"Demurrage Claims" For The Purposes Of Documentary Time Bars

On 2 February 2018 the Commercial Court allowed an appeal from a decision of the Arbitration Tribunal in Lukoil Asia Pacific Pte Ltd v Ocean Tankers Pte Ltd.

The Judgment serves as a reminder to Owners to ensure that, if they have a claim for demurrage (no matter how it arises under the charter), as opposed to a claim for which any delay is compensated at the demurrage rate, they comply with any time bars in relation to demurrage claims.

The Claim

The question before the Court was whether a claim categorised as one for delay waiting for orders, was in fact a demurrage claim.

The clause under which the claim was brought provided:

Litasco Clause 4 – Waiting for Orders Clause