The shipping company aided in resolving a $24,000 demurrage dispute due to delays in sending key documents. This dispute, valued at approximately $48,000, arose between the ship owners and charterers, and complexities in the claims process emerged due to the delay in sending documentation.
Details of the Demurrage Dispute
The demurrage dispute stemmed from delays in unloading cargo, as the ship owners were attempting to seek compensation from the charterers. The shipping company became involved in this matter due to the failure to send supporting documents on time. This delay resulted in the charterers' objections not reaching the owners in a timely manner, reducing the opportunity to address the deficiencies in the claims.
Impact of Delayed Document Submission
Despite the ship owners' claims not being entirely clear and questions regarding the timely submission of documents, the shipping company's delay in sending key documents caused the claim issues to be postponed. This situation complicated the determination of liability and damages. Ultimately, the shipping company negotiated with the help of ITIC to reach a commercial agreement and compensated $24,000 as half of the damages.
Mark Bratman, Claims Manager at ITIC, emphasized that "shipping companies are at the center of the information flow between owners and charterers. If documents or objections are not sent on time, these companies may themselves become part of the dispute, even if the original claim is weak."
This experience demonstrates that for shipping companies, accuracy in the timing of document submission and follow-up on claims is crucial. Demurrage claims typically have limited contractual timeframes, so prompt submission of documents and maintaining records of when this is done can be effective in preventing additional costs.
