what is demurrage all about?
please explain me in detail...
what is demurrage all about?
please explain me in detail...
1. Penalty for exceeding free time (usually 72 hours) allowed for taking delivery of a shipment from the shippingor transporting company's warehouse.
2. Penalty assessed against a consignor, consignee, or other such party responsible for delay in loading orunloading of a shipping vessel or for undue detention(usually over 48 hours) of the transportation equipment. Also called detention charge.
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.
it is like a charges paid to Port trustauthority for not clear the imported goods within the specified time...generally 3 days...
to add to above, even after stipulated time, and giving notice to the importer, if the goods are not cleared, the custom authority can auction the goods, and recover its duty...
thanx for info
THANX TO ALL FOR NICE INFORMATION..........
T R SOOD & CO
New Delhi
CA Inter
View Details
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
View Details
CAclubindia
