What is Vessel demurrage?

Vessel demurrage refers to the charges that are incurred when a vessel is delayed at a port beyond the agreed-upon time for loading or unloading cargo. These charges are typically levied on the party responsible for the delay, such as the cargo owner or the shipping company. The purpose of vessel demurrage is to compensate the vessel owner for the loss of time and revenue caused by the delay, as well as to incentivize timely cargo handling at ports.