CA Final Student & Audit Assitant
2051 Points
Joined February 2010
Demurrage refers to the charges that the charterer pays to the shipowner for its extra use of the vessel.[1] Officially, demurrage is a form of liquidated damages for breaching the laytime set out in the governing contract (the charter party).[2]
The reverse of demurrage is despatch. If the charterer requires the use of the vessel for less time than the laytime allowed, the charter partymay require the shipowner to pay despatch for the time saved.
For further details follow the bellow link:
Source : https://en.wikipedia.org/wiki/Demurrage
Charterer means the person who have hired the vessel.