Demurrage meaning in oil and gas

Demurrage is a general term used to indicate a surcharge for delays in delivering a product.<p> <p> In industries where items are sold in rented containers, demurrage is synonymous with the free rental of the container for a given period of time. The assumption is that a given amount of free time using the container is built into the cost of the item.<p> <p> In commercial shipping, demurrage is an ancillary cost that represents liquidated damages for delays, occurs when the vessel is prevented from the loading or discharging of cargo within the stipulated laytime.