Lien Clause

According to the lien clause, if charterer has failed to make payments due to the shipowner under the terms of the charter-party, shipowner has a right of lien on the cargo. Shipowner may retain the cargo on board or in a warehouse ashore until the outstanding payment is made. Under common law, this is called Possessory Lien. Lien Clause extends this to cover not only nonpayment of freight but also dead freight, demurrage, damages for detention, and general average (GA) contributions due to the shipowner.