Voyage Charters

Page 501

Chapter 16


7. Demurrage 101
  Ten running days on demurrage at the rate stated in Box 18 per 102
  day or pro rata for any part of a day, payable day by day, to be 103
  allowed Merchants altogether at ports of loading and discharging. 104
16.1 As with laytime, the Lloyd’s Shipping Law Library contains a specialist work on demurrage,1 to which reference should be made for a full treatment of the subject.


16.2 If the vessel is detained in loading or discharging beyond the agreed laytime, the charterer is in breach of charter and the suggestion to the contrary implicit in the word “allowed” does not alter this analysis. The charterer’s liability may sound in damages at large or, where a demurrage rate is agreed, in demurrage, which is liquidated damages for that breach. Viscount Finlay stated the principle in William Alexander v. Akt. Hansa:2

If the charterer has agreed to load or unload within a fixed period of time … he is answerable for the non-performance of that engagement, whatever the nature of the impediments, unless they are covered by exceptions in the charterparty or arise through the fault of the shipowner or those for whom he is responsible.

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