Pacific Coast

Basically, his ship must have arrived and that means that the carrying stage of the voyage must have ended. For the purposes of determining arrival in this particular legal context a distinction can be made between what is known as a port charter party and a berth charter party. A berth charter party is one under the terms of which the vessel is consigned to a designated berth within some port. Not until the ship is berthed (even if it has to wait to do so) can the notice of readiness be presented. A port charter party, on the other hand, stipulates only the port or ports to which the ship is to proceed and so a test has to be devised to determine the point in the port area which the ship should have reached to “qualify” it as having arrived. The modern test is the “Reid Test” set out in The Johanna Oldendorff (1973) which held that the ship should have reached an anchorage within the port where ships customarily wait for the type of berth for which they are nominated and should be at the immediate and effective disposal of the charterer. The charter may contain an exclusion clause which purports to exclude liability for demurrage. In The John Micholas (1987) a typed addition to a charter in the Pacific Coast Grain form provided by clause 62 that ‘Charters shall not be liable for any delay in… discharging… which delay… is caused in whole or in part by strikes…’ The vessel came on demurrage at the discharge port and was then delayed for 26 days by a strike of port workers. It was held that clause 62 did relieve the charterers from liability for demurrage.