Maritime glossary
Demurrage
A daily fee paid by the charterer to the owner when cargo operations exceed the agreed laytime.
Definition
Demurrage is liquidated damages payable per running day (or pro-rata for part of a day) when a vessel is detained beyond the laytime allowed in the charter party. It compensates the owner for the loss of the vessel’s earning capacity. Demurrage rates are agreed at fixing — typically a flat daily amount or a percentage of the daily charter rate — and demurrage claims are one of the most contested categories in shipping disputes.
Worked example
A charter party allows 72 hours laytime to load. The vessel actually takes 96 hours. The 24 hours of demurrage runs at the agreed rate (say USD 25,000/day).
How Vessel Hunter uses Demurrage
Vessel Hunter does not handle freight commercials directly, but accurate ETA forecasts feed into demurrage modelling — knowing when the ship really arrives is the foundation of laytime accounting.
Related terms
- Laytime
The time agreed in the charter party for cargo loading or discharge — once exceeded, demurrage starts.
- Charter Party
The contract under which a vessel is hired to a charterer — voyage, time, or bareboat.
- ETAEstimated Time of Arrival
The forecast time at which a vessel is expected to arrive at its next port or waypoint.
The bigger picture
Demurrage is one piece of the commercial maritime picture Vessel Hunter pulls together for shipyards, port agents, and service providers. Every vessel record bundles AIS, ownership, inspections, dry-dock history, casualty record, classification status, and a verified contact for the operator decision-maker behind the ship — so the team that reaches out first wins the work.
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