Definition of DEMURRAGE in Black's Law Dictionary 4th Edition – Legal dictionary – Glossary of legal terms.
Definition of DEMURRAGE
In maritime law. The sum which is fixed by the contract of carriage, or which is allowed, as remuneration to the owner of a ship for the detention of his vessel beyond the number of days allowed by the charter party for loading and unloading or for sailing. Also, the detention of the vessel by the freighter beyond such time. See 3 Kent, Comm. 203; 2 Steph. Comm. 185. Continental Grain Co. v. Armour Fertilizer Works, D.C.N.Y. 22 F.Supp. 49, 54; Yone Suzuki v. Central Argentine Ry., C.C.A.N. Y., 27 F.2d 795, 804. The term has been adopted in railroad practice. Central R. Co. of N. J. v. Gallena-Poole, Inc., 107 N.J.Eq. 267, 152 A. 251, 252; Sibley, L. B. & S. Ry. Co. v. Braswell Sand & Gravel Co., La.App., 199 So. 427, 428.
The sum agreed to be paid to the ship for delay caused without her fault, and which ordinarily does not begin to run until the lay days have been used up. Earn Line S. S. Co. v. Manati Sugar Co., C.C.A.N.Y., 269 F. 774, 776. The amount agreed upon or allowed by law for unreasonable detention. Clyde v. Wood, 179 N.Y.S. 252, 255, 189 App. Div. 737; W. R. Grace & Co. v. Hansen, C.C.A.Wash., 273 F. 486, 496.
"Demurrage" is only an extended freight or reward to the vessel, in compensation for the earnings she is improperly caused to lose. Every improper detention of a vessel may be considered a demurrage, and compensation under that name be obtained for it. Donaldson v. McDowell, Holmes, 290, Fed.Cas.No.3,985.
"Demurrage" is a claim for damages for failure of the consignee to accept delivery of the goods. Little v. One Cargo of Lumber, D.C.Fla., 2 F.2d 608, 609.
---
That's the definition of DEMURRAGE in Black's Law Dictionary 4th Edition – Legal dictionary – Glossary of legal terms. Courtesy of Cekhukum.com.
