- 02-Jul-2025
- Marriage and Divorce Laws
Demurrage disputes arise when a charterer or cargo receiver delays the loading or unloading of a vessel beyond the agreed free time, causing financial loss to the shipowner. Resolving these disputes requires understanding of contractual terms and applicable legal frameworks.
Demurrage refers to the charges payable to a shipowner for delays caused by the charterer or consignee beyond the agreed laytime (free time for loading/unloading). Disputes arise when parties disagree on the liability or amount of demurrage.
The contract between shipowner and charterer usually defines demurrage terms and conditions.
Most demurrage disputes are resolved through arbitration as per arbitration clauses in shipping contracts.
Provides for court jurisdiction over maritime claims including demurrage disputes.
Disputes may also be resolved following internationally accepted rules such as the Hague-Visby Rules.
Parties often attempt to settle disputes amicably to avoid litigation costs.
Neutral third parties may assist in reaching a settlement.
A common and preferred method for demurrage disputes; arbitrators decide based on contract terms and evidence.
Used when arbitration is not an option or parties seek interim relief, like vessel arrest.
A shipping company charters a vessel to load cargo at a Mumbai port. Due to delayed customs clearance, unloading exceeds the agreed laytime. The shipowner claims demurrage charges, but the charterer disputes the delay reason. Both parties resolve the dispute through arbitration, where the claim is partially upheld based on contract terms.
Answer By Law4u Team
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