Cargo retention clause is a legal instrument used in the shipment of liquid cargoes. The instrument gives a charterer the legal basis to file for freight deduction if his cargo is not in the same quantity as described in the bill of lading after being unloaded. In this regard, the shipowner bears all the risks in cargo discrepancies.
When shipping liquid goods, there may be a shortage in the quantity after discharge. The reduction could be as a result of temperature or/and unpumpable portion of the cargo from the ship storage space. If this occurs, the charterer shall have the right to deduct, from freight rate, an amount equivalent to the value of the reduced quantity.
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