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Demurrage is a charge incurred when cargo is held in a shipping container beyond the agreed-upon free time period. It serves as a financial incentive for shippers to pick up or unload their cargo promptly, thereby freeing up shipping equipment for other uses. The fee is typically calculated on a daily basis and can accumulate rapidly, impacting overall shipping costs. Demurrage is a common practice in the shipping and freight industry to manage delays and optimize logistics.
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