pi_circular Cargo riskInsurance & claims West of England
Defence 04 Oct, 2021 Time bars in demurrage claims: how is time calculated? Nicola Cox Head of Defence Claims Where a charter party states that “ Owners shall notify Charterers within 30 days after completion of discharge if demurrage has been incurred ” and completion of discharge is in one time zone and owners’ notice is sent and received in another time zone, which time zone applies when calculating the 30 days? Or are the different time zones irrelevant? West’s owner Member’s case in the English High Court provides welcome clarification on time bars for demurrage claims. Download PDF Summary: In the recent decision Euronav N.V. v Repsol Trading S.A. (The Maria) [2021], the English High Court had to consider whether owners’ demurrage claim was time barred or if notification had been made in time, namely “ within 30 days after completion of discharge ”. The Commercial Court held that, absent any general provision regarding dates and times in the charterparty, the completion of discharge is to be taken as having occurred on the date that it took place, as judged according to the place of discharge (therefore applying, in effect, the U.S. time zone). The Judge held that this was the case, even if, at the time that discharge occurred, it was already the next day in both owners’ and charterers’ (European) time zones. The dispute: This was owners’ application for a summary judgment for demurrage in the sum of US$ 487,183.12 plus interest. The dispute arose under a charter party based on an amended Shellvoy 6 form, for the carriage of crude oil from Brazil (intention Santos) to 1 or 2 ports on the West Coast of the USA. Clause 15 required owners to notify charterers within 30 days after completion of discharge if demurrage had been incurred, as follows: 15 (3) Owners shall notify Charterers within 30 days after completion of discharge if demurrage has been incurred and any demurrage claim shall be fully documented, and received by Charterers, within 90 days
Time bars in demurrage claims: how is time calculated?
West of England
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