What is a demurrage charge in container shipping?

A demurrage charge is a charge that the merchant pays for the use of the container within the terminal beyond the free time period. Containers are owned or leased by shipping lines. The cost for using the containers are included in the freigh charge, but because shipping lines need their containers returned for their other customers, a charge is applied when the container is not returned within the free period. More information about demurrage charges can be found at the link below.

"Demurrage and detention charges in container shipping." December 12, 2018. UNCTAD. Retrieved from: https://unctad.org/news/demurrage-and-detention-charges-container-shipping

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