474. President of India v Lips Maritime Corporation (the “Lips”) [1987] 2 Lloyds Rep 311

Late payment of demurrage (calculated in US Dollars and paid in British Pounds) causing loss because of weakening of Pound – owners’ only remedy interest on demurrage

The Facts

Di-ammonium phosphate was shipped from Louisiana to India.

Demurrage was incurred and short paid by the charterers.

Pursuant to the terms of the charter, demurrage was to be calculated in US Dollars and paid in Pounds Sterling at the rate of exchange prevailing at the date of the bills of lading. The short payment of demurrage having been determined by an arbitral award, and the British Pound having weakened between the time of initial payment and the time of the award, the Umpire awarded the owners an additional sum of damages to compensate for their loss on the exchange rate.

Findings

This content is restricted to site members. If you are an existing user, please login. New users may register below.

Existing Users Log In
   
New User Registration
* Please indicate that you agree to the Terms of Service
*Required field