Associated Petroleum Consultants

Demurrage Disputes

Associated petroleum consultants can help with Demurrage Disputes

What is demurrage?

The basic definition of demurrage – a fee leveraged on cargo that stays at a terminal too long. The intent behind the fee is understandable – facilities need to turnover storage space as quickly as possible in order to make room for new customers. Demurrage exists to incentivise shippers to stay on schedule.

All port officials have the ability to enforce demurrage charges. In practice, it can be difficult to understand when you should actually expect to see demurrage charges on your bill. It’s worth noting that you’re at risk of incurring fees on both imports and exports. Figuring out whether or not you’ll owe demurrage is just the first step. It can be an equally uncertain process to determine just how much you’ll have to pay. As each terminal and carrier sets their own rates, and they almost always charge on a per day, per container basis.

How long is too long?

Generally, a port will offer 4-7 free days of storage. Saying that each terminal has slightly different rules, and they could change at any time.

Demurrage is without a doubt one of the most frustrating aspects of working in shipping. As there are plenty of instances when cargo delays are out of your control, but at the end of the day, shippers are (unfortunately) almost always responsible for the fees. Demurrage is an inevitable possibility – even if the delay isn’t your fault.

Associated Petroleum Consultants limited are experts in Demurrage disputes. Our primary aim is to offer impartial advice to clients as to the most suitable means of resolving such demurrage disputes as timeously as possible, on the understanding that many of these disputes result in expensive litigation.

Our personnel come from different technical and scientific backgrounds, including time-served deck officers of tankers, petrochemical carriers and LPG/LNG vessels, as well as laboratory chemists. Together we have expertise to help  in all aspects of Demurrage disputes.

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