It means the loss which occurs because of expiration of the period agreed for loading or discharging the vessel, airplane, wagon or road vehicles according to contract and should be paid to the owners of these vehicles.
Also if the shipper fill up a place in warehouse or port more than permitted period, should pay the fine.



Importance of date of loading and discharging in demurrage:

When then vessel arrives and prepared for loading and discharging these dates are important (if the vessel arrives in port but is in quarantine these dates may be not very important ) also the vessel's owner should declare the preparation of vessel for loading to renter and the renter should follow this matter as well.

The delay is considered when the loading and discharging finish except in the cases which other conditions are mentioned in contract.

Demurrage will be considered even for holidays and Fridays .If delay has happened in port and hasn't been paid by renter, total amount will be mentioned in bill of lading in order to avoid any probable problem at the time of delivery.

Reasons and some justifications for demurrage

Demurrage is considered for some extra charges which vessels owner should pay because of stopping the vessel and also demurrage is a mean for making the renter to observe the terms mentioned in contract .Even there is a right for vessel's owner to keep the cargo till receiving the money. If the delay isn't renter's fault ,he won't be responsible for demurrage. Also its possible to add an article to contract according which the renter isn't responsible for paying demurrage.

The main reasons for paying demurrages :

1-compensation for the charges which owner or renter of vessel have paid.

2-guarantee for observing the contract in the case of any delay.

3-compentation of losses which caused by stopping and delay, encourage the owner or renter of vessel to observe the rules.

The factors which cause demurrage:

Delay in opening LC

When the cargo isn't prepared on time in the port

Accumulation of ports in discharging

Factors arising from the lake of mobilization and facilities at port like storage,

Factors arising from the lake of vehicles (truck-train)

Factors arising from damaging in equipments on the vessel and the lake of work force and also the lack of perfect management.

Effective factors in decreasing demurrage:
-Careful recognition of facilities, needs and lakes of ports
-Creation of balance between entrances of goods to country with current facilities
-Creation temporary storages goods in ports
-Mobilizing ports to necessary means and facilities, proportionate to capacity of entrance goods
-Expanding of landing means transportation (truck_ train)
-Expanding of suitable docks and harbors
-Discharging old ships from sea transportation
-Using of modern Ro-Ro vessels and lash vessels in the time of exigency in ports arising from accumulation of vessel
-Teaching supervisors in order to preparation and adjusting the output statement about the status of vessels and encouraging contractors by paying them dispatch charges and using experienced contractors.
Barging is one of the effective factors in decreasing demurrage

Barging is an effective factor in decreasing the waiting sequence of vessels and decreasing demurrages .For a country like Iran that has long shores, barging is an important opportunity .Easiness in working with barges and not needing various skills in has got many country's attention . Even in some countries which are experienced in sea and port affairs this system is being used and also in Iran there the possibility of using this system in small port, in the case of decreasing waiting sequence of vessels, this system is effective but there is also the problem of accumulation of goods in the shore and by using barges we only transfer the accumulation it means that we have transfer ed the accumulation of goods from the vessels to the shore and in the case of putrefied goods or the goods which gives up its virtues under the sun or in the open atmosphere it is more harmful than demurrage.
Barging plays an important role in discharging and loading. It makes the port affairs easier.

Because of its factors, the vessel can be discharged in the middle of sea and transfer the goods to the shore and even it can berth at little and not deep jetties.

Professor Cooper says:" in spite of huge improvements in the jetty constructions and
Modern ports barging is an economic factor that be intentioned by many countries in sea transportation. Even those countries which have modern jetties and ports consider the advantages of this system as they don't need any special skill and also a huge investment. Even some countries construct a mother port to support their other ports by barging.