What does demurrage refer to in shipping terms?

Demurrage specifically refers to a charge incurred when a ship is not loaded or unloaded within the agreed time frame, resulting in the vessel being delayed at the port. This fee serves as a penalty for the shipper or receiver due to the extra time the ship occupies the port. The concept aims to incentivize prompt actions in loading and unloading processes, ensuring efficiency in shipping operations.

The correct option captures the essence of demurrage accurately, as it highlights the core issue of time management in logistics, particularly in maritime operations. This understanding is crucial for global business professionals who need to be aware of various costs associated with shipping and logistics to operate effectively in international trade.