Shifting the blame

A ship agent was requested to assist a ship in a scheduled discharge of cargo during a routine port call. In preparation, they provided the owners with a pro forma disbursement account (PDA), which included an estimate for stevedore costs based on two shifts of discharge. The PDA also clearly outlined the applicable stevedore rates, including the higher weekend charges; 150% surcharge for Saturday and 200% for Sundays and bank holidays.

The ship arrived on a Thursday but was unable to berth until Friday. Discharge commenced that day but was soon delayed due to an operational issue. As a result, the operation extended into Saturday and resumed again on Monday, concluding that evening. In total, four shifts were required, one of which took place on Saturday.

When the final disbursement account (FDA) was issued, the owners refused to pay the Saturday stevedore charge.

Their argument was that the agent should not have arranged discharge on a Saturday due to the increased cost, and that the operation should have been postponed until Monday. However, while they disputed the 150% surcharge, they withheld the entire cost for that shift.

ITIC intervened to clarify that the only amount in dispute was the surcharge, not the base cost of the shift, which would have been incurred regardless of the day. Furthermore, ITIC supported the agent by pointing out that the discharge operation had been carried out with the full knowledge and authorisation of the Master, acting on behalf of the owners. At no point had the agent been instructed to avoid weekend operations. In the absence of such instructions, and in line with standard practice, the agents arranged for discharge to proceed promptly. Delaying the operation would have risked losing the berth to another ship, potentially causing further complications and costs.

Ultimately, the owner agreed to pay the costs.