Demurrage is a charge levied by a shipping line or terminal when a loaded container remains at the port beyond the contractually allowed free time, and it escalates quickly for reefer units because plug-in power is billed separately.
In trade practice
Demurrage begins once the free-time period expires and continues until the container leaves the terminal. For reefer containers carrying frozen fruit or vegetables, delays caused by incomplete customs documentation or border inspection holds are the most common triggers. Buyers and sellers should agree in the contract which party bears demurrage risk and under which Incoterms rule. Submitting a complete customs document set before vessel arrival is the most effective way to avoid the charge.
In a specification
Sales contracts and logistics agreements should state the free-time allowance, which party is liable for demurrage beyond that period, and any cap on liability.