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Tuesday, June 19, 2018

CHARTER PARTY INFORMATION

Demurrage clauses – escalation provisions

Owners may well be out of pocket when their vessels incur substantial delays because demurrage rates have not mirrored the increase in freight rates. Where the likelihood of delays is greater at a particular destination owners may wish to consider including a provision which provides for an escalation in the demurrage rate if the delay exceeds a certain period. Such a clause is easily drafted and could provide, for instance, the following:

“Demurrage shall accrue per day pro rata at [USD 15,000] for the first 48 hours thereafter at [USD 17,000] for the next 48 hours and thereafter at [USD 19,000] for any delay thereafter.”

Members should contact Mr. John Fawcett-Ellis by E-mail john.fawcett-ellis@intertanko.com to discuss charterparty related issues or to raise specific questions.

Freight and Demurrage Information Pool

Many members may be starting the New Year with demurrage and other claims still held over from the early part of 2000 or even 1999. Assistance is available from INTERTANKO’s Freight and Demurrage Information Pool (“FDIP”) to establish a dialogue with charterers on such claims and to speed up the payment of claims which are either undisputed or agreed. Benefits of membership of the FDIP include:

* Quarterly FDIP Circular and Statement which lists defaulting charterers

* Access to the database of charterers’ that have been reported to the FDIP

* The FDIP will contact charterers on a member’s behalf and follow up a demurrage or other claim

The FDIP acts in accordance with a member’s instructions and respects commercial relationships.

To find out more about this service please contact Mr. John Fawcett-Ellis by E-mail john.fawcett-ellis@intertanko.com