| Rule # |
Description |
Effective |
Expiry |
|
21 |
Free Time and Demurrage |
1-May-2006 |
|
21.1 General
After the expiration of the free time, demurrage charges will be assessed on the cargo and/or container as provided herein.
Where there are multiple container provisions, such provisions are applicable to all cargoes, provided such cargoes are of the same commodity and are consigned to one consignee at one port of destination from one vessel, regardless of the number of Bills of Lading.
Cargo freighted on a per unit or lump sum basis will be assessed destination charges on a weight or measurement basis, whichever creates the higher charge. (Destination charges include cargo demurrage equipment detention, transfer, stripping, storage, etc.)
For Reefer Cargo
Upon expiry of Free Time, carriers are not permitted to absorb any additional charges, and all charges imposed by the terminals, including but not limited to storage, electricity, and any other applicable charges, shall be for the account of the cargo.
21.2 Origin Free Time and Demurrage
General
When cargo is shut out due to conditions beyond shipper's control or when the vessel is cancelled or delayed, carrier shall absorb all storage charges and the handling costs from time of receipt provided the cargo is loaded to the carrier's next scheduled vessel. However, if the cargo has already incurred demurrage charges for the period up to the originally scheduled vessel sailing date, then shipper shall be liable for such demurrage and carrier shall only absorb charges and costs from the date of the originally scheduled vessel sailing.
Payment of accrued storage charges must be received by carrier prior to release of laden on board Bills of Lading.
Withdrawal of Export Shipment
In the event that shipper delivers a loaded container to the carrier, but subsequently cancels the shipment prior to vessel's departure, all charges incurred, from the time of cancellation, including but not limited to lift on/lift off, and storage charges, shall be for account of cargo and shall be assessed in accordance with local terminal tariffs.
In the event that the shipper delivers an empty container to the carrier and cancels the shipment prior to vessel's departure, all charges incurred by the carrier shall be for account of shipper and shall be assessed in accordance with local terminal tariffs.
Shipments held at Carrier's loading port terminal prior to loading
If at any time prior to loading aboard Carrier's vessel, Shipper instructs Carrier not to load the shipment aboard the first available vessel, the shipment will be subject to a daily demurrage charge as stated in this rule.
Alternatively, upon receipt of Shipper's instructions, Carrier reserves the right to unload the cargo from the container and transfer to it to public storage. All storage and transfer costs incidental to the removal of cargo from Carrier's containers shall be at the risk and expense of the cargo.
21.3 Origin Free Time and Demurrage
General
All containers held with cargo at carrier's discharge port marine terminal, destination rail yard or destination CY will be subject to demurrage charges as indicated in the following sections of this rule, whether the shipment therein occupies a full container or not.
Free time and demurrage at destination on non-containerized cargo, and containerized CFS cargo shall be in accordance with the local terminal tariffs, as applicable.
Warehousing and Carrier's Lien after Expiration of Cargo Free Time
After expiration of cargo free time, CY or CFS cargo may be warehoused, sold or held in carrier's container subject to the carrier's lien for charges including accumulated cargo demurrage charges and those charges incidental to placing the goods in storage or of selling the goods as the case may be. In respect to cargo in carrier's containers for CY delivery at port of destination, the carrier also has the option, after the expiration of 48 hours notice to consignees, to discharge such cargo from the containers and transfer the cargo to the carrier's CFS at the risk and expense of the consignees, said expense to be the CFS charge provided in Rule No. 19. Such cargo shall immediately be subject to cargo demurrage charges as applicable to CFS cargo in accordance to the provisions in this rule.
Delays Beyond Carrier's Control
Carrier shall not be responsible for delays in delivering cargo or containers and any cargo demurrage charges that accrue are for the account of the cargo.
Work stoppages at a terminal due to labor disputes, extreme weather conditions, or other force majeure situations preventing discharge or delivery of cargo or containers shall be excluded from the calculation of cargo and equipment free time for the period of the work stoppage. Carrier may require documented evidence of such disruptions.
When shipments are held at Carrier's interchange port or bill of lading discharge port pursuant to instructions from merchant, or his agent; or shipment is not interchanged to inland carrier by reason of, but not limited to, delays in processing documentation requirements of governmental agencies beyond the control of the Carrier for period in excess of the free time, all demurrage charges which may have accrued prior to the removal of the shipment from Carrier's Terminal shall be assessed and collected from the Merchant or his agent.
Carrier Inability to Tender Cargo For Delivery
When the carrier is for any reason unable to tender cargo for delivery during free time, free time will be extended for a period equal to the duration of the carrier's inability to tender the cargo. If such condition arises after the expiration of free time, no demurrage or first period demurrage will be charged for a period equal to the duration of the carrier's inability to tender the cargo.
Consignee is Prevented from Removing Container
Where the Consignee is prevented from removing his container(s) by factors beyond his control, such as, but not limited to, longshoreman's strikes, trucking strikes or weather conditions which affect the port area or a substantial portion thereof, free time shall be extended for a period equal to the duration of the consignee being prevented from removing container.
Delays Due To Regulatory Inspection And/Or Quarantine
The carrier shall not be responsible for delays in delivering containers when such delays result from cargo being detained due to regulatory inspection and/or quarantine. Any demurrage charges that are accrued resulting from delays due to regulatory inspection and/or quarantine are to be billed for account of the cargo.
Diversion Instructed by Merchant
In the event Merchant instructs Carrier to divert and re-consign the shipment to a port, or a point and/or Consignee other than the port or point and/or Consignee shown on original bill of lading, diversion rules and charges shall apply, in addition to all other applicable charges. All demurrage charges, which may have accrued prior to such instructions, shall be assessed and collected from the party who instructs the Carrier.
21.4 Origin/Destination Free Time and Demurrage
Free Time and Demurrage of Asia-Pacific can be found in below link.
Asia-Pacific Local Surcharges, Arbitraries, Detention and Demurrage Charges