demurrage
C1/C2Formal, Technical, Legal, Business
Definition
Meaning
A charge payable to the owner of a ship or cargo for failure to load or unload within the agreed time.
In broader logistics and finance, compensation paid for the delayed use of transport assets (ships, railcars, containers) or, historically, for the detention of currency (as in coinage demurrage).
Linguistics
Semantic Notes
Primarily a count noun referring to the charge itself (e.g., 'incur demurrage'), but can also function as a non-count noun referring to the state of delay (e.g., 'in demurrage'). It is a specialized term with precise legal and contractual implications.
Dialectal Variation
British vs American Usage
Differences
No significant difference in core meaning. Spelling is consistent. Usage context is identical in shipping, logistics, and finance.
Connotations
Neutral, purely transactional and contractual. Carries no additional cultural connotation in either variety.
Frequency
Equally rare in general discourse but standard and expected within the specialized fields of shipping, international trade, and logistics in both regions.
Vocabulary
Collocations
Grammar
Valency Patterns
incur + demurragebe liable for + demurragepay + demurrage + (of amount)demurrage + accrue + at + rateVocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “on demurrage”
- “in demurrage”
Usage
Context Usage
Business
Critical in contracts for chartering ships, leasing containers, and international trade invoices.
Academic
Used in papers on maritime law, transport economics, and historical monetary systems.
Everyday
Virtually never used in casual conversation.
Technical
Precisely defined term in Bills of Lading, charter parties, and logistics software.
Examples
By Part of Speech
verb
British English
- The vessel was demurraged for three days due to port congestion.
- Charterers will demurrage the ship if unloading is not completed in time.
American English
- The railcar was demurraged at the yard, accruing daily fees.
- The contract allows the carrier to demurrage the container after the free time expires.
adjective
British English
- The demurrage invoice was issued promptly.
- They disputed the demurrage claim.
American English
- The demurrage rate is stated in the tariff schedule.
- We received a demurrage notice from the shipping line.
Examples
By CEFR Level
- The company had to pay a lot of money because the ship was late.
- If the containers are not collected within five days, demurrage charges will apply.
- The invoice included a substantial sum for port demurrage.
- The charter party stipulated a demurrage rate of $15,000 per day, pro rata, for any time used in excess of the agreed laytime.
- To avoid accruing demurrage, the importer arranged for immediate customs clearance.
Learning
Memory Aids
Mnemonic
Think: DE-MURR-age = DELAY MURRAY (a ship captain). Captain Murray's ship is delayed, so he must pay a DEMURRAGE charge.
Conceptual Metaphor
TIME IS MONEY (literally, in this case). Detention of an asset translates directly to a financial penalty.
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid confusing with 'demurazh' (демюраж) – a false friend not used in Russian logistics. The correct Russian terms are 'демередж' (demedzh) for shipping or 'плата за простой' (plata za prostoy).
Common Mistakes
- Using it as a verb (e.g., 'The cargo demurraged'). Correct: 'The cargo was placed on demurrage.'
- Confusing 'demurrage' (for delay) with 'dispatch' (a bonus for early completion).
Practice
Quiz
What is the primary context for the term 'demurrage'?
FAQ
Frequently Asked Questions
No. While both are penalties for delay, demurrage specifically concerns the detention of physical assets (ships, containers), not the late payment of money.
It depends on the contract (e.g., charter party, bill of lading). Usually, the party causing the delay (e.g., the charterer, consignee, or shipper) is liable to pay demurrage to the asset owner (e.g., shipowner, carrier).
Dispatch (or despatch) money. This is a bonus paid by the shipowner to the charterer for completing loading/unloading faster than the agreed 'laytime'.
Yes, though less commonly. It is used in rail freight for delayed railcars. Historically, it referred to a cost for holding currency. In logistics, it's standard for shipping containers.