Demurrage and Detention – Exporter vs Shipping Line – case study
Further to my previous posts regarding Demurrage and Detention
here is a case which one of the readers sent to me..
- Shipper made booking with the shipping line
- They requested for 14 free days at destination
- Line confirmed in writing with the words “We confirm 14 days free time for the respective B/L at destination”
- When containers reached the destination, the shipping lines agent charges the consignee demurrage after expiry of 3 free days
- Consignee complains to shipper who in turn takes it up with the shipping line
- Shipping line says their 14 free days is for “detention” and not for “demurrage”
- Remember –
- Demurrage is charged when containers are still full and under the control of the shipping line and has not been cleared or picked up by the consignee
- Detention is charged after the containers have been picked up, but container (full or empty) is still with the consignee
- But whether these 14 free days were for Demurrage or Detention were not specified on the free days confirmation from the shipping line
- The shipper was also not specific in asking for 14 demurrage free days or demurrage/detention free days
- Consignee is refusing to pay the shipper for the demurrage charged by the shipping line
Whoever is at fault here, moral of the story is – BE SPECIFIC WHEN REQUESTING FREE DAYS AND MENTION WHETHER IT IS REQUIRED FOR DEMURRAGE OR DETENTION OR ASK THE LINE TO OFFER COMBINED DEMURRAGE/DETENTION..