chapter  3
18 Pages

LAYTIME AND DEMURRAGE IN CIF AND FOB CONTRACTS

However, voyage charterparties and sale contracts are rather different contracts, and the incorporation of provisions from the former may not always fit comfortably with the structure of the latter. In CIF and FOB sales contracts, a delivery period will be agreed within which the seller must complete loading. This obligation is a condition. As regards discharge, this will not concern the FOB seller whose obligations under the contract will be fulfilled with the shipment of the cargo within the delivery period. It is also unlikely that the CIF seller will have any obligation in respect to the discharge of the vessel. In contrast, the obligations as regards loading and discharging under a voyage charter are such that on completion of the approach and carrying voyages, the charterer is to load and discharge the full cargo specified in the charter within the agreed laytime. Compensation for breach of this obligation, which by contrast is an innominate term rather than a condition, is exclusively by way of the demurrage provisions in the charter.