Egypt: Fines for slow loading


Published: 20 January 2014

Towards the end of last year the Association was alerted to a situation in Alexandria where a vessel was being presented with a claim for slow loading of cargo. The claim stated that if the vessel was unable to load at the rate of 3,000 mt per day then a fine would be imposed of USD 12 x the vessel's LOA / day. In the case at hand that would have meant a fine of USD1,761.72 for every day the vessel did not reach the designated loading rate. This was even though the vessel was not to blame for the slow loading, as the shippers were at fault in not providing sufficient cargo to meet the daily loading rate required.

Apparently this fine was imposed subject to a decree issued in 2012, but which had previously not been enforced.

The matter was investigated and the Association can now advice that the applicable decree is No. 142/2012 and which has now been put into force by the Alexandria Port Authority.

This issue has been discussed in the Alexandria Shipping Chamber, with Skuld Correspondents in attendance, and it would appear that the decree is now fully in force and being applied more regularly.

There have been debates locally as to the consistency of the enforcement of the decree, and the level of the fine. Apparently in Damietta Port a similar procedure is in place, but only at USD 6 per mt.

Members are advised to be aware of the situation, and ensure that they provide for the eventuality of a fine in their fixture prior to concluding the charterparty so that it is clear who may be responsible for the fine and under what circumstances such responsibility is assumed. For instance, an owner should reject responsibility for such a fine if it is due to the slow provision of cargo to the vessel.

If Members have further queries, they are asked to contact the Association.

The Association is grateful to Messrs. El Hamamsy for assisting with this advisory.