Demurrage Payments Under Kuwaiti Law

Analysis

In modern, global trade, sea-going ships are the foremost mode of transportation because they are a cost-effective and safe way to transport cargo around the world. Shipping carriers achieve their profits on the services presented in handling the containers in which cargo is shipped.

Due to the risk of the shipper or the consignee failing to return containers back to the shipping carrier empty, all shipping lines have stipulated in their bills of lading (B/L) (which govern the relation between the shipper, carrier, and the consignee) a specific condition concerning demurrage. This condition applies to the merchant (shipper/consignee) and stipulates who shall be charged fees arising from fault or negligence in not returning the containers back empty to the carrier. Shipping lines are keen to impose such a condition because such malpractice by the merchant results in enormous losses to the carrier who will be unable to exploit its containers.

The essential role of the bill of lading