When is Demurrage Payable?

Gencon 94 at Clause 7 states ‘Demurrage shall fall due day by day and shall be payable upon receipt of the owners’ invoice.’ In this case an owner is entitled to submit an invoice every day for as long as the vessel is on demurrage. Clearly where there are long delays and large amounts of demurrage incurred the owner may want to do so to ensure that the charterer becomes liable immediately. In practice a claim is submitted at the end of the voyage and, after a period of negotiating the details and amount, agreement is reached and one payment made for the entire claim. Absent the Gencon wording, it is generally accepted that demurrage is payable day by day. However some charterparties will include express terms about the timing of payment which will need to be examined on a case-by-case basis.