• About Us
  • Contact Us
  • Photo Gallery
  • Privacy Policy
  • Terms of Use
  • Citi TV
Monday, May 29, 2023
Citinewsroom - Comprehensive News in Ghana
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Coronavirus
  • Infographics
  • Livestream
  • Videos
No Result
View All Result
Citinewsroom - Comprehensive News in Ghana
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Coronavirus
  • Infographics
  • Livestream
  • Videos
No Result
View All Result
Citinewsroom - Comprehensive News in Ghana
No Result
View All Result

Demurrage: Delay and loss of time – Part 1 [Article]

July 9, 2021
ShareShareShareShare

The word “demurrage” is well known amongst maritime industry players. In the Law of Demurrage, 5th Edition 2013, Tiberg, the authors define the term demurrage as being “derived from the verb “demur” in its old sense to tarry, or the French “demeurer”, which means to remain or stay”.

In the context of shipping, it is generally known as a payment provided by the law of contract for the use by the charterer of time beyond that which is considered to be necessary for loading or discharging of a ship or for the performance of certain duties related to the ship.

It’s main use and concern is with respect to loss of time, particularly such loss is directly impacting a ship, not her cargo.

In Ghana, the word has been used widely, to also include the time at which a container is held or waiting at a terminal, even after being discharged from a ship.

The legal implications of these charges on cargo in Ghana shall be analysed in part 2 of this article series.

It is important to note that under a voyage charter party, the owner of the ship pays for the maintenance, insurance, crew wages, and bunkers.

The Charterer is responsible for paying the freight to have goods carried from one load port to a discharge port.

The freight amount will cover the voyage from the load port to the discharge port and a limited period to load and to discharge at the loading and discharge ports respectively. This limited period of allowed time is called “laytime” or “lay days”.

If the charterer exceeds the laytime it is a breach of the charter party and shall be liable to pay damages for such a breach, of which the liquidated damages are called demurrage.

The amount of demurrage is usually calculated on the market rate payable for the ship at the time of agreeing to the charter party.

The shipowner will want to start laytime as soon as possible because as soon as laytime elapses, the shipowner will start earning demurrage.

It will be the opposite for a charterer, as they would want laytime to start counting as late as possible so that the ship never comes on demurrage.

Depending on what the parties have agreed, laytime tends to start running if three key requirements are met: (1) the ship has arrived at the port; (2) notice of readiness has been given in accordance with the charter party agreement, and (3) the ship is in fact ready.

There are legal definitions to determine the three key requirements, which shall be analysed in part 2 of this article series.

It is important that shippers in Ghana must be very clear as to the express laytime terms with respect to their contractual relationship with a specific shipping line or charterer. Additionally, it is key that a shipper is aware of the amount of demurrage and the calculated rate payable prior to agreeing to any contract.

Source: Maritime Barrister and Oil & Gas specialists
Tags: Demurrage
Previous Post

South Sudan leader pledges no more war

Next Post

UGBS’ Prof. Hinson ranked number one business and marketing scholar in Ghana

Next Post

UGBS' Prof. Hinson ranked number one business and marketing scholar in Ghana

TOP STORIES

JUSAG suspends strike after meeting with govt

May 29, 2023

Association of Authors and Publishers apologises to NaCCA over controversial textbook

May 29, 2023

Ghana’s ambulance not for sale in Dubai – National Ambulance Service

May 29, 2023
Load More
ADVERTISEMENT
Citinewsroom – Comprehensive News in Ghana

CitiNewsroom.com is Ghana's leading news website that delivers high quality innovative, alternative news that challenges the status quo.

Archives

Download App

Download

Download

  • About Us
  • Contact Us
  • Photo Gallery
  • Privacy Policy
  • Terms of Use
  • Citi TV

© 2021 All Rights Reserved Citi Newsroom.

No Result
View All Result
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Coronavirus
  • Infographics
  • Livestream
  • Videos

© 2021 All Rights Reserved Citi Newsroom.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT