The recent case of MSC vs Cottonex Anstalt [2016] ALL ER (D) 159 (Jul) sounds a warning to shippers and / or consignees, who may be liable to the carrier for demurrage on the late turn in of containers.

A shipment of cotton was sold by the shipper to the consignee. Prior to the consignee having received the shipment, there was a collapse in the price of raw cotton.  As a result a dispute arose between the shipper and the consignee that resulted in an impasse – neither party would take delivery of the cotton.  The shipper tried to avoid liability for demurrage on the containers by advising the carrier that it was unable to redeliver the containers due to circumstances beyond its control.  The carrier offered to sell the containers to the shipper, but the negotiations failed.