Damages for Detention

If the charterer delays (or “detains”) the ship by loading or discharging in a longer time than agreed or for any other reason, he has breached the contract and must compensate the shipowner. Normally, if the Charterer exceeds the laytime allowed in the charter, he pays compensation at an agreed rate of demurrage. However, if demurrage is not agreed at the time of entering into the contract, or if the agreed excess time more than the agreed laytime is exceeded, damages for detention is the name given to the compensation.