Waiting for cargo
Overview
Enquiry: The vessel was fixed basis laydays/cancelling 6/10 August. She arrived at loading port 8 August. On 10 August Master called owners and informed them that according to the port agent the shipment had been cancelled by the shippers. Owners immediately contacted charterers who advised that they would send a representative to loading port to sort out the problems and they instructed owners to keep vessel waiting. Charterers' representative was scheduled to arrive at loading port 12 August. So, vessel has already been waiting for four days and owners like to know to do about this matter. Reply: Two situations should, in principle, be observed: A) Charterers clearly express in words and/or action that they intend to comply with their contractual obligation to supply cargo for shipment. B) It is apparent that charterers do not intend to supply cargo for shipment thereby repudiating the charterparty. A situation under A) above is comparatively straight forward; the vessel must wait until the cargo is made available for shipment (assuming this can he achieved within a reasonable time). In so far as charterers are entitled to the laytime they have "bought"*, laytime will count in accordance with the relevant terms and conditions contained in the charterparty and if laytime is exceeded then owners' remedy is to claim demurrage thus incurred, i.e. owners cannot claim damages or detention. * See summary of the London arbitration award which appeared on pages 34/35 of BIMCO Bulletin 4/92 and in which it was held that the delay incurred due to problems with sale of the cargo should count against laytime If, however, the circumstances fall under B) above then matters are more complex. In principle, the vessel must wait, but if it is obvious that no cargo will be supplied then owners are entitled to order the vessel to sail and claim damages flowing from charterers' non-adherence to the contract. Unfortunately, it is probably the exception rather than the rule that such a situation is as clear cut as one would wish it to be. Whereas charterers may have the best intentions and, hence, attempt to straighten out matters enabling them to supply the cargo, and, "hoping for the best" they do not wish to expose themselves to a claim from shipowners therefore they may be somewhat hesitan...
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Posted:
02 June 2016
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