London Arbitration 22/03

Demurrage - Charterparty providing for owners to have lien on sums due under present and previous charters - Owners stopping discharge of cargo for alleged non-payment of sums due - Whether telex payments of sums due made before or after discharge stopped - Whether owners entitled to exercise lien - Whether lien validly exercised - Whether demurrage payable during period lien exercised

The vessel was chartered on an amended Gencon form for the carriage of a cargo of bananas from Ecuador to St Petersburg. Freight was payable "before breaking bulk". There had been a previous course of dealing between the parties, and the charter expressly provided for the owners to have a lien on amounts due both under the existing charter, and under certain previous charters.