Ship agents risk facing an increasing number of legal disputes over weekend port charges if unclear operational instructions from owners and charterers continue to expose them to financial risk, according to International Transport Intermediaries Club (ITIC).
A recent case handled by ITIC involved a disagreement between a shipowner and their local agent after a routine discharge operation extended into a Saturday, triggering a 150% stevedoring surcharge that was outlined in their pro forma disbursement account (PDA). The owner refused to pay the additional stevedore costs for the weekend shift, claiming the agent should have delayed operations until the following Monday to avoid higher rates.
The incident began after the vessel reached the port on the Thursday but berthing was delayed until Friday. Cargo discharge began once alongside but was interrupted by an operational issue that extended the schedule into Saturday. Due to the various factors, the owner incurred one Saturday stevedoring surcharge, with the remaining work resuming on Monday.
With ITIC’s backing, the agent was found to have acted correctly. The weekend surcharges, set at 150% for Saturdays and 200% for Sundays and bank holidays, had been clearly outlined in the PDA issued before the vessel’s arrival and the shipowner did not communicate with the agent that they should not work over the weekend to avoid higher costs.
Mark Brattman, Claims Director at ITIC, said: “In this particular incident, the PDA had made the weekend rates explicit, and the discharge progressed with the Master’s knowledge and authority. In the absence of instructions from the owner to avoid weekend work, it was reasonable for the agent to proceed to protect the berth and maintain the operation. The real question was whether the surcharge applied, not whether the basic shift cost should be paid – as the owner declined to pay either.”
ITIC supported the agent’s position that the base cost for the Saturday shift would have been incurred on any working day, and that delaying the discharge operation could have led to loss of berth, additional complications, and risk of additional financial penalties. Following ITIC’s intervention, the owner agreed to settle all the charges.
“Agents are increasingly exposed to disputes when weekend operations are not clearly authorised in advance,” he cautioned. “Even when costs and rates are set out clearly in a PDA, it is preferable to confirm any cost-sensitive operations in advance – if it is reasonable and possible to do so. Transparent communication and accurate records remain the best protection against disputes over port charges. The lesson is simple: confirm everything in writing.”
ITIC’s warning comes as ship agents face increasingly narrow profit levels due to tighter voyage margins and rising operational costs that are putting pressure on owners to keep costs down.
Caption: Mark Brattman, Claims Director at ITIC
Image credit: ITIC
