Demurrage and Laytime Disputes Explained (Bangladesh)
When a ship carrying your cargo waits at berth or anchorage longer than the contract allows, someone pays for that time. Demurrage disputes turn on narrow points, when the clock started, whether the right notice was given, which delays count, and those points decide sums that add up quickly.
What is demurrage?
Demurrage is money a charterer pays a shipowner when loading or discharging the cargo takes longer than the agreed laytime. It compensates the owner for the vessel being detained beyond the time the charterparty allowed. The rate and how it is calculated are set by the charterparty.
Laytime is the free time; demurrage is the overrun
Laytime is the period the charterparty allows for cargo operations without extra charge. Once that time is used up and the ship is still working or waiting, the charterer moves onto demurrage and pays at the agreed daily rate. Getting the boundary right, when laytime starts, pauses, and ends, is where most disputes live.
When does laytime start?
Laytime usually begins only after a valid notice of readiness is given, once the vessel has arrived and is ready to load or discharge. Whether the notice was valid, and when it took effect, is one of the most common points of argument, because it fixes the moment the clock started.
Which delays count
Charterparties except certain delays from laytime, weather, congestion, or specified port conditions, so time lost to them may not count against the charterer. Whether a particular delay is excepted depends on the precise wording. Two charterparties can treat the same delay very differently.
Defending or pursuing a claim
Demurrage claims are frequently won or lost on notice, timing, and documentation rather than on the rate. Statements of fact, notices of readiness, and pumping or cargo logs decide them. Whether you are an owner pursuing demurrage or a charterer resisting it, the paper trail is the case.
Where this firm fits
Charterparty, demurrage, and laytime questions form part of the firm’s maritime practice, alongside cargo claims and ship arrest. If a demurrage claim has landed on your desk, or you are trying to recover one, an early look at the charterparty and the port papers usually shows the strong and weak points, speak with the advocate.
This article is general information, not legal advice. For your specific matter, speak with the advocate.
Frequently asked questions
What is demurrage?
Demurrage is money a charterer pays a shipowner when loading or discharging the cargo takes longer than the agreed laytime. It compensates the owner for the vessel being detained beyond the time the charterparty allowed. The rate and how it is calculated are set by the charterparty.
What is the difference between laytime and demurrage?
Laytime is the period the charterparty allows for loading or discharging the cargo without extra charge. Demurrage is what the charterer pays once that allowed laytime is used up and the ship is still detained. In short, laytime is the free time; demurrage is the penalty for exceeding it.
How can I defend or reduce a demurrage claim?
Check when laytime started, whether a valid notice of readiness was given, and which delays are excepted under the charterparty, such as bad weather or port congestion. Demurrage claims often fail on notice, timing, or documentation rather than on the rate itself.