Half demurrage
Meaning
Half demurrage is a reduced rate, half the agreed demurrage, that many tanker charters apply to delays from causes outside either party's control.
Half demurrage explained
Tanker charters commonly say that time lost because of events such as fire, explosion, storms, strikes or breakdown of the terminal's equipment counts at half the demurrage rate if the ship is already on demurrage, or at half rate against laytime. The exact list of causes varies by form and rider.
Half-demurrage clauses are a frequent source of claim disputes, because the charterer has to show the delay fell within the listed causes.
Related terms
Demurrage
Demurrage is the agreed daily amount the charterer pays the owner for every day the ship is kept in port beyond the laytime allowed.
Laytime
Laytime is the time the charterer is allowed, without paying extra, to load and discharge the cargo under a voyage charter.
Laytime statement
A laytime statement is the calculation that sets out laytime allowed, time used at each port, exceptions and the resulting demurrage or despatch.