What Is Demurrage Fees | Easiest Way To Calculate-Xiongda

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Demurrage fees is also refers to the failure to unload all the goods in the specified time, resulting in the ship to continue to berth in the harbor, so that the shipping agency to increase the cost of expenditure in the port and suffer the loss of the ship, by the charterer to the shipowner of the agreed amount paid.

For example, the charterer F and the lessor G entered into a voyage charter contract, by H sent “rose” ship on January 5, 2023 arrived in the port of Long Beach and ready for loading, if F failed to prepare the goods before the deadline, then F should be to the lessor G to pay demurrage.

 

demurrage fees

 

Classification of demurrage fees period

Limited demurrage period

In the contract by the parties to the ship demurrage period fixed time, in the limited period, if the ship occurs demurrage, the lessee in accordance with the contract demurrage rate paid to the ship lessor demurrage.

If the loading and unloading of goods is not completed by the expiration of the “limited period of demurrage”, or the ship continues to stay in the harbor due to the reasons of the lessee, the ship is called “demurrage ship“, for which the lessor of the ship can propose to the lessee for “demurrage loss” compensation. Loss of demurrage” compensation.

Non-restricted demurrage period

In the contract does not specify the length of time when the ship is demurrage, and the knowledge of the demurrage fees, so in principle, the ship’s demurrage time can be unlimited, there is no ship demurrage damages, the lessor of the ship can only be determined in accordance with the contract demurrage fees to require the lessee to pay demurrage.

Demurrage fees calculation method

There are roughly two ways to calculate demurrage:

Demurrage time is calculated continuously

The so-called continuous calculation means that even if it is not counted as the loading and unloading time according to the agreement, Sundays, holidays or the time when the cargo cannot be loaded and unloaded due to bad weather, it will still be counted as the demurrage time.

 

demurrage fees

 

Although there may be “calculated according to the total working time saved”, the demurrage does not take this into account. As long as the time is continuous, regardless of the specific day of the week, it will be included in the calculation of the demurrage time. middle.

By the same date

This calculation method is also called “discontinuous calculation”, that is, the demurrage time is calculated the same as the loading and unloading time. In practice, the former is more commonly used, and the parties can also reach a completely different agreement separately.

For example

Agreed daily demurrage fees payment of 10,000 RMB, the ship’s demurrage period of 5 days, and in the ship’s demurrage period after the expiration of the lessee is still unable to prepare for the loading and unloading of goods, to the lessor caused 30,000 RMB of actual losses.

At this time, although the actual loss is only 30,000 yuan, but according to the demurrage rate should be paid 50,000 RMB. Therefore, in this case, the actual lessee should pay 50,000 RMB instead of 30,000 RMB.

 

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