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ARTICLE · 23 NOVEMBER 2018

Charterers Beware! "Once On Demurrage, Always On Demurrage"

The maxim, "Once on Demurrage, always on Demurrage" is with respect to the subject matter of a Charterparty.

NigeriaTransport

The maxim, "Once on Demurrage, always on Demurrage" is with respect to the subject matter of a Charterparty.

There are different types of charterparties namely; bareboat/demise, time and voyage. This article will focus on time and voyage charter parties.

In a time or voyage charter party, the charterer hires the vessel for a specific time or voyage over an agreed period. The agreed period is referred to as "laydays" or "laytime" as the case may be.

The charterer is expected to load or discharge its cargos within laytime, if the charterer exceeds the period, demurrage will start to accrue. Demurrage is damages paid for using a vessel outside the agreed period.

The maxim "Once on demurrage, Always on Demurrage" simply means that: a charterer will be liable for using the vessel outside the agreed period specified in the charter party. Therefore, the breach continues until loading or discharge is complete.

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