London Arbitration 2/18

Sale of goods (CFR) – Sale contract requiring buyers to pay charterparty freight to sellers as soon as possible after signing bills of lading – Buyers failing to make timely payment – Shipowners refusing to release bill of lading until freight paid – Delay in freight payment resulting in demurrage liability under charterparty – Whether sellers entitled to indemnity from buyers in respect of demurrage liability

This arbitration concerned a dispute between the sellers and the buyers under a contract dated 8 September 2014 for the sale of a cargo of 3,000 mt Ukrainian feed barley on the CFR (cost and freight) terms of Incoterms 2000 (the sale contract).