TRW & Co · Shipping, Port & Admiralty
Charter Party Dispute Lawyer in Chittagong: Hire, Freight and Laytime Claims in Chattogram
A charter party dispute lawyer in Chittagong resolves fights over unpaid hire, freight, laytime, demurrage and cargo liens on ships trading to Chattogram. Most charters choose London or Singapore arbitration, but security, evidence and enforcement are local, and a January 2026 High Court Division ruling shows how quickly a badly founded arrest can be undone.
Key pointCharterparty claims fall within admiralty jurisdiction, but arrest in rem needs more than a valid contract claim: the person liable must be connected to the ship as the Act requires, and the court expects the arbitration clause to be disclosed.
At a glance
Hire is a maritime claim
The Admiralty Court Act 2000 covers claims arising out of agreements for the carriage of goods in a ship or for the use or hire of a ship.
Arrest has limits
In January 2026 the High Court Division vacated a time charterer's arrest of MV Telerig at Chattogram and released her without security.
Foreign seats dominate
Most charters for Chattogram choose English law with London or Singapore arbitration; Bangladeshi courts provide security and enforcement.
Awards are enforceable
Bangladesh is a New York Convention state; sections 45 and 46 of the Arbitration Act 2001 govern enforcement of foreign awards.
Anchorage time drives claims
Bulk carriers discharge into lighters at the outer anchorage, so laytime triggers, lighter supply and shifting clauses decide many disputes.
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What a charter party dispute lawyer in Chittagong deals with
A charter party dispute lawyer in Chittagong handles conflicts over the contracts under which ships are hired to carry cargo to, from and around Chattogram. These include unpaid hire and freight, laytime and demurrage, off-hire, cargo liens, unsafe port and berth allegations, early redelivery, and claims that pass from a charterparty into bills of lading and sale contracts. The sums are often large, and the ship that provides security may leave the anchorage within days.
Chattogram generates more of these disputes than most ports of its size. Large bulk carriers bringing grain, fertiliser, coal, clinker, steel scrap and edible oil usually cannot come alongside. They wait at the outer anchorage or the Kutubdia area and discharge into lighter vessels, so the time spent waiting, lightering and shifting becomes the subject of laytime calculations. Container feeders, coastal tankers and the lighterage fleet itself operate under their own charters and contracts of affreightment.
This page explains the law, the forums and the practical choices, from first notice to enforcement. It sits within our shipping, port and admiralty practice and works closely with our demurrage claims team and our ship arrest practice.
Types of charter and where disputes arise
Charterparties are usually on standard industry forms, amended by rider clauses negotiated for each fixture. The type of charter decides who bears which risk, and therefore what a dispute will be about.
| Charter type | What is hired | Common Chattogram disputes | Usual forum |
|---|---|---|---|
| Voyage charter | Carriage of a cargo for a voyage at a freight rate | Laytime and demurrage at the anchorage, notice of readiness, lightering time, freight deductions, cargo shortage | London or Singapore arbitration; Bangladeshi courts for security |
| Time charter | The ship and crew for a period at a daily hire rate | Unpaid hire, off-hire during delays, bunker quantity, speed and consumption, orders to discharge without bills of lading | Arbitration, usually under English law |
| Bareboat (demise) charter | The hull only; charterer supplies crew | Maintenance, redelivery condition, registration and mortgage questions, liability to third parties | Arbitration or courts; admiralty for in rem claims |
| Contract of affreightment | Carriage of a series of cargoes over time | Nomination failures, minimum quantities, rate disputes | Arbitration under the contract |
| Lighterage and coastal charters | Local lighter or coaster for transhipment from the anchorage | Detention of lighters, short delivery, vessel used as floating storage, allocation disputes | Local arbitration, civil suit or commercial court |
Disputes rarely stay inside one contract. A cargo receiver's delay at Chattogram becomes a voyage charter demurrage claim by the owner, which the charterer passes down to the receiver under the sale contract, and sometimes on again to a lighterage operator. A charter party dispute lawyer in Chittagong will map the whole chain early, because the terms of each link decide who ultimately pays.
The legal framework a charter party dispute lawyer in Chittagong applies
Governing law and arbitration
Most charterparties for ships calling at Chattogram choose English law and London arbitration, with Singapore as the second most common seat. Bangladeshi law matters at the edges: where the contract chooses it, where a local party is involved, where security is sought in Bangladesh and where an award is enforced here. Local lighterage and coastal contracts are more likely to be governed by Bangladeshi law, with the Contract Act 1872 providing the general rules on breach, damages and penalties, as set out in the Contract Act on the Bangladesh laws portal.
The Arbitration Act 2001 governs arbitrations seated in Bangladesh and the recognition and enforcement of foreign awards. Bangladesh is a party to the New York Convention, and section 45 allows a foreign award to be enforced on application to the court as if it were a decree, with refusal limited to the grounds in section 46. Our arbitration practice covers the procedure in depth.
Admiralty jurisdiction and arrest
The Admiralty Court Act 2000 gives the High Court Division jurisdiction over a list of maritime claims, including any claim arising out of an agreement relating to the carriage of goods in a ship or to the use or hire of a ship. That brings most charterparty claims within admiralty jurisdiction. Whether a ship can be arrested in rem depends on further conditions in section 4, including the link between the person liable and the ship at the relevant times.
The High Court Division applied those conditions in Admiralty Suit No. 61 of 2025, decided on 13 January 2026. A time charterer had obtained an ex parte arrest of the MV Telerig at the Chattogram outer anchorage on 23 December 2025, claiming the value of cargo withheld under a lien exercised in Turkey. The court vacated the arrest and released the vessel without security. It held that the claim was in substance a cargo claim by a party with no title to the goods, that the in rem conditions were not met, and that the plaintiff had failed to disclose a London arbitration clause when seeking ex parte relief.
An arrest at Chattogram is leverage, not a verdict. If the claim is weak, the owner is the wrong defendant or the arbitration clause is hidden from the court, the leverage can disappear within weeks.
Other laws that shape charter disputes
- Carriage of Goods by Sea Act 1925: applies the Hague Rules to outbound bills of lading; many charterparties incorporate the Hague or Hague-Visby Rules by a clause paramount.
- Bangladesh Flag Vessels (Protection of Interest) Act 2019: reserves a share of seaborne cargo for Bangladeshi-flagged ships. Under the 2023 rules, a foreign ship's local agent applies to the Mercantile Marine Department in Chattogram for a waiver certificate before loading, and failure to obtain it can delay a fixture.
- Chittagong Port Authority Act 2022: governs port charges, berthing and the authority's own claims against ships; shipping regulation more broadly sits with the Ministry of Shipping.
- Commercial Courts Act 2026: passed on 7 April 2026 to replace the January 2026 Ordinance, it creates specialised commercial courts for business disputes, with two listed for Chattogram Metropolitan and one for the district; admiralty claims remain with the High Court Division.
The issues that decide most Chattogram charter claims
Laytime at the anchorage
Whether laytime starts when a ship arrives at the outer anchorage, at the customary waiting place or only at the berth depends on the charter wording: berth or port charter, "whether in berth or not" clauses, reachable on arrival and the validity of the notice of readiness. Time lost to weather, lighter shortages, holidays or port closures may be excepted. Many Chattogram demurrage claims turn on a single clause, so read the charter and statement of facts together before conceding anything.
Lighterage and shifting
Lightering at the anchorage means the ship's discharge rate depends on the supply of lighters. Lighter shortages have recurred, and the allocation of lighters among importers has itself been disputed. Charters often address whether lightering time counts, who pays for lightering and shifting, and whether a shortage of lighters is the charterer's risk. Receivers and charterers should keep contemporaneous records of lighter requests and arrivals.
Hire, off-hire and withdrawal
Under time charters, disputes concern deductions from hire for alleged off-hire periods, performance claims and the owner's right to withdraw the ship for late payment. Withdrawal is drastic and must follow the anti-technicality notice provisions to the letter. Charterers sometimes fall into default when Bangladeshi foreign exchange payments are delayed, so build in time for bank processing.
Liens and bills of lading
Owners often exercise liens on cargo or sub-freights for unpaid hire. Cargo receivers who hold bills of lading may be bound by a charterparty arbitration clause if the bill incorporates it effectively. Whether a lien was validly exercised, and who can sue for the cargo, are exactly the questions that arose in the Telerig case. Our explainer on bill of lading disputes covers the cargo side.
Safe port, draught and river conditions
Chattogram is a river port with draught and length limits on the Karnaphuli channel, tidal windows for berthing and seasonal weather in the Bay of Bengal. Owners sometimes allege that a nominated berth or the anchorage was unsafe, or that the charterer ordered the ship to a place she could not reach fully laden. Charterers reply that the conditions were normal, well known and catered for by lightering. These claims depend on evidence about the specific day: pilot advice, port notices, tide tables and weather records. They are worth gathering even when no casualty has happened, because they also explain delay.
Discharge without original bills of lading
Original bills of lading for cargo bought on letter of credit terms often arrive after the ship, particularly where banks in several countries are involved. Charterers then ask owners to discharge against a letter of indemnity. If the wrong party takes delivery, the owner faces a misdelivery claim from the true holder and turns to the charterer under the indemnity. A charter party dispute lawyer in Chittagong will check the indemnity wording, the bank's position and the customs and port records of who actually took delivery. Our trade finance team handles the letter of credit side.
Before threatening arrest or arbitration, check four things: the governing law and arbitration clause, who your contract is actually with (owner, disponent owner or charterer), whether that party owned or demise-chartered the ship at the relevant times, and any time bars in the charter or incorporated rules.
How a charter claim is run from Chattogram
The sequence below reflects how a charter party dispute lawyer in Chittagong usually runs a claim when the ship is, or will soon be, within reach.
- Collect the contract chain. Recap, charterparty and riders, bills of lading, sale contracts and lighterage agreements. Identify governing law, arbitration clause and time bars.
- Fix the facts. Statements of facts, notices of readiness, port logs, lighter records, weather data, bunker surveys and correspondence. Facts at Chattogram are best gathered while the ship is still here.
- Quantify and notify. Prepare a laytime or hire calculation, serve claim notices in the form the charter requires, and diary every contractual deadline.
- Assess security. Decide whether arrest in the High Court Division is available on the facts, whether a P&I club letter of undertaking or bank guarantee can be agreed instead, and what the risk of wrongful arrest is.
- Commence arbitration. Appoint an arbitrator in time under the chosen rules, and keep the court informed if arrest is sought in aid of arbitration.
- Negotiate. Most charter disputes settle once security is in place and the documents are exchanged. Settlement terms should deal with release of security and any parallel claims.
- Enforce. Enforce an award in Bangladesh under sections 45 and 46 of the Arbitration Act 2001, or abroad where the losing party has assets.
Documents and evidence to assemble
Evidence wins charter disputes, and at Chattogram it disappears quickly as ships sail, lighters disperse and crews change. Gather these early:
- Fixture recap, charterparty, riders and all addenda, with any agreed amendments by email.
- Notice of readiness, statement of facts signed by master and agents, and port authority movement records.
- Lighterage nominations, lighter arrival and departure records, and any allocation correspondence.
- Bills of lading, letters of indemnity for discharge without bills, and cargo receipts.
- Hire statements, invoices, payment records and bank remittance confirmations.
- On- and off-hire surveys, bunker surveys, weather reports and performance data.
- Waiver certificates under the flag vessels rules and any customs or port authority orders affecting discharge.
Risks and common mistakes
Arresting without disclosing the arbitration clause
Ex parte arrest is granted on the claimant's presentation alone, so the court expects full and frank disclosure. In the Telerig case the High Court Division criticised the claimant for not disclosing a London arbitration clause and vacated the arrest without requiring any security. Arrest in aid of arbitration may be available in an appropriate case, but it presupposes a maintainable maritime claim and candour about the forum the parties chose. A charter party dispute lawyer in Chittagong will put the clause before the court and explain why security is still needed here.
Suing the wrong party or the wrong ship
Charter chains often include a registered owner, a disponent owner, one or more time charterers and voyage charterers. An in rem claim depends on the liability of the owner or demise charterer of the ship at the relevant time. A time charterer or disponent owner who is not a demise charterer may be liable in contract but not able to make the ship answer for the claim. Check ownership records and the charter chain before filing.
Missing time bars and notice provisions
Demurrage claims are commonly barred unless presented with supporting documents within a short period after discharge. The Hague Rules one-year limit may apply through a clause paramount. Arbitration clauses may require an arbitrator to be appointed within a fixed time. Bangladeshi limitation law runs separately for local contracts. Diary every deadline at the outset and obtain written extensions if negotiations will take time.
Back-to-back terms that are not back-to-back
Charterers often assume they can pass demurrage to the receiver under the sale contract on identical terms. In practice the sale contract may use a different laytime start, rate or exceptions list, or a shorter claim period. The result is a gap the charterer must absorb. Review both contracts side by side when trading into Chattogram, and align them before fixture where possible.
Ignoring Bangladeshi payment and flag rules
Hire and freight payments from Bangladesh pass through foreign exchange controls and bank processing, which can cause late payment and withdrawal risk. Separately, missing waiver certificates under the flag vessels rules can delay loading or discharge. Both are avoidable with planning, and both often become arguments about which party should bear the resulting delay.
Cross-border parties and international seats
Charter disputes involving Chattogram almost always have a foreign side: a Greek or Singaporean owner, a Dubai trader, an Indian or Chinese charterer, and arbitration in London or Singapore. A charter party dispute lawyer in Chittagong coordinates with the arbitration counsel abroad while securing the claim, gathering evidence and handling enforcement in Bangladesh.
TRW & Co's offices in Singapore, Dubai and London help where the arbitration or the counterparty sits abroad, and our Dhaka team appears in the High Court Division, where admiralty suits are filed even when the ship lies at Chattogram. For Bangladeshi importers and charterers sued abroad, we advise on the effect of a foreign award at home and on challenges under section 46 of the Arbitration Act 2001. Our explainers on charterparty arbitration and enforcing foreign arbitral awards set out the steps.
How TRW & Co helps as your charter party dispute lawyer in Chittagong
Fixture and contract review
Reviewing charterparties, riders, contracts of affreightment and sale contract shipping terms before fixture, with attention to Chattogram laytime, lightering and payment risks.
Laytime and hire claims
Preparing and auditing laytime, demurrage and hire statements, serving notices, and negotiating with owners, charterers and receivers.
Arrest and security
Advising on whether a ship can be arrested in the High Court Division, filing or resisting arrest, and negotiating letters of undertaking and bank guarantees.
Arbitration support
Working with London and Singapore counsel on evidence, witness statements and Bangladeshi law questions, and acting in arbitrations seated in Bangladesh.
Award enforcement
Enforcing foreign awards against Bangladeshi parties, and defending enforcement applications where the award is open to challenge.
Lighterage and coastal disputes
Claims over lighter detention, short delivery and coastal charters, including civil suits and commercial court proceedings in Chattogram.
We do not promise outcomes. We give a clear view of risk, cost and leverage at each stage. To discuss a fixture or a dispute, contact our Chattogram office, review all our practices, or see related pages on cargo claims, marine insurance and the Chattogram office.
Checklist for owners, charterers and receivers
- Confirm governing law, arbitration seat, rules and arbitrator appointment deadlines.
- Identify every party in the charter chain and who owned or demise-chartered the ship at the relevant times.
- Check laytime triggers for the outer anchorage and how lightering and shifting time are treated.
- Collect statements of facts, notices of readiness and lighter records while the ship is still at Chattogram.
- Diary demurrage claim periods, Hague Rules time bars and Bangladeshi limitation periods.
- Align charterparty and sale contract demurrage terms before fixture.
- Plan foreign exchange payments for hire and freight to avoid withdrawal risk.
- Before seeking arrest, test the in rem conditions and disclose the arbitration clause to the court.
- Agree security wording carefully so it responds to the arbitration award.
Frequently asked questions
01Can I arrest a ship at Chattogram for unpaid charter hire?
Often, but not always. A claim arising out of an agreement for the use or hire of a ship is a maritime claim under the Admiralty Court Act 2000, so an admiralty suit can be filed in the High Court Division. Arrest in rem also requires the conditions in section 4 to be met, including a link between the person liable and the ship. If the debtor is a time charterer rather than the owner or demise charterer, its ship may not be arrestable for that debt.
02Our charter has a London arbitration clause. Can we still get security in Bangladesh?
Possibly. The High Court Division recognised in January 2026 that an admiralty court may, in appropriate cases, order arrest in aid of arbitration, but only where there is a maintainable maritime claim and full disclosure. Tell the court about the arbitration clause when applying, explain why security is needed here, and commence or prepare to commence the arbitration promptly. Hiding the clause risks the arrest being set aside.
03When does laytime start for a ship waiting at the outer anchorage?
It depends on the charter wording. Under a port charter, laytime may start on arrival within the port and a valid notice of readiness. Under a berth charter, it may not start until the ship reaches the berth unless the charter contains a whether in berth or not clause or similar wording. Exceptions for weather, holidays and lighter shortages may also apply. Read the charter with the statement of facts before agreeing any calculation.
04Can a foreign arbitration award be enforced against a Bangladeshi charterer?
Yes. Bangladesh is a party to the New York Convention, and section 45 of the Arbitration Act 2001 allows a foreign award to be enforced on application to the court as if it were a decree. Enforcement can be refused only on limited grounds set out in section 46, such as incapacity, invalidity of the arbitration agreement, lack of proper notice or conflict with public policy. A charter party dispute lawyer in Chittagong will assess assets and timing before filing.
05Is a cargo receiver bound by the charterparty arbitration clause?
Only if the bill of lading effectively incorporates it. Bills issued under charterparties often contain incorporation wording, but whether it captures the arbitration clause depends on the words used and the governing law. If incorporation is effective, cargo claims against the carrier may have to go to arbitration rather than the courts. Check the bill of lading wording early, because it affects both forum and time bars.
06What is the Flag Vessels Act waiver certificate and why does it matter?
The Bangladesh Flag Vessels (Protection of Interest) Act 2019 reserves a share of seaborne cargo for Bangladeshi-flagged ships. Under the 2023 rules, the local agent of a foreign ship applies to the Mercantile Marine Department in Chattogram for a waiver certificate before loading cargo to or from Bangladesh. Delays in obtaining it can hold up a fixture, and the charter should say who bears that risk.
07Do Bangladeshi commercial courts hear charter disputes?
The Commercial Courts Act 2026 created specialised commercial courts for business disputes, which may be relevant to local lighterage and coastal charters governed by Bangladeshi law without an arbitration clause. Admiralty claims, including in rem claims against ships, remain with the High Court Division under the Admiralty Court Act 2000. Charters with arbitration clauses go to arbitration. A charter party dispute lawyer in Chittagong will choose the forum that gives security and an enforceable result.
Sources and official materials
- Admiralty Suit No. 61 of 2025 (MV Telerig), judgment of 13 January 2026 — Time charterer's arrest vacated; in rem conditions; disclosure of arbitration clause
- Arbitration Act 2001 (Bangladesh laws portal) — Domestic arbitration and enforcement of foreign awards
- Contract Act 1872 (Bangladesh laws portal) — Breach, damages and liquidated sums in local contracts
- Admiralty Suit No. 08 of 2022 (MT Gala), order of 11 March 2025 — Arrest power and release on guarantee
- Foreign ships face uncertainty in getting key certificate (Daily Star, 2023) — Flag Vessels Act waiver certificates under the 2023 rules
- Ministry of Shipping — Ministry overseeing the Department of Shipping and the Mercantile Marine Department
- Govt to address gaps in Commercial Courts Act (Daily Star) — Commercial Courts Act 2026 passed in April
General information only, current as at 27 October 2026. It is not legal advice and does not create an advocate–client relationship. It reflects the law of Bangladesh unless stated otherwise, and the law, court practice and official fees change frequently. Check current official sources and take advice on the facts of your matter.
