Laytime and demurrage management have grown increasingly complex, driven by heightened regulations, legal ambiguities, and global supply chain disruptions. With rising costs and operational risks, managing claims with precision has become essential for maritime operators. 

An interesting recent report by the Federal Maritime Commission exemplifies the scale of the problem across not only the container shipping sector, but tramp shipping as well: over a 41-month period starting April 2020, nine carriers collected a staggering $13.9 billion in demurrage and detention fees—amounting to $339 million per month and $4 billion per year. Knowing just how costly demurrage can be, industry leaders are prioritizing streamlined and optimized processes for claims. Let’s take a look at key factors impacting laytime and demurrage today and how technology is paving the way for the future. 

Stricter regulations and supply chain disruptions 

Environmental regulations aimed at sustainability have introduced new layers of complexity for maritime operators, such as an increase in compliance checks at port that could potentially cause operational delays. Port delays can then lead to missed laytime windows and higher risks of demurrage charges. Simultaneously, global supply chain disruptions and port congestion have made it increasingly difficult to meet contract schedules, further elevating the risk of disputes. 

Complex contracts and legal disputes 

The complexity of modern charter party agreements, particularly around laytime and demurrage clauses, can often lead to disputes. For instance,  COVID-19 has complicated “free pratique” handling in the notice of readiness. Multiple stakeholders with varying risk exposures and interpretations only add to these nuances. BIMCO’s 2022 update to the GENCON charterparty calls out this increasing complexity, stating: “The shipping industry has become much more complex and regulated, with both shipowners and cargo owners being subject to obligations that were never thought of in 1994.”  

Claims management today 

As the maritime industry continues to digitalize, managing claims is becoming more data-driven but also more complex. Operators must reconcile data from multiple sources to verify claims and ensure transparency. This is where the right digital technologies can support, providing a centralized claims management workspace so users can quickly resolve disputes and streamline communication with counterparties. 

Commercial freight management solutions like the Veson IMOS Platform can enhance visibility, allowing users to manage claims intake, communication, and calculations from a filterable dashboard. This helps verify claims against multiple data sources, reducing the time spent reconciling differences. The platform also facilitates creating and sharing claims packages with stakeholders, providing a single source of truth, simplifying the claims process, and accelerating resolution. 

The future of laytime and demurrage 

Looking forward, technological advancements like AI are set to transform laytime and demurrage management by helping to further automate processes and pave the way for more dynamic contracts that enhance transparency and reduce disputes. As sustainability pressures mount, global standardization and innovative technologies will be key to improving operational efficiency and reducing risks. 

Claims management with IMOS 

As laytime and demurrage risks continue to grow due to tighter regulations, supply chain volatility, and complex contracts, the ability to adapt to change is critical for maritime operators. We at Veson are continuously evolving our solutions to best support our clients in streamlining claims management, mitigating disputes, and staying competitive in a rapidly evolving industry.

The Claims Module in the IMOS Platform delivers contract-centric workflows, integrated laytime calculations, and comprehensive KPI reporting, all within a secure and reliable environment. With seamless connections across your systems and departments, you can centralize your claims process from intake to resolution. We are committed to continuously investing in and enhancing our claims management solutions so you can drive more efficient outcomes despite complexity and change.

Ready to start exploring potential advancements to your claims management process? Get in touch with us here, we’d love to speak with you.