On Demurrage definition

On Demurrage means that if laytime has expired, the charterer has to pay the amount of money to the shipowner. Such time ceases to count once the berth becomes available. When the vessel reaches a place where she is able to tender Notice of Readiness, laytime or time on demurrage resumes after such tender and, in respect of laytime, on expiry of any notice time provided in the charterparty.
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On Demurrage means that the laytime has expired.DISTINGUISH WITH “DETENTION”: penalty imposed on a charterer for a wrongful or unnecessary delay usually period of time after demurrage is over and ship is still late.Weather Delays: will usually stop the laytime clock and extend it. If it exceeds laytime (i.e. sever weather) it becomes real time (on the charterer).Notice of Readiness: Notice that the vessel has arrived at port and is ready to load or discharge. 2. SHIPPING CORP OF INDIA:Facts: Permitted laytime used before it even starts to load. Vessel on demurrage prior to commencement of loading. 6 hour notice time.Issue: Has the ship been on demurrage the whole time?Judge’s Formula: All laytime used - allowed laytime = demurrage. But what is “used laytime?” Therefore, charterer will always get the benefit.Correct Formula: Once notice is given, then clock starts ticking. If still delayed, shifts and demurrage begins. However, if shift is on laytime, it is not on demurrage, not on charterer’s time.3 instances where charterer not liable for demurrage: specific exoneration clause in charterparty; delay attributable to vessel owner; Vis Major: sudden/unforseen act preventing loading/unloading not due to charterer. ORIENT SHIPPING CO. (PORT CONGESTION)Facts: Vessel arrived on time, but it could not unload due to serious port congestion (STRIKE). Charter party has an exception clause relieving D from liability for demurrage / excess laytime due to port congestion where that port congestion is beyond charterer control.Reversible Laytime: an option given to the charterer to add together the time allowed for loading and discharging. Where it is exercised, the effect is the same as a total time being specified to cover both options.Despetch: ($) credit you get back from owner if you finish early. Usually half the amount of demurrage.Calculable Laytime: can’t calculate how much laytime you have unless you know how much cargo is on the vessel.Holding: Court upholds the catchall clause: anything beyond charterer’s control does not count. Although strike itself is over, there was still time lost
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Related to On Demurrage

  • Demurrage means charges payable for storage of cargo within port premises beyond free period, as specified in the scale of rates.

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  • Freight Forwarder means that term as defined in 49 USC 13102.

  • Video-On-Demand or “VOD” means a programming system for transmission and retransmission of a single motion picture or programme (or series of related programs) delivered by means of a telecommunications or other technical system from a digital storage devise or presented in any form that permits Exhibition of such motion picture or programs in a non-linear form at the discretion of the viewer.

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  • Charterer means a person, firm, corporation, association, partnership, or other legal entity who contracts for the transportation of passengers and baggage, or goods and/or property from a specified origin to a specified destination, for a particular itinerary, agreed upon in advance.

  • Laytime means the amount of time that a charterer has to load a vessel before the vessel is deemed to be on Demurrage.

  • Salvage means the controlled removal of materials from a covered project, for the purpose of reuse or storage for later reuse;

  • Cargo means any property carried on an aircraft other than mail, stores and accompanied or mishandled baggage;

  • Transporter means a person engaged in the off-site transportation of hazardous waste by air, rail, highway, or water.

  • Shipper means the party who contracts with Carrier for the transportation of Crude Petroleum under the terms of this tariff.

  • SMC means a safety management certificate issued in respect of a Ship in accordance with rule 13 of the Code;

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  • Freight Switcher means a locomotive that moves rail cars around a rail yard as compared to a line-haul engine that moves freight long distances.

  • Salvage Yard means any non-residential property used for the storage, collection, and/or recycling of any type of equipment, and including but not limited to vehicles, appliances and related machinery.

  • Builder means the general contractor.

  • Vessel means the vessel/craft belonging to the Contractor for carrying out the work.

  • Notice of Charges means a notice sent by the Compliance Department pursuant to Rule 607.

  • Salvage operation means any business, trade or industry engaged in whole or in part in salvaging or reclaiming any product or material, including but not limited to metals, chemicals, shipping containers or drums.

  • Peak Demand means the maximum Metered Demand in the last 12 months;

  • Merchant Shipping Notice means a Notice described as such, issued by the Maritime and Coastguard Agency, and any reference to a particular Merchant Shipping Notice includes a reference to any such document amending or replacing that Notice which is considered by the Secretary of State to be relevant from time to time;

  • storage vessel means a pressure vessel as defined in the Regulations for Pressure Vessels made under the Occupational Health and Safety Act;

  • smelter means an electrolytic reduction plant for the conversion of alumina to aluminium using alumina produced from bauxite;

  • STC means the Special Terms and Conditions of Contract.

  • Packing means the activities required to wrap and protect an article, properly place the article in appropriate carton or box, and stow the article and its carton or box in a lift van of sufficient size and constructed in accordance with post specifications; includes obtaining customs clearances and required documentation for shipment, via surface or air as appropriate.

  • Consignee means the person to whom the goods are required to be delivered as specified in the Contract. If the goods are required to be delivered to a person as an interim consignee for the purpose of dispatch to another person as provided in the Contract then that "another" person is the consignee, also known as ultimate consignee.