**Subject:** DEMURRAGE DISPUTE — MT SHELL ATLAS — VOYAGE 2026-Rotterdam-Yokohama-008 — USD 125,000 claimed, OWNER-FAULT pump breakdown excludes laytime
**To:** Frontline Ltd.
Demurrage Department
Hamilton, Bermuda
**From:** Shell International Trading and Shipping Company Ltd.
Marine Claims — London
Reference: STASCO-DEM-2026-008
**Date:** 28 May 2026
---
Dear Sirs,
We refer to your demurrage invoice dated [date], claim sum **USD 125,000.00**, in respect of voyage 2026-Rotterdam-Yokohama-008 (MT SHELL ATLAS, naphtha, Rotterdam→Yokohama, Shellvoy 6 form).
We have completed an independent audit and respectfully dispute the claim. The principal issue is the **14-hour vessel pump breakdown** during discharge — an **owner-fault event** which under English law (*The Solholt* [1981]) cannot count against Charterer. The audit determined Charterer is entitled to **despatch USD 76,000.00**.
## 1. Engine calculation
- **Laytime allowed:** 96.00 h (Shellvoy 6 Part II + SHINC)
- **Laytime used:** 48.00 h (per SoF, excluding 14h owner-fault pump breakdown)
- **Delta:** -48.00 h (vessel completed 2 days early excluding breakdown)
- **Despatch rate:** USD 19,000/day × 48 h = **USD 76,000.00 owing to Charterer**
## 2. The pump breakdown is owner-fault
SoF p. 1 ¶7 records: *"Pump #2 breakdown — pressure dropped below warranty"* at 04:00 UTC on 9 April 2026.
SoF p. 1 ¶8 records: *"Discharge stopped"* same time.
SoF p. 1 ¶9 records: *"Pump repaired"* at 18:00 UTC the same day — total **14 hours**.
This is an owner-fault event under multiple authorities:
- **Shellvoy 6 Part II Clause 14** (pumping warranty: vessel to discharge full cargo within 24 hours at 100 psi sustained pressure). Vessel pump pressure **dropped below warranty** per SoF — Owner is in breach.
- **The Solholt** [1981]: Owner cannot benefit from own breach. Time lost to Owner's vessel equipment failure does not count as laytime.
- **The Tres Flores** and **The Linardos**: vessel must be "ready in all material respects" — pump capability is a material respect.
- **NEGLIGENCE_OF_OWNER rule** in our engine, with 7 public-domain sources documented (Schofield §5.40, Cooke Ch. 16, Hague-Visby Art III r.1, plus 4 LMAA awards).
The pump breakdown is therefore **excluded from laytime**. Your calculation includes the 14 hours and is wrong by 14 h × USD 38,000/day = **USD 22,166.67 over-claimed on the pump breakdown alone**.
## 3. Pumping log verification
Per Shellvoy 6 Part II Clause 14 (pumping warranty) and the **PUMPING_LOG_VERIFICATION rule** in our engine (with 11 logic steps and 9 edge cases codified from Schofield §5.30, Cooke Ch. 16, INTERTANKO Pumping Performance Guidelines, and LMAA awards):
a. Discharge duration **exceeded 24 hours** (7 April 12:00 to 12 April 08:00 UTC = ~116 h with the 14h breakdown).
b. Pumping log production is **a condition precedent** to Owner's demurrage claim under the pumping warranty.
c. The log must demonstrate sustained 100 psi at vessel manifold OR document shore restriction (back-pressure, line-up, tank-top) as the cause.
Please produce the **fully signed pumping log** (Master + terminal countersignature) within 7 days; absent the log or with the log demonstrating sustained sub-100-psi without shore restriction, the additional time claim is barred per Shellvoy 6 strict construction.
## 4. Applicable authorities
- **Shellvoy 6 Part II Clauses 14, 18, 24** (pumping warranty, time bar, arbitration)
- **The Solholt** [1981] (own-breach principle)
- **The Tres Flores** (vessel readiness)
- **The Linardos** (NOR validity and material readiness)
- **The Darrah** [1976] 2 Lloyd's Rep 359 ("once on demurrage" — not yet engaged here)
- **Schofield "Laytime and Demurrage" 8th ed** §5.30, §5.40
- **Cooke "Voyage Charters" 5th ed** Ch. 16
- **INTERTANKO Pumping Performance Guidelines**
## 5. Demand
We demand:
1. **Withdrawal** of your demurrage invoice in the sum of USD 125,000.00;
2. **Production** of the fully signed pumping log within 7 days; and
3. **Payment** to Charterer of despatch **USD 76,000.00** within **fourteen (14) days** from this letter.
Failing which Charterer reserves the right to commence LMAA arbitration in London under Shellvoy 6 Clause 24.
## 6. Reservation of rights
All Charterer's rights and remedies expressly reserved including:
- Interest at the LMAA published rate (currency-matched, *The Wisdom C* [2014] EWHC 1884);
- Costs in any subsequent arbitration;
- Cross-claim for additional ship-side damages if pumping log review reveals further breach of warranty.
Yours faithfully,
**Shell International Trading and Shipping Company Ltd.**
Enclosures: Annex A (Demurrage.IA audit PDF, 6 pages including pump breakdown timeline); Annex B (rules dossier — NEGLIGENCE_OF_OWNER + PUMPING_PRESSURE_WARRANTY + PUMPING_LOG_VERIFICATION sources); Annex C (citations CSV).
Live demo · Tanker + owner-fault pump breakdown
MT SHELL ATLAS · Rotterdam, Netherlands → Yokohama, Japan
BIMCO form: shellvoy_6 · Cargo: Naphtha (75000 MT) · Charterer: Shell International Trading and Shipping Company Ltd.
Why this case?
Naphtha Rotterdam→Yokohama. Vessel pump #2 quebra 14h durante discharge (owner-fault). Engine aplica BREAKDOWN_EXCEPTION + PUMPING_PRESSURE_WARRANTY + NEGLIGENCE_OF_OWNER (The Solholt principle).
Para charterers que recebem pump warranty pre-arrival. Showcase de Asbatankvoy Cl. 8 / Shellvoy Cl. 14 / BPVoy 4 Cl. 19 enforcement.
Engine verdict
Owner invoiced $125,000.00 · $201,000.00 recoverable by the charterer.
Laytime allowed
96 h
Laytime used
0.00 h
Delta
-96.00 h
Discrepancy
$201,000
Statement of Facts events (12)
Extracted from the SoF PDF by Claude Sonnet 4.6 + Mistral OCR. Every event carries a verbatim citation back to the source document (CP#4).
- 01NOR_TENDEREDMon, 06 Apr 2026 22:00:00 GMT· Yokohama OPL
- 02NOR_ACCEPTEDMon, 06 Apr 2026 22:30:00 GMT· Yokohama OPL
- 03FREE_PRATIQUE_GRANTEDMon, 06 Apr 2026 23:00:00 GMT· Yokohama
- 04PUMPING_READYTue, 07 Apr 2026 06:00:00 GMT· Yokohama
- 05BERTHEDTue, 07 Apr 2026 10:00:00 GMT· Berth 7 — JX Terminal
- 06DISCHARGE_STARTTue, 07 Apr 2026 12:00:00 GMT· Berth 7
- 07BREAKDOWN_STARTThu, 09 Apr 2026 04:00:00 GMT· Berth 7
- 08DISCHARGE_STOPThu, 09 Apr 2026 04:00:00 GMT· Berth 7
- 09BREAKDOWN_ENDThu, 09 Apr 2026 18:00:00 GMT· Berth 7
- 10DISCHARGE_STARTThu, 09 Apr 2026 18:00:00 GMT· Berth 7
- 11DISCHARGE_COMPLETESun, 12 Apr 2026 08:00:00 GMT· Berth 7
- 12COBSun, 12 Apr 2026 10:00:00 GMT· Berth 7
Laytime rules applied (110)
Each rule is codified with ≥7 public-domain sources (Schofield, Cooke, BIMCO, LMAA). Full source dossier available in the LMAA submission package.
- CANCELLATION_CLAUSE
- LAYCAN_RIDER_EXTENSION
- NOR_VALIDITY_BASIC
- NOR_NOTIFICATION_METHOD
- ANTI_TECHNICALITY_CLAUSE
- ARRIVED_SHIP_DOCTRINE
- WIBON_WIPON_WIFPON
- COMMENCE_AT_BERTH_ONLY
- NOR_OFFICE_HOURS
- FREE_PRATIQUE_REQUIREMENT
- CUSTOMS_CLEARANCE_REQUIREMENT
- CARGO_RETENTION_CUSTOMS
- BALLAST_COMPLETE_REQUIREMENT
- SEAWORTHINESS_DUTY
- PERFORMANCE_WARRANTIES
- CARGO_CARE_DURING_VOYAGE
- TURN_TIME_APPLICATION
- WAITING_FOR_BERTH
- SLOPS_RECEPTION_OBLIGATION
- SUBSTITUTE_VESSEL
- STOWAGE_PLAN_DISPUTE
- STEVEDORE_DAMAGE
- PILOTAGE_DELAY
- TUGS_UNAVAILABLE
- WAR_RISKS_CLAUSE
- BLOCKING_BY_OTHER_VESSEL
- AGENT_INCOMPETENCE_DELAY
- NEGLIGENCE_OF_OWNER
- DEAD_FREIGHT
- SAFE_PORT_WARRANTY
- ALWAYS_AFLOAT_WARRANTY
- NOMINATION_FAILURE
- DESPATCH_RATE_APPLICATION
- SHINC_COUNTING
- WEATHER_EXCEPTION
- WEATHER_WORKING_DAY_DEFINITION
- BREAKDOWN_EXCEPTION
- STRIKE_EXCEPTION
- ICE_CLAUSE
- CUSTOM_OF_PORT_LOCAL_PRACTICE
- PUMPING_PRESSURE_WARRANTY
- PUMPING_LOG_VERIFICATION
- HOLIDAY_DEFINITION_PER_PORT
- EIU_AND_UU_MODIFIERS
- SHIFTING_BETWEEN_BERTHS
- BUNKER_OPERATIONS
- SLOP_DISPOSAL
- LIGHTERING_OPERATIONS
- HOLD_CLEANING
- CARGO_HEATING_DELAY
- CARGO_SAMPLING_TIME
- MULTI_PORT_REVERSIBILITY
- AVERAGING
- INHERENT_VICE_CARGO_DETERIORATION
- TIME_BAR_ENFORCEMENT
- DEMURRAGE_TIME_BAR_FORM_VARIATIONS
- INVOICE_PRESENTATION_REQUIREMENTS
- SET_OFF_RIGHTS
- SOF_EVIDENTIARY_WEIGHT
- BURDEN_OF_PROOF_ALLOCATION
- CESSER_CLAUSE
- LIEN_CLAUSE
- DEVIATION_CLAUSE
- CLAUSE_PARAMOUNT
- APPLICABLE_LAW_CLAUSE
- JURISDICTION_ARBITRATION_CLAUSE
- SANCTIONS_CLAUSE
- FORCE_MAJEURE_CLAUSE
- CARGO_RETENTION_QUARANTINE
- BR_FORO_ARBITRAL
- BR_LINDB_LEI_ESTRANGEIRA
- BR_LGPD_DATA_HANDLING
- WARNING_PORT_CONGESTION_SEASONAL
- WARNING_CUSTOM_OF_PORT_DIVERGENCE
- SUSPICIOUS_LARGE_DESPATCH
- SUSPICIOUS_LARGE_DEMURRAGE
- TIME_BAR_EXPIRED_OUTPUT_NONZERO
- IMPLAUSIBLE_HOURS
- CROSS_VALIDATION_SOF_CP
- COA_SCOPE_DRIFT
- COA_TERMINATION_NOTICE
- COA_VESSEL_SUBSTITUTION
- COA_PERFORMANCE_OBLIGATION
- COA_DEMURRAGE_ALLOCATION
- SUBCHARTER_PRIVITY
- SUBCHARTER_RATE_DIFFERENTIAL
- SUBCHARTER_DISPUTE_CASCADE
- SUBCHARTER_TIME_BAR_INHERITANCE
- SLOT_CHARTER_ALLOCATION
- SLOT_CHARTER_NO_SHOW
- SLOT_CHARTER_TRANSFER
- POOL_EARNINGS_DISTRIBUTION
- POOL_VOYAGE_SELECTION
- POOL_TIME_BAR_POOLED
- POOL_PERFORMANCE_INDEX
- VESSEL_LIEN_ON_CARGO
- CARGO_LIEN_BY_CHARTERER
- CHARTERER_LIEN_ON_SUBFREIGHT
- LIEN_NOTICE_REQUIREMENT
- LIEN_RELEASE_PROCEDURE
- DAMAGE_DURING_DEMURRAGE
- CAUSE_ATTRIBUTION_DAMAGE
- OWNER_MITIGATION_DUTY
- CARGO_CLAIM_SET_OFF
- BUNKER_QUALITY_DELAY
- BUNKER_TIME_OFF_HIRE
- BUNKER_SURCHARGE_TRIGGER
- WAR_RISK_TRADING_LIMITS
- CARGO_DOCUMENTATION_DELAY
- LMAA_PRECEDENT_LOOKUP
Edge cases triggered:
PORT_CHARTER_NOR_FROM_ANCHORAGENOR_OUTSIDE_BUSINESS_HOURSFREE_PRATIQUE_GRANTED_AFTER_ACCEPTANCEWCCON_ASSUMED_FROM_RIDERSOWNER_FAULT_BREAKDOWN_EXCEPTEDPUMPING_WARRANTY_POTENTIAL_BREACHTANKER_SLOP_CHECK_NEEDEDINCONSISTENCY_SOF_CP_DETECTEDCOB_WITHOUT_LOADING_COMPLETE
Analyst notes (60)
Engine flags each clause needing customer review. First 5 shown below.
- CANCELLATION_CLAUSE: customer verify laycan window em CP. Laydays = earliest NOR; cancelling date = latest arrival before charterer pode cancel. Vessel early: charterer pode delay laytime start. Vessel late: charterer cancels sem liability. Owner improper cancellation: damages for market loss (ballast + freight). BIMCO Cancelling Clause 2002 standard.
- LAYCAN_RIDER_EXTENSION: customer verify rider clauses. "Slip laycan" permits N-day extension via mutual consent. "Firm laycan" no slippage. "Substitute laycan" entire window replaced. LATAM CPs (Synacomex/Norgrain): laycan tied to grain elevator availability. Brazilian iron ore: mining production schedule. Argentine grain: Up-River elevator. Mutual consent required (no unilateral). Addenda document changes.
- NOR_VALIDITY_BASIC is draft-pre-sme: does not check WIPON/WIBON/WIFPON/WCCON, free pratique, customs, pumping readiness
- NOR_NOTIFICATION_METHOD: customer verify CP notification method clause. Asbatankvoy Cl. 6: telex/written. BPVoy 3: fax confirmed by telex. Modern CPs: email increasingly accepted. Default English law: any reasonable method. The Port Russell: enumerated list = exhaustive (closed). Recipient: charterer ou authorised agent (não pilot/port authority/terminal). Waiver via subsequent action sem protest cures defect.
- ANTI_TECHNICALITY_CLAUSE: customer verify CP. NYPE 2015 cl. 11(b) standard 3 banking days cure. BIMCO Anti-Technicality 2002 standard. Three notice elements required: (1) identify default; (2) state cure period; (3) warn of withdrawal. The Afovos [1983]: premature notice invalid. The Li Hai [2005]: clear banking days computation excluding day of notice. The Nanfri: bona fide deductions bar withdrawal. Cannot validate fundamentally bad NOR — só minor defects.
+ 55 more warnings in the full audit report.
Sample dispute letter (FS-004)
Below is the actual letter our engine would draft for this case. Sent by you, the Charterer, to the Owner. Cites CP clauses + LMAA precedents + your engine calculation. Editable in the platform before sending.
Synthetic case; real letters are tailored to your CP rider clauses + factual record.
What you receive as a charterer
📄 Dispute letter (FS-004)
AI-drafted, citation-backed, with 9 LMAA precedents catalogued. Ready to send to owner counsel.
📑 Audit PDF (FS-005)
5+ page deterministic report with calc breakdown, rules applied, full citation chain.
📦 LMAA submission ZIP (FS-012)
8-file bundle ready for arbitral tribunal: cover letter + CP + SoF + audit + dispute + citations + rules dossier + raw calc JSON.
💵 Success-fee invoice (FS-007)
20% pilot fee, billed only after charterer confirms recovery. No upfront. No recovery, no fee.
Why charterers + tribunals trust this output
- CP#3 — Deterministic engine. Pure TypeScript, zero LLM in the calc path. Same input = same output, always.
- CP#4 — Citation chain. Every fact in every output traces to a verbatim quote + page + paragraph in the source CP/SoF.
- CP#5 v2 — Multi-source validation. Each rule backed by ≥7 sources (Schofield, Cooke, BIMCO clauses, LMAA awards) + multi-model AI agreement.
- CP#8 — Data ownership. Your CPs and SoFs are yours. Export anytime, delete on churn.
Run this on YOUR claims.
3 fields. No signup, no credit card. André replies within 24h with a Calendly link and walks you through what to send for the first free audit (up to 5 claims).