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Thursday, April 19, 2018

CHARTER PARTY INFORMATION

* Delayed demurrage payments - INTERTANKO’s charterparty provisions provide a solution

* Late payments of Freight - members are requested to report to the secretariat all freight payments which are received late

Delayed demurrage payments - INTERTANKO’s charterparty provisions provide a solution

It is worth highlighting that where owners are facing delays in collecting demurrage payments resort may be made to INTERTANKO’s demurrage clauses, which may be incorporated in a charterparty.

The clauses are as follows:

“1. The charterers shall promptly notify the owners of any objections to any demurrage claim under this charterparty. Unless the owners have received such notification within [30] days after the charterers’ receipt of the claim, the charterers shall be deemed to have waived objection to the claim which shall be deemed accepted by the charterer as presented.

2. The charterers shall pay any undisputed demurrage without delay, but in any event not later than [45] days after the charterers’ receipt of the demurrage claim.

3. The owners shall have the right to present a separate demurrage claim for the loading port(s) if demurrage is incurred there.

4. Payment of demurrage shall be made by the charterers without any set off or deduction for any counterclaim, including but not limited to any cargo claim, provided reasonable security for any documented counterclaims has been provided by the owners. An appropriate undertaking from a P&I club in the International Group shall be regarded as reasonable security in this respect.

5. The charterers shall pay interest on all demurrage due and unpaid at LIBOR plus 2% calculated from the [45th] day after the charterers’ receipt of a properly documented demurrage claim until payment is made.”

Notes on the clauses

Clause 1 is intended to operate reciprocally with the typical limitation clauses where charterers specify a number of days after the completion of discharge within which fully documented demurrage claims must be made.

Clauses 2 and 5 give financial muscle to owners’ rights and charterers’ obligations.

Clause 3 provides owners with the possibility of claiming demurrage incurred at a load port before the vessel has discharged; this is a right owners do not ordinarily have as demurrage covers excess laytime at both load and discharge ports.

Clause 4 deals with the familiar situation where a demurrage claim is not expressly disputed but charterers seek to set off a cargo claim against their liability for demurrage.

Members are requested to contact john.fawcett-ellis@intertanko.com should they wish to discuss any aspects of demurrage payments.

Late payments of Freight - members are requested to report to the secretariat all freight payments which are received late

Some time ago the secretariat circulated to members a late payment of freight questionnaire. Whilst we do receive notifications from members from time to time, we would like to repeat this request for such information. We are also available to assist members by contacting charterers in situations where freight is not paid on a timely basis. We refer our members to issue 28 of our Weekly NEWS, which includes articles on the contractual principles on freight payments and some possible solutions to alleviate this problem. Should members wish to report any delayed freight payments they are requested to contact john.facwcett-ellis@intertanko.com