Freight and Demurrage Liability Claims often arise in the shipping industry due to delays and disputes over cargo handling. Here are some key points to understand:
Freight Claims: These involve disputes over the payment for transporting goods. If goods are damaged or lost during transit, the carrier may be liable unless the damage was due to specific exceptions like natural disasters or acts of public authority.
Demurrage Claims: These occur when a ship is delayed beyond the agreed laytime (the time allowed for loading and unloading). The party responsible for the delay typically pays demurrage charges.
FD&D Insurance: Freight, Demurrage, and Defense (FD&D) insurance covers legal costs associated with these disputes. It does not cover the actual claim amount but helps with legal advice, mediation, arbitration, or litigation.