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Oil sale contract - Calculation of demurrage rate where unnecessarily large vessel used for lifting

Oil sale contracts, whether f.o.b. or c.i.f., can often give rise to problems of construction, particularly with regard to demurrage provisions. The present arbitration arose out of disputes under a contract concluded by telex exchange. The sellers agreed to sell 500,000/525,000 barrels of crude oil to the buyers. The anticipated lifting dates were 19_21 December. The quantity actually loaded at the time of shipment was 71,773 long tons.