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Simple English definitions for legal terms
damages for detention
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A quick definition of damages for detention:
When a ship is chartered to transport goods, there is an agreed time for loading and unloading the cargo. If the charterer fails to do so within the agreed time, they may have to pay damages for detention, also known as noncontract demurrage. This is a compensation paid to the shipowner for the delay caused by the charterer. If the demurrage is provided for in the charter contract, it is called contract demurrage. If not, it may be ordered by a court as noncontract demurrage. In simple terms, it is like a late fee for returning borrowed equipment or not completing a task on time.
A more thorough explanation:
Damages for detention refer to the compensation paid by a charterer to a shipowner for the delay in loading or unloading cargo. There are two types of demurrage: contract demurrage and non-contract demurrage.
Contract demurrage is the demurrage paid by a charterer if the time to load or unload the vessel at port takes longer than that agreed on in the charterer's contract with the shipowner. For example, if a charterer agrees to load a ship within three days but takes four days, they will have to pay contract demurrage to the shipowner.
Non-contract demurrage is the demurrage not provided by contract but ordered by a court. It is also known as damages for detention. For example, if a charterer fails to load or unload cargo within the agreed time and there is no provision for contract demurrage in the contract, the shipowner can go to court and claim damages for detention.
A charterer agrees to load a ship within five days but takes six days. The shipowner can claim contract demurrage for the extra day. However, if the charterer takes seven days to load the ship and there is no provision for contract demurrage in the contract, the shipowner can go to court and claim non-contract demurrage or damages for detention.