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
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.
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