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In a demurrage case, msc v cottonex, actually involving demurrage accruing on containers trapped in A port, the Margaret Court of appeal seemed reluctant to admit that the contract bridge, and the conservative to accrue demurrage, could continue indefinitely, and decided that the contracts for carriage of the containers had been repudiated by A delay which frustrated.
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However, in the current case at that place is nomination of a safe larboard, which means that the ship possessor is in command of the vas for the ocean trip and the charterer will provide the cargo at letter a given time astatine the safe left.
What's the difference between demurrage and detention charges?
Demurrage vs. Detention. Demurrage and detention charges may be considered one and the same, but they are actually different. Demurrage charges apply to the storage of containers while under the ship charterer’s care. This includes shipments that are being held in a port, container yard, or rail terminal.
Which is an example of a case of demurrage?
As an example of demurrage, consider a shipper that specifies it will need two lay days for loading its cargo onto the ship, but finds that something is missing, and needs another full day to get the entire cargo loaded. This would make the freighter late on its schedule, potentially costing it money on its other contracts.
When does demurrage occur in a charter agreement?
Demurrage is a result of a failure to abide by the rules agreed to in a charter agreement. Specifically, it is when a charge is payable to the owner of a chartered ship on the failure to load or discharge the ship within an agreed time period. When a ship is chartered, there is usually an allotted time for delivery...
What is demurrage in the world of shipping?
The world of shipping works on the basis of strict rules and resultant penalties for failure to abide by such defined parameters. What is demurrage? Demurrage is a result of a failure to abide by the rules agreed to in a charter agreement.
Last Update: Oct 2021
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