"Tanker voyage charters often contain notoriously stringent provisions for the valid issuance of a demurrage claim by owners."
Posted on: 11 March 2020
International law firm Watson Farlet Williams (WFW) has published an article discussing the demurrage time bar clauses.
Precisely what demurrage time bar clauses require has long been a question of some controversy, in light of the English High Court’s highly technical and demanding approach in the Sabrewing and the Adventure cases, contrasted with the more relaxed commercial approach in the Eternity and the Abqaiq.
In the Amalie Essberger case the High Court recently sought to clarify the position, but in so doing, some lingering uncertainty remains.
Tanker voyage charters often contain notoriously stringent provisions for the valid issuance of a demurrage claim by owners, typically requiring (i) notice and/or particulars of a demurrage claim in writing; (ii) together with all available supporting documentation – sometimes identified; and (iii) within a prescribed period from completion of discharge – often 90 days, failing which the charterers will be relieved of liability to pay the claim.
Since such clauses exclude the charterer’s liability to pay a demurrage claim, under English law courts and tribunals will apply certain rules in construing such clauses, including requirements that the wording of the clause must be clear and unambiguous; each clause turns on its own individual wording, which must be given its ordinary and natural meaning; and if there are two possible constructions, the one which exhibits the most commercial common sense should be preferred.
Disputes over the application of the time bar have mostly concerned the requirement to provide all available supporting documentation within the prescribed period.
In the Amalie Essberger case, several issues were addressed with regards to a typical time bar clause.
Follow this link to find out more about Facts, Decision and Comments on the WFW website.
