Meaning
Contractual computation determines the cumulative liquidated damages owed for exceeding the allotted laytime during cargo operations. Daily demurrage accrual arithmetic follows the maritime principle that once a vessel is on demurrage, it remains on demurrage regardless of subsequent weather or weekend interruptions. The period of liability ends when the loading or discharging operation is complete and the connection to the shore facility is severed.
Calculation Logic
Monetary accumulation happens at a predetermined daily rate specified in the charterparty or sales contract. If the ship remains at the berth for ten days beyond the laytime, the daily demurrage accrual arithmetic simply multiplies the rate by ten. Partial days are calculated pro rata to the nearest minute.
Rate Duration
Time counting starts immediately upon the expiry of the laytime or after a specific notice period. Most daily demurrage accrual arithmetic ignores the usual exceptions for rain or holidays that apply during the initial laytime period. The risk of delay remains with the charterer until the vessel is released.
Settlement Obligation
Payment terms usually require the settlement of the accrued amount within thirty days of the invoice date. Documentation such as the statement of facts provides the evidentiary basis for daily demurrage accrual arithmetic. Accurate record keeping at the terminal prevents disputes over the exact moment the debt began to accrue.
Verification of port logs remains the primary method for auditing these financial claims.
