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Emergency Contact The Eternal Bliss - A blissful ruling for Charterers Home Latest updates News The Eternal Bliss - A blissful ruling for Charterers 10 Dec 2021 Download Sign up for alerts The issue as to whether demurrage is intended to form liquidated damages for all the consequences of a charterer’s failure to load or unload within the laytime, or only some of them, has in recent times caused disagreement.  In what will be seen as a welcome development by charterers, on 18 November 2021 the Court of Appeal of England and Wales delivered its judgment in K Line Pte Ltd v Priminds Shipping (HK) Co Limited [1] , holding that demurrage liquidates the whole of the damages arising from a charterer’s breach in failing to complete cargo operations within the laytime “ and not merely some of them ”. Accordingly, if owners wish to recover certain liabilities in addition to demurrage arising from delay, then they must prove breach of a separate obligation in the charterparty.  Proving mere failure by the charterer in loading or discharging beyond the stipulated laytime will not be enough. Following on from our report of the first instance decision, we have provided an update on the latest judgment, which has implications on the availability of general damages in addition to demurrage arising from delay. Facts and the first instance decision K-Line (“ Owners ”) and Priminds (“ Charterers ”) had entered into a contract of affreightment for the carriage of bulk cargoes, subject to the terms and conditions of an amended Norgrain 1973 voyage charterparty form and included a demurrage clause which provided for demurrage at a maximum rate US$ 20,000 per day or pro rata. For the voyage in question the M/V ETERNAL BLISS was nominated to carry a cargo of 70,133 mt of soybeans from Brazil to China. After notice of readiness was tendered, the vessel remained at anchorage for a further 31 days due to port congestion and limited shore storage availability. Upon discharge, the so
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pi_circular Shipowners' Club ·2021-12-09

The Eternal Bliss - A blissful ruling for Charterers

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