Introduction

Within the Oil Trading and Logistics Industry, managing the costs associated with Seagoing Voyages remains a key consideration for delivering improved value across the Supply Chain.

There is a long standing set of conventions as to how the costs associated with any shipping delays are recovered through demurrage, but the administration of demurrage claims does not always proceed in a standard way, leading to many parties highlighting the opportunities for improvement.

Moreover, diverse and misaligned practices act as a blocker to those trying to digitize their operational interactions, something which can only be resolved by a group working across the industry.

Since it was formed in mid 2021, the Energy LEAP working group on Seagoing Demurrage, has identified an opportunity to introduce a level of standardisation, which defines the list of documents which should constitute a “demurrage claim”, in order for this to be “accepted as received”. Having clarity is beneficial when there are contractual time-bars for claims to be submitted.

What is the Ambition?

An opportunity exists to develop a LEAP standard of essential documentation for inclusion in a demurrage claim. Having a standardized list will eliminate ambiguity around document requirements, giving both submitter and recipient confidence that the claim is fully documented and will NOT be time barred by reason of missing documentation. A LEAP standard, referred to by charter parties and GTCs, will lead to greater efficiency in the claim process, allowing participants to focus on resolution rather than reasons for delay or rejection of claims.

Draft for Consultation:

We are specifically asking owner representatives to review this draft, and we will schedule specific engagement opportunities as needed.

Download our draft standard here.

Should you have any comments on this draft standard, please do not hesitate to reach out and we will arrange for an industry leader of this initiative to engage directly with you to understand any questions or comments you may have. After this time a finalised version will be published by Energy LEAP.

You are invited to provide feedback to [email protected]  or via our contact form here by 31 March 2022.

We look forward to hearing from you.

Peter Harvey, Energy LEAP Programme Director