Stevedore Damage: Who Pays, Who Repairs, and When?

⚓ “Stevedore Damage: Who Pays, Who Repairs, and When?”

— Navigating Clause 41 in Charter Parties

 

❓ Three Questions to Spark Curiosity:

1. Have you ever faced delays because of unreported stevedore damage?
2. Are you confident your stevedore damage claims would hold in arbitration?
3. Do you know who pays for repairs if damage is discovered days later?

 

📜 Clause Breakdown: Understanding Stevedore Damage Responsibility

Clause 41 – Stevedore Damage Clause is a common feature in time charter parties that outlines who is responsible for damage caused by stevedores—workers involved in cargo handling at ports.

Let’s break it down:

✅ Timely Reporting is Critical

• Damage must be reported as soon as possible, but no later than 48 hours after voyage completion, or when it could have been discovered with due diligence.
• This creates a tight window for ship staff to inspect and report, emphasizing the importance of routine surveys and checklists during cargo operations.

✅ Written Acknowledgement

• The Master should obtain written confirmation of damage from responsible stevedores or port agents.
• If the damage has already been repaired, acknowledgment is still recommended for documentation and accountability.

✅ Seaworthiness vs. Other Damage

• If the damage affects seaworthiness or key equipment, repairs must be done immediately and on the Charterers’ time and cost.
• Other damage can be:
• Done during the same port stay if possible.
• Deferred to drydock in Owners' time only if it doesn’t interfere with Owners’ work.
• Carried out by the crew at the Owners’ convenience.
• But all repair costs still fall on the Charterers.

✅ Payment Obligations

• Charterers must pay for the damage whether or not they recover costs from stevedores.
• This closes the loop—Owners don’t have to wait for the Charterers to chase reimbursement.

 

⚖️ Real-World Examples & Common Pitfalls

Example:
A vessel sustains crane damage due to negligent stevedore operation. The Master delays reporting until 3 days after completion of cargo ops. Claim denied due to late notification under the 48-hour rule.

Common Pitfalls:

• Failing to document damage with photos and timestamps.
• Assuming repairs can be delayed without mutual agreement.
• Believing Charterers only pay if they recover from port agents/stevedores.

BIMCO Commentary (where applicable):
BIMCO typically stresses documentation, prompt reporting, and separation of seaworthiness issues as key to minimizing disputes.

 

📌 Actionable Steps for Stakeholders

🛠️ For Vessel Masters:

• Conduct post-cargo inspections diligently.
• Use checklists and take photos.
• Secure written acknowledgment when possible.

📤 For Operators/Managers:

• Train ship staff on reporting timelines.
• Establish SOPs for identifying and escalating stevedore-related damage.

💼 For Charterers:

• Set up claims handling teams to follow up with stevedores/agents.
• Accept repair costs upfront to maintain relationships and avoid off-hire claims.

⚖️ For Owners:

• Document everything—even if the Charterer is paying.
• Monitor crew reports for late notifications and guide accordingly.

 

✅ Conclusion: Stay Ahead, Stay Protected

Stevedore damage is more than just wear and tear—it can cause serious disputes if not handled correctly. This clause protects Owners but only if reporting and procedures are tight.

💬 Have you faced a stevedore damage dispute before? What did you learn from it?
👇 Comment below and share your experience.
🔁 Like, share, and follow #ShipOpsInsightsWithDattaram for weekly deep dives into clauses that matter at sea and ashore.

 

📌 Disclaimer:

This blog post is intended for informational purposes only and does not constitute legal advice. For charter party disputes or interpretations, always consult with maritime legal professionals or your P&I Club.