LEGAL PROBLEMS ON DEMURRAGE IN VOYAGE CHARTERS

Abstract

Demurrage is a term concerned with delay during the terminal operations, and delays during the voyage, before the ship reaches her destination. The current view is that demurrage is liquidated damages for a failure to complete loading and discharging in the allowed laytime which constituted a breach of charter. Maritime transport has the importance to Thailand, however there is no specific Thai law concerning demurrage. Therefore, when an issue concerning demurrage arising from maritime transportation is submitted to Thai court, there are problems in Thai legal system concerning the application of charter contract, status of demurrage, difference of each legal status, burden of proof. In particular, the crucial problems are whether the Thai court is entitled to reduce demurrage agreed by the parties and why, whether Thai court is entitled to grant the interest, lastly, if the parties do not agree on demurrage, whether the shipowner is entitled to ask for demurrage and why. Moreover, in this article, we will look at demurrage in an Unfair contract perspective according to Unfair Contract Act B.E. 2540. On the question of whether the agreement of the parties to pay demurrage is deemed as an unfair contract. This new image of perspective will reduce the burden of the consumer and the charterer who may have the liability to pay for demurrage.