A shipbroker contributed US$24,000 towards a settlement of a demurrage dispute after delays in forwarding key documents complicated a claim between shipowners and charterers, according to a case highlighted by International Transport Intermediaries Club (ITIC) in its most recent Claims Review.
The dispute concerned a demurrage claim, valued at approximately US$48,000, which the owners were pursuing against charterers for delays at discharge. The shipbroker became involved after failing to pass on supporting documents relating to the claim.
The owners’ claim was not entirely straightforward, and questions remained over whether all the supporting documentation had been provided in time.
However, the broker’s delay in forwarding key documents meant the charterers’ objections did not reach the owners promptly, reducing the opportunity to address any deficiencies in the claim.
As liability and causation were not clear cut, ITIC assisted the shipbroker in negotiating a commercial settlement. Given the weaknesses in the underlying demurrage claim, the matter was settled with the shipbroker contributing US$24,000, half the value of the claim, towards the owners’ losses.
Mark Brattman, claims director at ITIC, commented: “Shipbrokers sit at the centre of the information flow between owners and charterers. When documents or objections are not passed on promptly, the broker can find themselves part of the dispute, even where the underlying claim has weaknesses of its own.
“In this case, the delay reduced the owners’ chance to deal with problems in their claim early. That made liability difficult to rule out, and a commercial settlement was the sensible outcome. It also shows what professional indemnity cover is for beyond paying a claim. Expert support in assessing liability and negotiating a resolution can make a real difference to the result.
“The lesson for brokers is simple. Demurrage claims often carry tight contractual time bars, so claims and supporting documents should be passed on as soon as they arrive, with a record of when that happened. Even a short delay can prejudice a party’s position and prove costly.”
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