A decision of the Court of Appeal in August 2016 has provided
clarification on a question which has been troubling carriers and
cargo interests alike – when assessing container demurrage
claims, is there a cut-off date when the daily demurrage will stop
accruing?
Facts
Between April and June 2011, MSC contracted with the shipper to
carry 35 containers of raw cotton from Bandar Abbas and Jebel Ali
to Chittagong in Bangladesh. The containers were owned by MSC and
the bills of lading issued by MSC in respect of the cotton,
contained a clause providing for 14 days free time at destination,
after which the shipper would become liable for demurrage until the
containers had been redelivered to MSC. The market price of raw
cotton collapsed during the period in question and the receivers
refused to take delivery of the cotton. Proceedings between the
shipper and the receivers were pending in the High Court in Dhaka,
Bangladesh. Meanwhile the containers remained at
