sadperson4324
15:59
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
contract demurrage
Read a random definition: casing point
A quick definition of contract demurrage:
Contract demurrage is a fee that a charterer must pay to a shipowner if they take longer than the agreed time to load or unload cargo from a vessel. This fee is specified in the contract between the charterer and the shipowner and is meant to compensate the shipowner for any losses incurred due to the delay. If the delay is not covered by the contract, the charterer may still be liable for non-contract demurrage, which is determined by a court. Additionally, a charge may be due for the late return of ocean containers or other equipment.
A more thorough explanation:
Definition: Contract demurrage refers to the liquidated damages that a charterer owes to a shipowner for failing to load or unload cargo within the agreed time. It is a type of demurrage that is specified in the charterer's contract with the shipowner.
Examples:
- If a charterer agrees to load a ship within three days but takes four days to do so, they may be required to pay contract demurrage to the shipowner.
- Contract demurrage can also apply to unloading cargo from a ship at the destination port.
These examples illustrate how contract demurrage is a penalty that a charterer must pay if they do not fulfill their obligations under the contract with the shipowner. It is a way to compensate the shipowner for any losses or expenses incurred due to the delay in loading or unloading cargo.