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Demurrage
Last Updated: Jun 6, 2019
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Demurrage refers to the charges that the charterer pays to the ship owner for its delayed operations of loading/unloading. Officially, demurrage is a form of liquidated damages for breaching the laytime as a it is stated in the governing contract (the charter party). The demurrage sometimes causes a loss to the seller as it increases cost of the total freight. Demurrage can hurt recovery when lending on in-transit inventory.