Demurrage vs. Wharfage: Know the Difference
By Shumaila Saeed || Updated on December 25, 2023
Demurrage is a charge for exceeding the allotted time for loading or unloading cargo, while wharfage is a fee for using the facilities of a port or wharf.
Key Differences
Demurrage refers to the fees charged when cargo remains at a shipping terminal beyond the allotted free time. Wharfage, on the other hand, is the fee charged for the use of the wharf facilities for storing or handling goods.
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Nov 30, 2023
The purpose of demurrage is to compensate for the occupied space and delay caused to the shipping line. In contrast, wharfage fees cover the costs associated with using port facilities, including maintenance and operation.
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Nov 30, 2023
Demurrage charges encourage timely removal of cargo to avoid congestion. Wharfage charges are levied regardless of how quickly goods are moved, as they are fees for using the wharf services.
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Nov 30, 2023
Demurrage fees are typically calculated based on the number of days cargo overstays. Wharfage fees, however, are generally calculated based on the volume or weight of the cargo.
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Nov 30, 2023
Demurrage charges can vary widely depending on the carrier and terminal policies. Wharfage fees, by contrast, are often set by port authorities and are more standardized.
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Nov 30, 2023
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Comparison Chart
Definition
Fee for extended use of container/cargo space beyond allotted time
Fee for using the facilities of a port or wharf
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Nov 30, 2023
Purpose
To compensate for delay and space occupation
To cover costs of port facility usage
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Charge Basis
Time (duration of cargo overstay)
Cargo quantity (volume or weight)
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Incentive
Encourages quick cargo movement
Applies regardless of cargo movement speed
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Calculation Variability
Varies by carrier and terminal
More standardized, often set by port authorities
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Nov 30, 2023
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Demurrage and Wharfage Definitions
Demurrage
A fee charged for keeping cargo beyond the agreed free time.
The company incurred demurrage charges due to delayed cargo clearance.
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Nov 24, 2023
Wharfage
A fee for handling or storing goods at a wharf.
The shipping company included wharfage fees in their overall service charge.
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Nov 24, 2023
Demurrage
Applied when cargo is not moved out of the terminal in time.
Delays in transportation led to unexpected demurrage costs.
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Nov 24, 2023
Wharfage
A cost associated with the use of port infrastructure.
The wharfage fee was calculated based on the cargo's weight.
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Nov 24, 2023
Demurrage
A cost incurred for occupying space at a shipping terminal beyond permitted duration.
Demurrage was charged for each day the cargo remained at the dock.
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Nov 24, 2023
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Wharfage
A charge for using the facilities of a port or harbor.
Wharfage was assessed for the goods unloaded at the harbor.
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Nov 24, 2023
Demurrage
A charge to discourage the prolonged use of container space.
To avoid demurrage, the logistics team expedited the cargo clearance process.
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Nov 24, 2023
Wharfage
Applies to goods passing through or stored at a port.
The importer paid wharfage for the containers at the sea port.
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Nov 24, 2023
Demurrage
A penalty for exceeding the allotted time for using a container.
The shipper faced demurrage after the container was left at the port for extra days.
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Nov 24, 2023
Demurrage
Detention of a ship, freight car, or other cargo conveyance during loading or unloading beyond the scheduled time of departure.
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Oct 19, 2023
Demurrage
(shipping) the detention of a ship or other freight vehicle, during delayed loading or unloading
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Oct 19, 2023
Demurrage
The detention of a vessel by the freighter beyond the time allowed in her charter party for loading, unloading, or sailing.
The claim for demurrage ceases as soon as the ship is cleared out and ready for sailing.
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Oct 19, 2023
Wharfage
The fee or duty paid for the privilege of using a wharf for loading or unloading goods; pierage, collectively; quayage.
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Oct 19, 2023
Demurrage
A charge required as compensation for the delay of a ship or freight car or other cargo beyond its scheduled time of departure
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Oct 19, 2023
Demurrage
Detention of a ship or freight car or other cargo beyond its scheduled time of departure
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Oct 19, 2023
Wharfage
A platform built out from the shore into the water and supported by piles; provides access to ships and boats
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Oct 19, 2023
Wharfage
A port charge for cargo handling and storage services.
Wharfage costs were considered in the overall shipping budget.
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Nov 24, 2023
Repeatedly Asked Queries
Can demurrage fees be disputed?
Yes, demurrage fees can sometimes be disputed, especially if delays are not the shipper's fault.
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Nov 30, 2023
What factors influence wharfage fees?
Wharfage fees are influenced by cargo type, weight, and port policies.
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Nov 30, 2023
What is the average free time before demurrage starts?
The average free time before demurrage varies, typically ranging from a few days to a week.
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Nov 30, 2023
Is wharfage a one-time fee?
Yes, wharfage is usually a one-time fee for using port facilities.
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Nov 30, 2023
How can demurrage be avoided?
Demurrage can be avoided by timely clearance and removal of cargo from the port.
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Nov 30, 2023
Is wharfage included in shipping costs?
Wharfage may or may not be included in the quoted shipping costs, depending on the carrier's policy.
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Nov 30, 2023
Are demurrage fees refundable?
Generally, demurrage fees are not refundable once incurred.
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Nov 30, 2023
What triggers demurrage charges?
Demurrage charges are triggered by exceeding the free time allowed for cargo at a terminal.
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Nov 30, 2023
Does demurrage apply to all types of cargo?
Demurrage applies to most types of cargo held beyond the allotted free time.
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Nov 30, 2023
Does weather impact demurrage charges?
Yes, bad weather causing delays can potentially lead to demurrage charges.
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Nov 30, 2023
Can small shipments incur wharfage?
Yes, wharfage can apply to any size of shipment passing through or stored at a port.
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Nov 30, 2023
What factors can increase demurrage costs?
Factors like customs delays, documentation issues, and transportation problems can increase demurrage costs.
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Nov 30, 2023
How can shippers manage demurrage costs?
Shippers can manage demurrage costs by planning efficient cargo pickup and transportation.
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Nov 30, 2023
Are wharfage fees the same at all ports?
No, wharfage fees vary depending on the port and its specific tariff schedule.
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Nov 30, 2023
Is wharfage a common charge in international shipping?
Yes, wharfage is a common charge in both domestic and international shipping.
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Nov 30, 2023
How is wharfage calculated?
Wharfage is typically calculated based on the volume or weight of the cargo.
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Nov 30, 2023
What is the purpose of wharfage fees?
The purpose of wharfage fees is to cover the costs of using port facilities and infrastructure.
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Nov 30, 2023
Can demurrage fees be negotiated?
In some cases, demurrage fees can be negotiated with the carrier or terminal operator.
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Nov 30, 2023
Does wharfage apply to empty containers?
Wharfage typically applies to the cargo, not the containers themselves.
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Nov 30, 2023
Are wharfage fees standard across all cargo types?
No, wharfage fees may vary depending on the type and nature of the cargo.
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Nov 30, 2023
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
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