What is demourrage?

Demurrage is a charge incurred when cargo is held in a shipping container beyond the agreed-upon free time period. It serves as a financial incentive for shippers to pick up or unload their cargo promptly, thereby freeing up shipping equipment for other uses. The fee is typically calculated on a daily basis and can accumulate rapidly, impacting overall shipping costs. Demurrage is a common practice in the shipping and freight industry to manage delays and optimize logistics.