Shipping Lawyer Maritime Contract Law 2

Question 1

What is 'demurrage' in maritime law?

Accepted Answer

Liquidated damages for detaining a vessel beyond laytime

Answer

Demurrage is the agreed liquidated damages payable by the charterer when the vessel is detained beyond the allowed laytime.

Question 2

Under COGSA, what is the per-package liability limit for cargo damage?

Accepted Answer

$500

Answer

COGSA limits carrier liability to $500 per package or customary freight unit unless the shipper declares a higher value.

Question 3

Which COGSA defense exempts a carrier from liability when cargo damage results from an act of God?

Accepted Answer

Act of God defense

Answer

COGSA's Act of God defense excuses the carrier when damage results from extraordinary natural events beyond human control.

Question 4

What is a 'safe port' warranty in a time charter?

Accepted Answer

A charterer's undertaking that nominated ports are safe for the vessel

Answer

Under a time charter, the charterer warrants that ports nominated for the vessel to call at will be safe for the vessel to reach, use, and depart.

Question 5

Which legal doctrine allows cargo to be substituted for lien payment in maritime disputes?

Accepted Answer

Lien on cargo

Answer

A maritime lien on cargo allows carriers to hold or sell cargo as security for unpaid freight or demurrage charges.

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