[2] That is, demurrage describes the charges that the charterer pays to the ship owner for its delayed operations of loading or unloading.
[3] Officially, demurrage is a form of liquidated damages for breaching the laytime as it is stated in the governing contract (the charterparty).
[citation needed] In commercial ship chartering, demurrage is an ancillary cost that represents liquidated damages for delays.
It occurs when the vessel is prevented from loading or discharging cargo within the stipulated laytime (see affreightment: under Charter-parties).
The Statement of Facts enables a time sheet to be drawn up and signed by the master and the shipper or receiver of the cargo.
This extra usage usually entitles the container supplier (usually the shipping carrier) to require a payment from the merchant.
[8] On railways, it is the charge on detention of trucks[9] (or rolling stock), either to the shipper for holding the car (laden or not), or to the connecting railroad(s) while the car is empty and returning to the home road (in either case, as a way to encourage speedy unloading and return of empties to improve utilisation of rolling stock).