Liability to Pay Demurrage under a Voyage Charterparty

Document Type : Research Paper

Authors

1 Invited Lecturer, Faculty of Law and Political Science, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Ph.D. Graduate in Private Law, Faculty of Law and Political Science, Science and Research Branch, Islamic Azad University, Tehran, Iran

Abstract

Nowadays, in order to apportion the risk and to avoid the vessels' delay, most of the voyage charters include provisions, either explicit or tacit, which binding the charterers to carry out loading and discharging operation in a designated time limit (laytime), urge them,in case of delay,to pay the owners an agreed amount (ie. Demurrage).Though, liability for demurrage rests with the charterers, however, the charterers' liability to pay demurrage is subject to the various terms and conditions of the charter. Furthermore, possibility of issuing bill of lading and performance of cargo operations by third parties, may lead to exonerate the charterers and sometime direct the liability to third parties. This article, studying the different aspect of the issue, will explore the charterers' and third parties' liability to pay demurrage.
 

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