Lost in communication

A shipbroker became involved in a dispute after failing to pass on supporting documents relating to a demurrage claim that owners were pursuing against charterers. The claim concerned delays at discharge and was valued at approximately US$48,000.

The owners’ claim was not entirely straightforward, and questions remained as to whether all supporting documentation had been provided in time. However, the broker’s delay in forwarding key documents prevented the charterers’ objections from reaching 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. Considering the weaknesses in the underlying demurrage claim, the matter was ultimately resolved with the shipbroker contributing US$24,000 towards the owners’ losses.

Shipbrokers play an important role in the timely exchange of information between contractual parties. Delays in passing on claims or supporting documents can prejudice a party’s position and increase the risk of disputes. Careful document handling and prompt communication are essential, particularly where contractual time bars may apply.