in the discharge port's time zone, and lists the documents normally required: NOR, statement of facts, port log, timesheet, letters of protest and pumping logs.[2]
For containers the word means something else: there, demurrage is the carrier's charge for a box kept in the terminal beyond free time — see demurrage and detention.
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Sources
- [1] BIMCO — Laytime Definitions for Charter Parties 2013 (PDF) — https://bimco.org/media/qy2neqim/laytime-definitions-for-charter-parties-2013-v2.pdf
- [2] Steamship Mutual — Demurrage time bars: FAQs — https://www.steamshipmutual.com/publications/articles/demurrage-time-bars-faqs
A working definition for buyers, not legal advice — the contract, the convention text and your club or class have the last word.