Clifford Chance

Pandemic, Port Bottlenecks and Depleted inventories – The role of demurrage clauses as a mechanism for risk allocation in voyage charter parties

21 February 2022

The continued pandemic-induced global crises in international trade has seen commercial parties focussing their attention on contractual risk allocation mechanisms. Many have sought refuge in liquidated damages clauses, such as demurrage clauses in voyage charter parties. Counterparties should give careful consideration when negotiating and drafting their commercial terms and conditions, paying particular attention to the scope and operation of such clauses.

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