Charterparty Strike Clause

Charterparty Strike Clause is an important Charter Party provision because strikes, lockouts, labour stoppages, port disruptions, terminal shutdowns, transport interruptions, and other industrial actions can delay a ship, interrupt cargo operations, affect laytime, increase demurrage exposure, and sometimes prevent the voyage from being performed in the ordinary way. A strike clause is designed to allocate the commercial consequences of strike delay between Shipowners and Charterers before the dispute arises.

A strike may appear to be a local labour problem, but in ship chartering it can become a major contractual issue. A ship may arrive at a loading port and be unable to berth. Cargo may be ready but stevedores may refuse to work. A discharging terminal may be closed. Tug crews or pilots may be unavailable. Railway workers or truck drivers may stop moving cargo to the terminal. Canal workers may suspend operations. Receivers may be unable to take delivery. Each situation can raise different questions under the Charter Party.

A Voyage charter-party usually contains a strikes clause because voyage chartering depends heavily on the timing of loading and discharging. The Shipowner has committed the ship to a particular voyage for freight. The Charterer has undertaken to provide or receive cargo within agreed laytime. When strike action prevents cargo work, the parties need to know whether time counts, whether demurrage is payable, whether the ship may be sent elsewhere, and whether either party has a cancellation right.

A strikes clause deals with delays and other problems arising as a result of strikes at loading ports, discharging ports, cargo terminals, roads, rail systems, inland transport points, waterways, canals, and other places that affect the voyage. The clause may be narrow or wide. It may cover only dock strikes, or it may cover strikes, lockouts, stoppages, labour disturbances, industrial action, refusal to work, and similar events beyond the parties’ direct control.

The purpose of a strikes clause is not simply to excuse delay. Its real purpose is to allocate risk. The clause may protect shipowners by ensuring they are compensated by the charterers for the delay of their ship. It may protect Charterers by excluding certain strike periods from laytime or by reducing the financial burden to a lower amount such as half demurrage. It may provide alternative-port rights. It may allow cancellation if strike conditions continue. The exact result depends entirely on the wording.

What is a Strike Clause?

What is a strike clause? A strike clause is a contractual clause in a Charter Party that explains what happens when a strike or labour disturbance prevents, delays, or interferes with the performance of the charter. The clause may apply to loading, discharging, port access, cargo supply, cargo delivery, canal transit, or other operational stages of the voyage.

A strike clause may answer several questions:

Does strike time count as laytime?
Does strike time count as demurrage?
Is demurrage reduced during strike delay?
Can Shipowners claim compensation for waiting?
Can Charterers cancel the fixture if the strike continues?
Can Shipowners proceed to another port?
Can Charterers nominate an alternative port?
Who pays extra costs caused by the strike?
What evidence is required to prove strike delay?
Does the clause apply only to direct strike time or also to congestion caused by strikes?

A strike clause should be read with the laytime clause, demurrage clause, Notice of Readiness clause, safe port clause, exceptions clause, force majeure clause, war risks clause, cancellation clause, and Charter Party form. Strike wording cannot be interpreted in isolation because strike delay may affect several contractual mechanisms at once.

Understand Voyage Charter Parties and Strike Clause

To understand the effect of a strike clause, it is first necessary to understand the structure of a voyage charter. In a voyage charter, the Shipowner agrees to carry a specified cargo from one or more loading ports to one or more discharging ports. The Charterer pays freight. The Charter Party normally gives the Charterer an agreed amount of laytime for cargo operations. If cargo operations exceed laytime, demurrage becomes payable.

Strike disruption affects this structure because it prevents the normal use of laytime. If loading cannot begin because stevedores are on strike, should the laytime clock run against Charterers? If the ship is already on demurrage when a strike begins, should demurrage continue? If the strike makes the nominated port commercially unusable, can the ship be ordered elsewhere? These are the practical questions that a voyage charter strikes clause must answer.

Strike clauses in voyage charter parties are therefore closely connected with time. Every hour of delay may have commercial value. A ship delayed by strike cannot earn freight on another voyage. A Charterer delayed by strike may miss a sale contract, terminal slot, or delivery deadline. The clause decides who bears this loss, or whether the loss is shared.

General Strike Clause

A General Strike Clause is a broad clause intended to deal with strike events in a practical and flexible way. A general strike clause may not be tied to one specific standard form. Instead, it may be drafted into the fixture recap or rider clauses to cover the strike risks that the parties consider relevant for the trade.

A well-drafted general strike clause should identify the events covered. It should state whether the clause applies to strikes only, or also to lockouts, stoppages, labour disturbances, industrial action, refusal to work, go-slow action, picketing, union disputes, port shutdowns, and government-supported work suspensions. If the parties want the clause to cover indirect cargo supply chain strikes, that should be stated clearly.

A general strike clause should also identify the places covered. A narrow clause may cover only loading and discharging ports. A wider clause may cover loading ports, discharging ports, terminals, anchorages, roads, railways, inland waterways, canals, locks, pilot stations, tug services, cargo storage areas, and connecting transport systems.

Finally, a general strike clause should state the legal consequence. It should explain whether time is excepted from laytime, whether demurrage continues, whether half-demurrage applies, whether cancellation is allowed, whether an alternative port may be nominated, and who pays additional costs.

BIMCO Strikes Clause

BIMCO Strikes Clause wording is commonly considered in modern Charter Party drafting because BIMCO clauses are widely used in international shipping to provide standardized commercial solutions. A BIMCO-style strikes clause is usually intended to create a clear framework for strike events, reduce uncertainty, and provide a balanced allocation of risk between Shipowners and Charterers.

A BIMCO strikes clause may address strikes affecting loading or discharging operations, strikes existing before arrival, strikes beginning after arrival, strikes delaying cargo handling, and strikes that continue beyond a stated period. Depending on the wording used, the clause may give Charterers an option to cancel, may allow Shipowners to require alternative instructions, or may regulate how time is counted.

The value of BIMCO-style drafting is that it tends to be more structured than casual rider wording. However, parties should not assume that the inclusion of a BIMCO clause automatically solves every problem. The clause must match the trade, the port, the cargo, and the rest of the Charter Party. If the BIMCO clause conflicts with rider clauses, laytime clauses, or demurrage clauses, the priority wording becomes important.

When using a BIMCO Strikes Clause, parties should check:

Which version of the clause is used.
Whether the clause applies to loading and discharging.
Whether the clause applies before and after laytime starts.
Whether the clause affects demurrage.
Whether cancellation rights exist.
Whether alternative port rights exist.
Whether the clause covers lockouts and labour disturbances as well as strikes.
Whether notice must be given.
Whether the clause conflicts with any special rider clause.

BIMCO Force Majeure Clause and Strike Events

BIMCO Force Majeure Clause wording may also become relevant where a strike is part of a broader event that prevents or delays performance. Force majeure clauses are designed to deal with events outside the reasonable control of the affected party, but they do not automatically excuse every difficulty. The event must fall within the clause, the party relying on the clause must satisfy the contractual requirements, and the effect of the clause must be applied according to its wording.

Strikes are often included in force majeure drafting, but a specific strikes clause may be more important than a general force majeure clause. If the Charter Party contains both, the parties must read them together. A specific strikes clause may allocate strike delay in a detailed way, while the force majeure clause may provide a broader excuse or suspension mechanism for other events.

The relationship between strike clauses and force majeure clauses can create disputes. For example, if the strikes clause says strike time counts at half demurrage but the force majeure clause says performance is suspended during force majeure events, which clause controls? The answer depends on contract hierarchy, drafting, and interpretation. Clear priority wording avoids this problem.

Parties should not use force majeure wording as a substitute for a proper strike clause if strike risk is commercially important. A dedicated strikes clause is usually more precise because it can deal directly with laytime, demurrage, alternative ports, and cancellation.

Strike Clauses and Laytime Disputes

Strike Clauses and Laytime Disputes are closely connected because strike delay often affects whether laytime runs or stops. Laytime is the agreed time allowed to Charterers for loading and discharging. If a strike prevents work, the parties must determine whether that period is excluded from laytime or counted against Charterers.

The wording may produce several different outcomes:

Strike time does not count as laytime.
Strike time counts as laytime.
Strike time counts only after Notice of Readiness is validly tendered.
Strike time counts if the strike was already known when the port was nominated.
Strike time is payable at half demurrage after laytime expires.
Strike time is excepted from laytime but not from demurrage.
Strike time stops both laytime and demurrage if expressly stated.

Many laytime disputes arise because the clause does not say clearly whether strike time is excluded before laytime begins, during laytime, or after demurrage has started. The legal result may differ depending on whether the ship has reached the agreed destination, whether Notice of Readiness is valid, whether the ship is on demurrage, and whether the strike is the effective cause of delay.

In voyage chartering, it is dangerous to assume that a strike exception automatically stops demurrage. If the parties intend strike time to stop demurrage, the clause should say so clearly. If the clause only refers to laytime, demurrage may continue once it has begun, depending on the contract and applicable law.

Strike Clause for Voyage Charter Parties

A Strike Clause for Voyage Charter Parties should be drafted with voyage charter mechanics in mind. It should address the position before arrival, after arrival, during loading, during discharge, and after laytime has expired. It should also specify whether the clause applies at both loading and discharging ports.

Important elements include:

Definition of strike and labour disturbance.
Application to loading and discharging ports.
Application to cargo supply chains and terminal operations.
Effect on Notice of Readiness.
Effect on laytime.
Effect on demurrage.
Alternative port rights.
Cancellation rights.
Expense allocation.
Notice and evidence requirements.

A voyage charter strike clause should avoid uncertainty. The parties should not wait until the ship is already delayed to discover that the clause does not address demurrage, alternative ports, or indirect strike consequences.

Centrocon Strike Clause

Centrocon Strike Clause wording has historically been important in grain and dry bulk chartering discussions because Centrocon-type clauses address strike delay in the context of voyage performance, loading, discharging, and related cargo operations. The commercial purpose is to prevent strike disruption from leaving one party unfairly exposed without a contractual mechanism.

Centrocon-style strike clauses are often examined because they may contain particular wording on strikes preventing loading, strikes interfering with discharge, and rights or consequences where strike events continue. In practice, the effect depends on the exact clause incorporated into the fixture. Parties should not rely on the label “Centrocon Strike Clause” alone; the full wording must be reviewed.

The key practical point is that Centrocon-type wording usually attempts to deal specifically with the effect of strikes on voyage charter obligations rather than leaving the issue to general exceptions. This can be useful where cargo operations are vulnerable to labour action, especially in grain, bulk commodity, and port-dependent trades.

GENCON and Strike Clauses

GENCON is a widely used standard voyage Charter Party form, and many fixtures based on GENCON include strike-related provisions. Depending on the version and amendments used, the strike clause may address what happens when a strike prevents or delays loading or discharging.

Some commercial arrangements using GENCON or GENCON-style wording provide that if a strike occurs during operations, the resulting time lost may be paid at half the demurrage rate. This is a compromise between full compensation for Shipowners and full exception for Charterers. It recognizes that strike delay may be outside Charterers’ direct control but still detains the ship.

However, printed form wording is often amended by rider clauses. Therefore, the final contract must be checked carefully. A rider clause may override the printed strikes clause, alter the half-demurrage position, expand the clause to cover lockouts, or restrict the clause to particular ports or operations.

Strikes Affecting Charterparties

Strikes Affecting Charterparties may disrupt more than cargo work. They can affect port entry, berth allocation, pilotage, towage, customs clearance, cargo documentation, terminal delivery, cargo storage, inland transport, canal transit, and final delivery to receivers. A strike in one part of the logistics chain can delay the entire voyage.

Examples include:

Stevedores refusing to load or discharge.
Terminal operators stopping work.
Port authority staff suspending services.
Pilots refusing assignments.
Tug crews striking.
Railway workers stopping cargo movement to the port.
Truck drivers blocking cargo delivery.
Customs staff delaying clearance.
Canal or lock workers suspending transit.
Refinery or mine workers stopping cargo production.

Each example may produce a different contractual result. A clause covering “strikes of stevedores” may not cover a railway strike unless the wording is wide enough. A clause covering “strikes at port” may not cover a mine strike inland. Therefore, parties should align the clause with the real commercial risks of the trade.

How Strikes Affect Charterparties

How Strikes Affecting Charterparties depends on timing, wording, and causation. The timing matters because a strike before arrival may raise different issues from a strike after loading begins. Wording matters because the clause decides whether time counts or is excepted. Causation matters because the party relying on the clause must usually show that the strike caused the delay.

Strikes may affect Charter Parties in the following ways:

They may delay the ship’s arrival at berth.
They may prevent valid Notice of Readiness.
They may stop laytime from starting.
They may interrupt laytime after it has started.
They may affect demurrage.
They may trigger cancellation rights.
They may permit nomination of an alternative port.
They may increase port costs and bunker consumption.
They may cause missed sale contract deadlines.
They may create Bill of Lading and documentation problems.

The commercial impact can be severe. A ship delayed by a strike may miss a follow-on fixture. Charterers may miss delivery obligations to cargo buyers. Receivers may face shortage of raw materials. Terminals may accumulate congestion even after the strike ends. The Charter Party should therefore make the consequences as predictable as possible.

The Impact of Strike in Voyage Charter

The impact of strike in a voyage charter is usually felt through laytime and demurrage. The Shipowner has committed the ship to carry a cargo for freight. The Charterer has the right to use agreed laytime for cargo operations. If a strike prevents loading or discharging, the dispute becomes a question of whether the Charterer’s laytime is protected or whether the Shipowner is entitled to compensation.

If the strike occurs before loading begins, the ship may be waiting without cargo onboard. The parties may need to decide whether to wait, cancel, or proceed to an alternative loading port. If the strike occurs after partial loading, the ship may be in a more difficult position because cargo is already onboard and the voyage cannot easily be abandoned.

If the strike occurs at the discharging port, the ship may be detained with cargo onboard. Receivers may not be able to take delivery. Bills of Lading may already have been issued. Sale contract deadlines may be affected. The Shipowner’s ship may be trapped waiting for work to resume. This is why discharge strike wording can be as important as loading strike wording.

The Impact of Strike in Time Charters

The impact of strike in time charters is different because time charter is based on hire rather than freight and laytime. The Charterer pays for the use of the ship over a period. The Shipowner provides the crewed and managed ship. If a strike delays cargo operations or port movement, the key question is usually whether the ship remains on hire or whether an off-hire clause applies.

In many time charter situations, a strike affecting cargo operations may be a commercial risk for Charterers. The ship may remain on hire because the delay is not caused by the Shipowner’s failure or by an off-hire event. If stevedores, terminals, or receivers are on strike, Charterers may continue paying hire while the ship waits, unless the Charter Party provides otherwise.

However, if the strike affects the ship’s crew or prevents the ship from performing due to an owner-related matter, the analysis may differ. For example, if crew refusal, deficiency of crew, or shipboard labour issue prevents performance, off-hire may arise depending on the clause. Time charter strike risk therefore turns on the off-hire wording, employment orders, causation, and allocation of operational versus commercial risk.

Voyage Charter vs Time Charter Strike Risk

Strike risk works differently in voyage charter and time charter. In voyage charter, the dispute usually concerns laytime, demurrage, exceptions, and alternative ports. In time charter, the dispute usually concerns hire, off-hire, employment orders, port costs, bunkers, and whether the delay is a Charterer’s commercial risk or an Owner’s performance risk.

Issue	Voyage Charter	Time Charter
Main payment	Freight	Hire
Delay mechanism	Laytime and demurrage	Hire and off-hire
Strike at cargo terminal	May affect laytime/demurrage under strikes clause	Often Charterers’ commercial risk unless off-hire applies
Strike before loading	May trigger cancellation or alternative port rights	May leave ship waiting on hire depending on orders
Strike during discharge	May create demurrage or excepted time dispute	May keep ship on hire unless off-hire clause applies
Key clause	Strikes clause and laytime wording	Off-hire clause and employment wording

War Risks Clause for Voyage Charter Parties

War Risks Clause for Voyage Charter Parties is not the same as a strikes clause, but both may become relevant where port disruption, labour action, civil unrest, political instability, or conflict affects the voyage. A war risks clause deals with war, hostilities, armed conflict, piracy, terrorism, blockade, sanctions-related risks, mines, attacks, or other warlike dangers depending on the wording.

A strike clause addresses labour disruption. A war risks clause addresses security and conflict risks. However, real events may overlap. For example, political unrest may lead to port strikes. A war or blockade may cause port labour to stop work. A government order may shut a terminal. In such cases, the parties must determine which clause applies and whether one clause takes priority.

War risks clauses may allow Shipowners to refuse to proceed to a dangerous area, require additional insurance, claim extra costs, deviate, or discharge cargo at another port. Strike clauses may allow waiting, cancellation, alternative port nomination, or adjusted laytime treatment. Both clauses should be drafted so they do not conflict.

Strike Clause vs War Risks Clause

The difference between a strike clause and a war risks clause is the nature of the event. A strike clause focuses on labour action and industrial disruption. A war risks clause focuses on conflict, danger, and security threats. The legal consequences may be different.

If dock workers stop work for wage reasons, the strikes clause is likely to be the relevant clause. If workers stop because the port is under attack or because war conditions make work unsafe, the war risks clause may also be relevant. If both clauses could apply, the Charter Party should be reviewed to decide which clause provides the controlling remedy.

Strike Clause vs Exceptions Clause

Some Charter Parties include a general exceptions clause covering events such as strikes, lockouts, riots, restraint of princes, perils of the sea, breakdowns, or other causes beyond control. A specific strike clause may exist alongside this general exceptions clause.

A specific strike clause is usually more useful because it can state the direct effect on laytime and demurrage. A general exceptions clause may not be enough to stop laytime or demurrage unless it is clearly connected to those mechanisms. Parties should avoid assuming that an exceptions clause automatically protects them from strike consequences.

Strike Clause vs Frustration

A prolonged strike may raise questions about frustration, but frustration is a high threshold. A contract is not frustrated merely because performance becomes more expensive, delayed, or inconvenient. If the Charter Party contains a strike clause, the clause may be treated as the parties’ agreed method for handling strike risk, making frustration harder to argue.

Frustration may only become relevant where the strike or its consequences make performance radically different from what was agreed, and the contract does not adequately allocate the risk. In most chartering cases, parties should look first to the strikes clause, cancellation clause, force majeure clause, and other contractual remedies.

Strike Delay Before the Ship Arrives

If strike action exists before the ship arrives, the parties must examine whether the port nomination remains valid and whether the ship should proceed. If Charterers know the port is strike-bound but still nominate it, Shipowners may seek protection by stating that time lost will count or by relying on the strikes clause.

If the strike begins after the fixture but before arrival, the clause may give options. Charterers may have the right to cancel, nominate another port, or order the ship to wait. Shipowners may have the right to cancel after a defined period or proceed to another safe port if the clause allows.

Strike Delay After Notice of Readiness

If the ship tenders Notice of Readiness and strike action prevents cargo work, disputes may arise over whether the Notice of Readiness is valid and whether laytime has started. The answer may depend on whether the ship is an arrived ship, whether it is ready in all respects, and whether the Charter Party permits Notice of Readiness at anchorage or waiting place.

A strikes clause may modify the normal result by stating that time counts even if operations cannot begin due to strike. Alternatively, it may exclude strike time from laytime. The wording must be checked.

Strike Delay During Laytime

If a strike begins after laytime has started, the question is whether laytime continues to run. A clause may stop laytime during strike periods, allow laytime to continue, or treat part of the time differently. Where strike periods are intermittent, detailed time records are essential.

Statements of Facts should record when work stopped, when work resumed, how many gangs were available, whether loading or discharging continued partially, and whether other causes such as weather or congestion also contributed to the delay.

Strike Delay After Demurrage Starts

If laytime has expired and the ship is already on demurrage, strike delay becomes especially contentious. The traditional commercial expectation is that demurrage compensates Shipowners for detention. However, a strike exception may or may not interrupt demurrage depending on wording.

If parties want strike time to stop demurrage, the clause should clearly say so. If parties want strike time to be paid at half the demurrage rate, that should be expressly stated. If the clause refers only to laytime, it may not be enough to stop demurrage after it begins.

Alternative Port and Strike Clauses

Under a strikes clause, if the strike occurs during loading or before loading can begin, parties may have a right to order the ship to proceed to an alternative port. The commercial purpose is to avoid indefinite delay and preserve the voyage by using another port where cargo can be loaded or discharged.

Alternative port wording should identify who has the right to nominate the alternative port, how quickly the nomination must be made, whether the port must be within a named range, who pays extra steaming, who pays additional port costs, and whether freight changes. Without this detail, an alternative port option may itself become a dispute.

Strike-Affected Port Nomination

If the Charterer nominates a port where a strike is already occurring, Shipowners should protect their position. The Charter Party may state that time lost caused by the strike counts as laytime or demurrage. Alternatively, Shipowners may reserve rights or require a different nomination if the port is not commercially workable.

Charterers should avoid nominating a strike-affected port without understanding the contractual consequences. If the nominated port cannot load or discharge the ship, Charterers may face demurrage, damages, alternative port costs, or cancellation exposure depending on the clause.

Causation in Strike Claims

A party relying on a strikes clause must usually show that the strike caused the relevant delay. It is not enough to show that a strike existed somewhere in the port. The strike must have prevented or delayed the relevant operation.

If the ship was delayed by bad weather, lack of cargo, berth congestion, equipment breakdown, customs delay, or documentation problems, the strike clause may not apply unless those problems were caused by the strike and covered by the clause. Causation evidence is therefore essential.

Evidence for Strike Delay

Evidence may include port notices, terminal circulars, union notices, agents’ reports, stevedore statements, pilots’ notices, tug availability records, Statement of Facts, time sheets, Master’s letters of protest, emails from terminals, and local authority announcements.

The evidence should show when the strike started, what work was stopped, whether any operations continued, when normal work resumed, and how the delay affected the ship. Accurate evidence is especially important where the strike was intermittent or where multiple causes of delay existed.

Strike and Statement of Facts

The Statement of Facts is a key document in strike-related laytime disputes. It should record arrival, tender of Notice of Readiness, berthing, commencement of cargo operations, stoppages, resumption of work, completion, and departure. If strike time is involved, the statement should identify the exact strike periods.

If the Statement of Facts simply says “strike” without times or details, disputes may follow. Better wording records “stevedores stopped work due to strike from 0800 to 1800” or “no cargo operations due to port-wide strike.” Precision helps later laytime calculation.

Strike and Bills of Lading

Strike delay can affect Bills of Lading because shipment dates, cargo availability, and sale contract deadlines may be affected. Charterers may face pressure to issue documents that satisfy letters of credit or sale contracts. Shipowners and Masters must be careful not to sign documents that misstate cargo condition, quantity, or date.

A strike does not justify improper Bill of Lading practices. If cargo was not loaded on a particular date, documents should not falsely state otherwise. Legal and P&I advice may be needed where documentation issues arise.

Strike and Cargo Readiness

A strike may affect cargo readiness. Cargo may be unable to reach the loading port because railway workers, truckers, miners, factory workers, customs officials, or terminal staff are on strike. Whether this protects Charterers depends on the Charter Party. A clause covering only port stevedore strikes may not protect a cargo shortage caused by an inland labour dispute.

Charterers should ensure the strikes clause is wide enough to cover the cargo supply chain if that is a real risk. Shipowners should resist overly broad wording if it leaves the ship exposed to many remote delays without compensation.

Strike and Receiver Delay

At discharge, receivers may be affected by strikes at the terminal, warehouse, factory, railway, or truck gate. If receivers cannot take cargo, the ship may be delayed. The Charter Party must decide whether this is Charterers’ risk, receiver risk, or an excepted strike delay.

In many voyage charters, Charterers remain responsible for discharge arrangements even if receivers are separate commercial parties. Charterers should therefore coordinate receiver approval and strike risk before fixing.

Strike and Port Congestion

Strikes often create port congestion. Even after labour returns to work, many ships may remain waiting. The question then becomes whether post-strike congestion is still caused by the strike. Some clauses may cover only the direct strike period. Others may cover delay resulting from strikes.

If parties want post-strike congestion to be included or excluded, they should say so. Otherwise, arguments may arise over whether the strike remained the effective cause of the ship’s waiting time.

Strike and Slowdowns

Not every labour disruption is a full strike. Workers may engage in go-slow action, work-to-rule, refusal of overtime, partial stoppages, or intermittent protests. A narrow clause referring only to “strike” may not cover these events. A wider clause referring to strikes, lockouts, stoppages, slowdowns, or labour disturbances may provide broader protection.

In ports where labour disruptions are frequent, parties should draft the clause to include the specific types of industrial action that may affect operations.

Strike and Lockouts

A lockout is usually an employer-driven stoppage, where the employer prevents employees from working during a labour dispute. Some strike clauses include lockouts. Others do not. The distinction matters because delay caused by a lockout may not fall within a clause limited to strikes by workers.

If the parties want the clause to cover both worker and employer labour action, “strikes, lockouts, stoppages or labour disturbances” should be considered.

Strike and Partial Cargo Operations

Sometimes a strike does not stop all operations. One berth may work while another does not. One shift may work while another refuses. One cargo may be handled while another cargo is blocked. Partial operations create difficult laytime questions.

The clause should be applied to the actual time lost. If some work continued, the parties may need to calculate whether the ship was delayed and by how much. Detailed port records are essential.

Strike and Cancellation Rights

Some strike clauses allow cancellation if strike delay continues beyond a defined period. This prevents indefinite waiting. The clause may allow Charterers to cancel if loading is impossible, or Shipowners to cancel if the ship is detained too long.

Cancellation rights should specify when the clock starts, how long the waiting period lasts, who may cancel, how notice must be given, and what happens to costs already incurred. Without clear wording, cancellation itself can become disputed.

Strike and Deviation

If a strike blocks a canal, waterway, or port, the ship may need to deviate. Deviation can increase bunkers, time, insurance, and port costs. The Charter Party should state whether deviation is permitted and who pays for it.

In voyage charter, Shipowners usually price the expected route into freight. If Charterers’ orders or strike conditions require a different route, additional compensation may be disputed. In time charter, Charterers often bear bunker and voyage expense consequences because they direct employment.

Strike and Additional Expenses

Strike delay can generate additional expenses such as extra bunkers, port dues, anchorage charges, agency fees, security costs, crew overtime, tug standby, pilot cancellation fees, cargo storage, and surveyor attendance. A strikes clause should state whether these costs are for Shipowners, Charterers, or shared.

Demurrage may not cover every expense unless the contract says so. Parties should not assume that delay compensation automatically includes all additional costs.

Strike and Safe Berth/Safe Port

If a strike creates physical danger, violence, blockade, or inability to leave, safe port and safe berth obligations may become relevant. A port is not unsafe merely because it is delayed, but labour unrest can become a safety issue if it exposes the ship, crew, or cargo to danger.

Charterers should consider whether nominating a strike-affected port creates safe port concerns. Shipowners should document any safety-related objections promptly.

Strike and Sanctions or Government Measures

Sometimes labour action is connected with government policy, sanctions, embargoes, export restrictions, or political decisions. A port workforce may refuse to handle cargo from a particular country or company. A government may restrict work at a terminal. The issue may involve both strike wording and sanctions or lawful-trade clauses.

Parties should identify the true cause of delay. If the delay is caused by lawful government restraint rather than a labour strike, a different clause may apply.

Strike Clause Drafting Checklist

Define strike, lockout, stoppage, slowdown, and labour disturbance.
State whether the clause applies at loading ports.
State whether the clause applies at discharging ports.
State whether the clause applies to canals, waterways, and transit areas.
State whether the clause applies to cargo supply chain strikes.
State whether time counts as laytime.
State whether demurrage continues during strike delay.
State whether half-demurrage applies.
State whether alternative port nomination is permitted.
State who pays additional costs.
State cancellation rights and deadlines.
State notice requirements.
State evidence requirements.
State whether post-strike congestion is covered.
Check consistency with force majeure, war risk, and exceptions clauses.

Shipowners’ Checklist for Strike Risk

Check strike risk before accepting the port.
Confirm whether time counts during strike delay.
Check whether demurrage is protected.
Confirm whether half-demurrage applies.
Preserve alternative port rights.
Obtain port evidence immediately.
Issue letters of protest where appropriate.
Ensure the Statement of Facts records strike periods.
Protect follow-on fixture position.
Review whether strike delay causes extra expenses not covered by demurrage.

Charterers’ Checklist for Strike Risk

Check labour conditions at loading and discharging ports before nomination.
Confirm cargo availability despite strike risks.
Ensure the clause protects Charterers from uncontrollable strike delay.
Check whether strike time is excepted from laytime.
Check whether demurrage is reduced or suspended.
Review alternative port options.
Coordinate with shippers, receivers, terminals, and agents.
Preserve evidence that delay was caused by strike.
Give required notices promptly.
Check sale contract and Bill of Lading consequences.

Common Mistakes in Strike Clause Disputes

Common mistakes include assuming that all strikes automatically stop laytime, assuming that demurrage is always interrupted, failing to distinguish strike delay from congestion, failing to prove causation, relying on vague port rumours, failing to record actual stoppage times, and ignoring the interaction with force majeure or war risk clauses.

Another common mistake is using a printed form without checking rider amendments. A rider clause may completely change the effect of the printed strikes clause. The final Charter Party must be read as a complete contract.

A further mistake is failing to address indirect strike effects. A stevedore strike at the berth is obvious, but a railway strike preventing cargo from reaching the port may be just as disruptive. If indirect disruption matters, the clause should say so.

Practical Example: Strike at Loading Port

A bulk carrier is fixed to load grain at a nominated port. Before arrival, stevedores begin a strike. The ship arrives and tenders Notice of Readiness at anchorage. No berth is available because cargo operations are suspended. The Charter Party contains a strikes clause excluding strike time from laytime but does not address demurrage.

The key questions are whether Notice of Readiness is valid, whether laytime starts, whether strike time is excluded, and what happens if laytime later expires. If the clause excludes strike time only from laytime, the Shipowner may argue that demurrage runs after laytime expires unless the clause clearly stops demurrage. Charterers may argue that the strike exception should protect them. The dispute turns on wording.

Practical Example: Strike During Discharge

A tanker arrives at the discharging port and begins discharge. After several hours, terminal workers strike. Discharge stops for two days. The Charter Party provides that time lost by strike during operations is payable at half the demurrage rate. In this case, the parties may calculate the strike delay according to the clause rather than treating it as full demurrage or fully excepted time.

The Statement of Facts must show the exact stoppage period. If pumping was also delayed by ship equipment or shore tank problems, causation must be separated. Only the time truly lost due to strike should be treated under the strike provision.

Practical Example: Strike in Canal Transit

A ship is fixed to sail through a canal, but canal workers strike and traffic is suspended. The ship waits outside the canal. If the Charter Party strikes clause applies to canals and waterways, the delay may be handled under that clause. If the clause applies only to loading and discharging ports, the parties may need to examine other clauses such as force majeure, exceptions, routeing, deviation, or war risk clauses.

This example shows why strike clauses should identify not only the event but also the places covered.

Conclusion: Charterparty Strikes Clause

Charterparty Strikes Clause wording is essential because strikes can affect loading, discharging, cargo readiness, port access, canal transit, laytime, demurrage, freight economics, and the performance of both voyage and time charters. A Voyage charter-party usually contains a strikes clause because the ship’s time is valuable and cargo operations are vulnerable to labour disruption.

BIMCO Strikes Clause wording, General Strike Clause drafting, Centrocon Strike Clause wording, GENCON strike provisions, BIMCO Force Majeure Clause wording, and War Risks Clause for Voyage Charter Parties may all become relevant depending on the trade and the contract. The parties should not rely on clause names alone. The exact wording controls the result.

The main questions are whether time lost counts as laytime, whether demurrage continues, whether half the demurrage rate applies, whether the ship may proceed to an alternative port, whether Charterers may cancel, whether Shipowners are compensated by the charterers, and whether the delay was truly caused as a result of strikes.

A strong strikes clause should define the event, identify the places covered, explain the effect on laytime and demurrage, deal with alternative ports, allocate extra expenses, set notice duties, require evidence, and coordinate with force majeure, war risks, safe port, and exceptions clauses. Clear drafting is the best way to reduce strike-related disputes and give both Shipowners and Charterers predictable commercial protection.

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