Delay Compensation and Demurrage/Detention Disputes: Legal Framework, Proof, and Strategy in Turkish Practice

In maritime trade, delay is often not a single issue; compensation is awarded in several instances. The same event can transform into three separate areas of claim and liability that are similar but have different legal consequences: delayed delivery of cargo , exceeding loading/unloading time at port (demurrage) , and failure to return containers/equipment on time (detention) . This is why disputes escalate: the parties use the word "delay" interchangeably; however, the proof, notification, deadlines, liability limits, and calculation methods differ completely depending on the applicable regime.

The following guide systematically explains case-winning evidence and contract strategies in practice, separating these three areas through the most common scenarios encountered in Türkiye.

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1) Clearly distinguishing between concepts: Delay vs Demurrage vs Detention

1.1 Delay – failure to deliver the goods on time at the destination

The discussion here mainly the contract/bill of lading for the carriage of goods by sea . The carrier's liability for delayed delivery is evaluated in conjunction with the notification and liability limits in the Turkish Commercial Code. In particular, to notify the delay damage in writing within 60 days is a critical point of potential "loss of rights".

1.2 Demurrage – the cost of a ship waiting longer than the “free time” during loading/unloading

This concept is at the heart of the voyage charter world. The Turkish Commercial Code explicitly regulates the demurrage period and the corresponding demurrage fee that arises after exceeding the unloading period (starya)

Summary: Demurrage often functions like a "contractual delay fee" (liquidated loss); the key issues are when the demurrage begins and ends, which days are counted, and how the demurrage rate is applied.

1.3 Detention – exceeding the allowed time for equipment/container to be used outside the port

In container shipping, "detention" refers to the fee charged by the carrier for the loss of equipment use when the free time after the container is received is exceeded. Carriers usually publish this fee via a tariff (local D&D tariff). In Turkish legal doctrine, there are also analyses that differentiate between container demurrage (waiting in port) and detention (delaying outside the port) in terms of the type of default and its legal nature.

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2) Delay compensation: How are damages arising from late delivery handled in Türkiye?

2.1 Saying "there is a delay" is not enough: damage and causal link are necessary

Late delivery of goods does not always entitle one to compensation. In practice, the following three elements are typically considered together when determining compensation:

1. The delivery deadline was exceeded (contract delivery date, reasonable time, route/port conditions),

2. A tangible loss (market loss, production line shutdown, contract penalty, cold chain disruption, etc.),

3. Causal link (the damage arose from a delay; not from another risk).

2.2 60-day written notice: the strictest filter for "late payment penalties"

The Turkish Commercial Code (TTK) stipulates a specific notification rule for damages due to delay: Compensation for damages due to delay will not be paid unless the consignee notifies the carrier in writing of the delay and the claim for compensation within 60 consecutive days of the delivery of the goods.
In practice, this provision leads to the following result: even for damages arising "subsequently" after delivery (e.g., contractual penalties for late delivery to the customer) the 60-day notification rule weakens the case from the outset.

Application tip: Instead of keeping the notification "general," it is necessary to send a short but clear written notice (KEP/email + confirmation) including the bill of lading/booking number, delivery date, number of days of delay, nature of the damage, and the reservation statement.

2.3 Monetary limit on the carrier's liability for delay

The Turkish Commercial Code (TTK) establishes an upper limit for the carrier's liability arising from exceeding the transportation time, linked to the freight: two and a half times the freight payable for the delayed goods , but not exceeding the total freight. This limit is one of the strongest defenses available to the defendant in "delay" cases, regardless of how high the damage items are written (of course, different contractual arrangements/exceptions or claims of gross negligence that remove this limit can be discussed separately).

2.4 Statute of limitations: 1 year

In maritime transport of goods , a one-year statute of limitations has been established for claims against the carrier for loss, damage, or delayed delivery . This period is the most frequently overlooked red line amidst discussions about insurance correspondence, negotiations with the other party, and waiting for the expert report.

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3) Demurrage disputes: Why are laytime accounts so prone to conflict?

A demurrage case is often a "day count" case. The parties are looking at the same contract but counting different days. Therefore, success in a demurrage dispute flawlessly establishing the operational chronology .

3.1 Demurrage in the Turkish Commercial Code: Concept and Price

The Turkish Commercial Code (TTK) defines demurrage as the additional time the carrier is required to wait beyond the unloading time, if agreed upon in the contract . It also regulates the payment of demurrage fees to the carrier for this period and the framework for determining the fee, whether it is agreed upon in the contract or not.

3.2 The three most critical questions

1. When did the laytime begin?
   Generally, conditions like the Notice of Readiness (NOR) and "arrived ship / reachable on arrival" are decisive. An early/late/inappropriate NOR may prevent the laytime from starting at all and reduce the amount of demurrage you will receive.

2. On which days did Starya operate, and on which days did it cease operations?
   Exceptions in the contract (adverse weather conditions, strikes, public holidays, “weather working day”, “SHEX”, “WWD”, etc.) are entirely subject to the text. In international practice (on the LMAA line), interpretations such as “laytime is the cargo operation time; delays in the cargo's arrival at the ship do not count as a laytime exception” are common.

3. Is demurrage a "scheduled fee," or does it also require proof of damages?
   In voyage charter practice, demurrage is often treated as a "pre-agreed delay fee." However, the wording of the contract, choice of law, and specific circumstances can alter this outcome. Therefore, the first step in a demurrage case the charterparty's demurrage clause, time bar, and evidence clause together.

3.3 Evidence package for demurrage (documents that win the case)

• NOR (date/time, recipient, validity conditions)

• Statement of Facts (SOF) – port chronology

• Timesheet / laytime calculation sheet

• Port/terminal records (berth plan, shifting, waiting orders)

• Weather reports (if any weather obstruction is claimed)

• Cargo operation records (pump logs, draft survey, tally)

• Charterparty + rider clauses + add-ons

In practice, courts and arbitration panels a minute-by-minute operational schedule .

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4) Detention and container demurrage disputes: The fight begins when "free time" ends

4.1 Why is Container D&D (Demurrage & Detention) a world of its own?

Container D&D (Direct-to-Service) is often a scheduled/contractual fee . Carriers also publish D&D free time and fee schedules for Turkey.

4.2 Points of disagreement

1. The start and end of free time
   – “Discharge date, release date, or gate-out date?” – each line/contract has different procedures.

2. Whose area of ​​fault is it?

   • Customs inspections, warehouse congestion, port appointment systems, document delays…
     The parties often resort to the defense of "it was not under my control."

3. the legal nature of the fee
   is discussed in terms of distinguishing between default and legal consequences when a container is demurrage at the port and detained outside the port; this distinction is particularly important in debates about whether it constitutes a penalty clause, actual damages, or is it deductible.

4. Tariff notification and transparency:
   In practice, the importer/forwarder says "I haven't seen the tariff"; the carrier defends itself by saying "it was on my website." Therefore, including the tariff link and validity dates in the offer/email stage is invaluable.

4.3 Evidence package for container detention

• EIR (Equipment Interchange Receipt) – gate-out/gate-in date-time

• Delivery order / release time stamp

• Terminal appointment records

• Customs inspection/seizure reports

• Warehouse entry and exit records

• Communication regarding phone lines (free time extension requests and responses)

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5) Can "Delay" and "Demurrage/Detention" be requested simultaneously?

This question is asked in every case; the answer on the contract and the nature of the request .

• In voyage charters, demurrage is often arranged as “compensation” for loading/unloading delays; claims for general damages for the same delay may be limited by contractual provisions.

• Delay in cargo delivery is a separate area of ​​responsibility under the freight contract/bill of lading regime and is subject to rules such as the notification requirement (60 days) and the liability limit (2.5 times the freight) in the Turkish Commercial Code.

• Container detention is often a scheduled fee related to delays in equipment return; it is not the same as late cargo delivery.

The safest approach is to formulate the claims in the petition using an "alternative" and "different legal grounds" logic; separating them in a way that will not lead to compensation for the same delay twice.

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6) Ten critical lines in contract writing to avoid disputes

1. Delivery time / ETA–ETD binding (best endeavors or fixed date?)

2. Is there a delay compensation regime (liquidated damages/penalty clause)?

3. Demurrage rate and currency

4. Laytime definition + commencement conditions (NOR, arrived ship, berth)

5. Exceptions (weather, strikes, public holidays, port closures)

6. Time bar (how many days will it take to submit the demurrage claim, and what documents are required?)

7. Container free time + D&D tariff included in the contract

8. Force majeure clause (is port congestion considered force majeure?)

9. Jurisdiction-arbitration clause (LMAA/ISTAC/court)

10. Evidence and record-keeping obligations (SOF approval, EIR sharing, timestamp)

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7) Practical “first 72 hours” plan: what to do if a delay occurs?

If there is suspicion of delay (late delivery)

• Place a reservation at the time of delivery, noting any delay and its impact.

• a written notice before 60 days have passed (Turkish Commercial Code Article 1185/5).

• Document the damages (contractual penalty, production loss, spoilage report, etc.).

If there is suspicion of demurrage (laytime exceeded)

• Gather the NOR, SOF, and timesheets on the same day.

• Record separate entries for exceptional days (weather/strike).

• Prepare your demurrage claim package according to the time bar in Charterparty.

If there is suspicion of container detention/demurrage

• Collect gate-out/gate-in EIRs and release timestamps.

• Please submit your free time extension request in writing.

• Obtain official records for customs/terminal delays.

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Final words

The heading "delay" is not a single legal category. In Turkish practice:

• delay compensation arising from late delivery and the freight-based liability limit form the backbone of the case.

• Demurrage, on the other hand, operates within the laytime/NOR/SOF triangle, based on chronology and contractual exceptions; the Turkish Commercial Code defines the concept and cost of demurrage separately.

• Detention is a fee regime, often based on a fixed or contractual fee, for the delayed return of container equipment, and is evidenced by gate records.