Which statement describes a demurrage charge?

Which statement describes a demurrage charge?

• A. A fee assessed for delays in returning a vehicle or container beyond the agreed time.
• B. A discount for early return of equipment.
• C. A fee charged for damage to containers.
• D. Fees assessed for delays in returning a vehicle or container beyond the agreed time.

Answer: (D)

Demurrage charges are the fees assessed for delays in returning a container or vehicle beyond the agreed return time. They’re usually charged per day and per container, so using the plural “fees” reflects the typical way these charges accumulate across time and units. This cost compensates the asset owner for tying up equipment and terminal space and encourages timely returns. The other ideas describe different situations—early return discounts or damage fees—not the late-return charges that define demurrage.

Demurrage charges are the fees assessed for delays in returning a container or vehicle beyond the agreed return time. They’re usually charged per day and per container, so using the plural “fees” reflects the typical way these charges accumulate across time and units. This cost compensates the asset owner for tying up equipment and terminal space and encourages timely returns. The other ideas describe different situations—early return discounts or damage fees—not the late-return charges that define demurrage.