Urgency premium is the additional price charged for expedited delivery, processing, or service when normal timing cannot meet customer requirements. This premium compensates for operational disruptions, resource reallocation, and priority handling required to meet urgent delivery demands.

Urgency premiums vary based on market conditions, capacity constraints, and the degree of timeline compression required. These premiums help allocate scarce capacity efficiently while providing revenue compensation for operational flexibility. Understanding urgency pricing helps assess supply chain options and cost trade-offs.

Real-world example: A refinery charges a $5 per barrel urgency premium for 48-hour product delivery instead of the standard 7-day delivery schedule, compensating for expedited processing and logistics coordination required to meet the urgent timeline.