Demurrage occurs under what condition?

• A. When the ship completes loading ahead of scheduled time.
• B. When the ship remains in port after the time allowed.
• C. When despatch is earned by delaying cargo.
• D. When laytime is extended by mutual agreement.

Answer: (B)

Demurrage happens when the ship stays in port beyond the agreed window for loading or unloading. This window, the laytime, is the time allowed to complete cargo operations as set in the charter party. If the vessel lingers past that allotted period, the shipowner can levy demurrage as compensation for the extra time and use of port facilities. Despatch, by contrast, is a reward for finishing early. If laytime is extended by mutual agreement, that new period becomes the allowed window, and demurrage would not start until after that extended time. So the condition described is the vessel remaining in port after the time allowed.