ABSTRACT
If the arbitrators are invited to follow the second or third of the above approaches, that may involve an assessment of market rates at wherever the delay occurred or wherever the vessel ended up on redelivery at the end of the charter. Furthermore, the period of delay may only be a few days or something even shorter. In those circumstances, there may be no fixtures of a comparable vessel by which the market rate for such a vessel can be ascertained, which would leave the tribunal with no option but to base their assessment of
charters, often known as ‘‘despatch business’’, where there is a relatively high demurrage rate, which the parties know will never become payable, because it is probable that despatch will be earned, probably at half the demurrage rate. Whilst this will result in relatively generous despatch becoming payable to the charterers, it might be unfair for them to be asked to pay damages for detention at the enhanced demurrage rate in the charter. In those circumstances, it is suggested that it would be open to the tribunal to apply a reduction in the demurrage rate to more truly reflect the losses suffered by the owners for the detention of the vessel.
