Shipping & logisticsdemurrage
Demurrage
The penalty paid by the charterer when loading/discharging takes longer than allowed laytime.
Demurrage is the penalty the charterer pays to the shipowner when loading or discharging exceeds the allowed laytime. Rates are agreed in the charterparty (typically USD/day).
Demurrage costs flow through the SPA back to buyer or seller depending on who holds the vessel risk in the delivery basis (FOB = buyer, CFR/CIF = seller).
Related: Laytime, Charterparty.
Frequently asked
- What does Demurrage mean in oil and commodity trading?
- The penalty paid by the charterer when loading/discharging takes longer than allowed laytime.
- How do I check a counterparty that uses Demurrage in a deal?
- The term itself is not enough to clear or condemn a deal. What matters is the counterparty behind the pitch. Screen that name for free against OilFlow's first-party fraud-cluster corpus in seconds, and confirm identity documents and banking details independently before you transact.
See also
Seen this term in a live pitch?
These terms show up in real deal pitches — some legitimate, some not. The free check screens the counterparty behind the pitch against OilFlow's first-party-investigated fraud-cluster corpus in seconds. It queries no sanctions list.
Is the offer in your inbox real?
A written read within three business days: the broker-scam cluster corpus, a cached US sanctions pre-screen and the 235-jurisdiction tradability matrix. Not the full eight-list screen, and PEP is not screened. No account, nothing to buy.