Charges when rail freight and ships are retained beyond a specified loading or unloading time.

Charges when rail freight and ships are retained beyond a specified loading or unloading time.

• A. Detention
• B. Demurrage
• C. Dispatching
• D. Distribution

Answer: (B)

Demurrage charges apply when cargo or the carrier’s equipment is kept at the terminal beyond the allowed free time to load or unload. This fee compensates the carrier for occupying space and equipment at the port or rail yard. In practice, if a ship cannot unload within the designated window, or a railcar sits in a terminal past the allotted time, demurrage accrues. Detention is a separate charge tied to keeping the carrier’s equipment beyond free time away from the terminal, dispatching relates to expediting service rather than a charge, and distribution refers to moving goods through the supply chain, not a specific charge. So the term that fits the described situation is demurrage.

Demurrage charges apply when cargo or the carrier’s equipment is kept at the terminal beyond the allowed free time to load or unload. This fee compensates the carrier for occupying space and equipment at the port or rail yard. In practice, if a ship cannot unload within the designated window, or a railcar sits in a terminal past the allotted time, demurrage accrues. Detention is a separate charge tied to keeping the carrier’s equipment beyond free time away from the terminal, dispatching relates to expediting service rather than a charge, and distribution refers to moving goods through the supply chain, not a specific charge. So the term that fits the described situation is demurrage.