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ARTICLE · 02 JANUARY 2013

Force Majeure Clause Breaks Demurrage Indemnity Chain

Clyde & Co
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An FOB buyer at the top of a chain of sale contracts was unable to pass demurrage liability to its seller because the force majeure clause in the sale contract applied.

United KingdomTransport
Pressiana McQuinn
Pressiana McQuinn
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An FOB buyer at the top of a chain of sale contracts was unable to pass demurrage liability to its seller because the force majeure clause in the sale contract applied.

The Great Elephant Corp v Trafigura Beheer BV & Others [2012] case concerned a claim brought by the owners of the oil tanker "CRUDESKY" against the charterer, Trafigura, for demurrage and other sums incurred when the vessel was not permitted to leave Nigeria by the local authorities.

Trafigura bought a cargo of crude oil from Vitol on FOB terms and chartered the "CRUDESKY" to lift the cargo. Vitol had bought from China Offshore (Singapore) International Pte Limited ("COOSI") which in turn contracted with Total as the ultimate supplier.

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