Demurrage Under Pakistani Law: Legislative Framework, Challenges, and Strategies to Protect Client Interests in Pakistan

The word Demurrage itself explains the cost imposed on the consignee or owner of goods for delays beyond the free days which is called lay time in legal terms but due to late clearance and many more related issues shipper and consignee both suffer. Although, the courts of Pakistan grant a stay to the consignee for non-payment of demurrage under section 14-A custom Act yet ignore the fact that the doctrine of privity also operates in contracts, as both the shipper and owner of the goods sign the terms and conditions regarding the payment of demurrage, as in every contract lay time is always provided to the owner of the cargo. However, every cargo owner is not always entitled to a stay on nonpayment. Here the barrier or issue of less trade arises. This article explores the legal framework for Demurrage and the issues involved in its application in Pakistan.