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Advanced Formal IVT

Demurrage

Pronunciation: deh-MUR-ij

A charge levied on a shipper or consignee for detaining a carrier's container or vessel beyond the agreed free period at a port or terminal.

Full Definition

Demurrage is a penalty fee charged when import containers are not picked up from a port or container yard within the carrier-allocated free days. It compensates the carrier for the loss of use of their equipment. Editors must distinguish demurrage from detention, which applies when the container has been removed from the terminal but is not returned to the carrier within the free period. Both charges appear together in logistics invoices, and the two terms are frequently confused or used interchangeably in error. Demurrage is a mass noun and is not pluralised.

Usage

Usage note: Mass noun; do not pluralise. Strictly distinct from 'detention': demurrage applies at the terminal; detention applies once the container leaves the terminal.

In Context

  • "The importer incurred significant demurrage after customs clearance was delayed by missing documentation." — Import cost reconciliation report
  • "Editors must not use 'demurrage' and 'detention' interchangeably; they refer to charges at different stages of container use." — Logistics contract proofreading note

Also known as

port storage charges container demurrage

Don't confuse with

detention port storage fees per diem charges

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