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The Problem With Demurrage
By Adrian Challinor, CEO, Osiris Consultants Ltd
Demurrage is an issue that is necessary, but nobody likes. Simply put, it is a cost levied by the vessel owner when a vessel outstays its allowed time in port. It is a fundamental part of the contract for carriage of goods as set out in the charterparty document.
It is obviously important. An examination of charterparty documents shows that approximately 75% of the clauses are to do with in-port operations. When we look at the utilisation of dry cargo vessels, we see that over 45% of their time is spent in port. So, it’s clear that this waiting time is a commercially and contractually important issue.
TCS BaNCS Powers Societe Generale Securities Services' Transformation of Pan-European Custody Platform
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