Free time demurrage

SladjanaSkakic · Post by **SladjanaSkakic** » Tue Mar 22, 2011 12:00 am

Your kind opinion in this question will be much appreciated.

L/C states under Additional Conditions:
Free time demurrage for container is allowed

B/L states:
14 days free time demurrage for container allowed

Would you accept it and if not - why?

Thanks in advance for all comments.

Br,

NigelHolt · Post by **NigelHolt** » Tue Mar 22, 2011 12:00 am

Given the way it is apparently phrased (“Free time demurrage for container is ALLOWED”), without seemingly making any reference to the bills of lading, this does not seem to be a ‘condition’ and therefore not to add anything to the credit at all. However, if I am wrong and it is it a condition, it seems to me to be a non-documentary condition and I do not see any conflict between it and the BL presented.

SladjanaSkakic · Post by **SladjanaSkakic** » Wed Mar 23, 2011 12:00 am

Thank you for replaying.

It is stated under additional conditions. Furthermore statement is that "Free time demurrage... is allowed", i.e. not "required."
As it is non-documentary condition, the B/L does not need to state it, but if a document states a non-doc. condition, it must comply with the letter of credit.
The question was whether "14 days free time demurrage ..." is in conflict with "Free time demurrage ..."
Some plead for the fact that 14 days is a limitation and some that "Free time demurrage for container is allowed" is a information where "allowed" gives vent to show any periode of time.
Personaly, I do not see either any conflict between it and the BL presented.
All comments are welcome.

[edited 3/23/2011 10:37:44 AM]

NigelHolt · Post by **NigelHolt** » Thu Mar 24, 2011 12:00 am

I remain unconvinced this is a condition of any kind, notwithstanding it being included under additional conditions.

Nonethless, should it be a NDC I certainly see no conflict between it and the BL because free time demurrage has been allowed according to the BL. The fact that there is a limit to that free time is neither here nor there.
[edited 3/24/2011 1:41:49 PM]