Definition
Demurrage is a charge imposed on the consignee for the delay in unloading the goods from a road freight vehicle. It is a common practice in the European Union (EU) for road freight companies to charge demurrage fees to compensate for the time and resources lost due to delayed unloading.
Reasons for demurrage
There are various reasons why demurrage may be charged by road freight companies in the EU:
- Unplanned delays: These are delays that occur due to unforeseen circumstances such as traffic, accidents, or road closures. These delays can result in the vehicle being held up for a longer period of time, leading to demurrage charges.
- Delayed unloading: If the consignee is unable to unload the goods within the agreed time frame, it can cause delays for the road freight company. This can result in additional costs for the company, which are passed on to the consignee in the form of demurrage fees.
- Inadequate facilities: If the consignee does not have adequate facilities or personnel to unload the goods efficiently, it can cause delays for the road freight company. This can result in demurrage charges being imposed.
Calculation of demurrage charges
The demurrage charges for road freight are typically calculated based on the number of hours or days that the vehicle is held up at the consignee’s premises. The specific amount charged may vary depending on the road freight company and the terms of the contract.
Preventing demurrage charges
To avoid demurrage charges, consignees should ensure that they have adequate facilities and personnel to unload the goods efficiently. They should also communicate any potential delays or issues to the road freight company in a timely manner. Additionally, it is important to carefully review and understand the terms of the contract to avoid any unexpected charges.