Laytime And Force Majeure

• Published date: 26 February 2021
• Subject Matter: Litigation, Mediation & Arbitration, Coronavirus (COVID-19), Arbitration & Dispute Resolution, Litigation, Contracts and Force Majeure
• Law Firm: Lester Aldridge LLP
• Author: Linda Jacques

A recent London arbitration decision has examined the interplay between laytime and a force majeure clause. The issues addressed highlight how difficult it is to effectively use a force majeure clause. In the case, the Charterers had chartered a ship on the Synacomex 2000 Form to carry a cargo of corn.

After loading, the Owners' claimed demurrage in the sum of USD108, 536.32, after giving credit for periods of weekend holiday, shifting and the initial draft survey. The Charterers' argued that there were additional periods when laytime should not run because they claimed events fell into the force majeure clause. On their calculations, the demurrage started at a later date, than the one used by the Owners.

Clause 8 of the charterparty provided that "any delays caused by ice, floods, quarantine or by cases of force majeure shall not count as laytime unless the vessel is already on demurrage."

The Charterers' relied upon a couple of events. The first event they claimed fell into the clause, was the period of delay in the cargo reaching the vessel, which resulted in the loading having to be suspended. The cargo had to be transported to the port by barges, which travelled in a convoy by river. The Charterers' claimed that as there had been unusually low water levels in the...