Marine Provisions: Are They Necessary in Commodity Contracts of Sale?

Intrinsic to long-term profitability in the commercial cargo trades is the creation of a comprehensive set of marine provisions. When buying or selling cargoes via marine transport many companies incorporate express demurrage terms defining the assessment of liability basis the type of transaction. These clauses are generally referred to as marine provisions and although some companies may apply these provisions to either sales or purchases, as the seller’s contract is generally the contract that governs the transaction, the majority of provisions are geared towards protecting the seller. Nevertheless, there are also those companies that, when selling, fail to have the foresight to incorporate specific marine provisions into their contracts.