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First things first â What is demurrage? The basic definition of demurrage is simple â a fee leveraged on cargo that stays at a terminal too long. Port officials (as well as railroad and airport authorities) all have the ability to enforce demurrage charges. But this definition is deceptively straightforward.
The reverse of demurrage is despatch. If the charterer requires the use of the vessel for less time than the laytime allowed, the charter party may require the shipowner to pay despatch for the time saved. The term demurrage has been incorrectly extended to use in the hire or rental of assets other than ships.he reverse of demurrage is despatch. If the charterer requires the use of the vessel for less time than the laytime allowed, the charter party may require the shipowner to pay despatch for the time saved. The term demurrage has been incorrectly extended to use in the hire or rental of assets other than ships.