Cesser & lien clause

Answer

A Cesser Clause (or Cesser & Lien Clause) is a standard charterparty mechanism

—most commonly used in voyage charterparties

—designed to relieve the charterer of liability once the cargo is loaded, transferring all subsequent payment liabilities to the cargo owner/consignee 

• The Cesser Part: Stipulates that the charterer’s liability under the charterparty ceases completely upon completion of cargo loading and execution of the Bills of Lading.

• The Lien Part: Grants the shipowner a legal possessory lien over the cargo at the discharge port to secure payment for unpaid freight, deadfreight, demurrage, and storage fees.

• Local Enforcement Issues: In many jurisdictions, enforcing a lien requires court orders or costly discharge into bonded warehouses, which can cause significant operational delays.

• Discharge Demurrage Disputes: Exercising a lien often halts cargo discharge, accumulating further demurrage and delay costs while the underlying dispute is settled.