Laytime

Question 1

Laytime

Answer 1

the period of time allowed to the Chrtr under the provisions of the C/P to load and/or discharge the ship’s cargo

Question 2

What does it mean seeing the

computations of laytime and the resulting calculation of demurrage or despatch

Answer 2

a means of settling whether the voyage has gone slower or faster than was expected under the terms of the C/P

Question 3

Laytime is usually expressed in which two ways

Answer 3

1. A fixed number of days (or hours)
2. a fixed tonnage of cargo per day (or occasionally per hatch/hook/crane per day)

Question 4

Before laytime can commence,

there are certain conditions the Owner must meet

Answer 4

1. The ship must have “arrived” at the loading (or disch) berth or port as stipulated in the C/P
2. The ship must be, in all respects, fully prepared to load/disch
3. The ship must have tendered the NOR as prescribed, to the shippers or receivers

Question 5

What is Gencon ‘94 summed up as

Answer 5

if the berth is not available upon arrival, the vessel can typically tender the NOR and laytime would start

Question 6

What does it mean to have

Arrived

Answer 6

the basic bargained duty to transport the cargo hasn’t been met until the ship actually reaches the place where it is bound to be ready for cargo operation, and it cannot successfully tender NOR until it has reached such place

Question 7

What does it mean to be

Prepared to load (or discharge)

Answer 7

means being physically ready to do so:
* the hatches must be ready to open, and the ships gear must be ready to use, if agreed that it may be used
* ship must be ready to receive the intended cargo, which usually comes down to a question of cleanliness

Question 8

Tendering of NOR

Notice of Readiness*

Answer 8

once the ship has arrived and is fully prepared to load, the Master must take the affirmative step of tendering to the chrtr or whoever the chrtr designates

the ship appearing in the harbor is not sufficient as tendering NOR

Question 9

In regards to Time Commencement

the normal wording of GENCON states:

Answer 9

laytime for loading and discharging shall commence at 1300 hours if notice of readiness is given up to and including 1200 hours and at 0600 hours next working day if notice given during officer hours after 1200 hours

Question 10

Assuming that a vessel has made a valid tender,

When does time commence?

Answer 10

the general rule is that laytime commences immediately, but this rule is often modified by the particular C/P terms to provide some delay in commencement

Question 11

Further complications can arise

in terms of time commencement

Answer 11

if the C/P contains a requirement that the vessel load “in turn” or “in regular turn”. since priority of loading is decided by local authorities, this is highly unpredictable and should be avoided by an owner, since the laytime will normally not count while awaiting turn

Question 12

“in regular turn”

Answer 12

meaning that the chrtr is under no obligation to work the vessel out of his regular turn. thus laytime will not commence until the vessel is on the berth

this is rarely used today

Question 13

“in turn not exceeding 48 running hours”

Answer 13

meaning laytime starts as soon as the ship’s turn arrives, if this occurs before the 48 hours max time allotted; otherwise when the 48 running hours has expired”

Question 14

“time to commence 24 hours, Sunday and holidays expected, after vessel is ready to unload”

Answer 14

this is the provision at discharge in the AMWESLH charter used in the coal trade

Question 15

“days” and “running days”

Answer 15

each denoted consecutive days of the calendar from midnight to midnight, inluding Sundays and holidays, unless the C/P states otherwise

Question 16

SHEX

Answer 16

charter parties usually provide that Sundays and holidays do not count as laytime, even if work is performed during these periods (EIU); they would only count if work is the wording “unless used” (UU) we substituted

Question 17

“Working Days”

Answer 17

comprises 24 hours, running 0000-2400, this does not mean that the hours from when time starts to count until the first midnight do not count; it is just that the calculation of whole days starts from midnight

Question 18

“Weather Working Days”

Answer 18

has the same meaning as “Working Day”, except that if inclement weather prevents the loading/disch of the vsl on a working day the lost time does not count (ie, is “excepted”) against laytime

Question 19

Non-reversible laytime

Answer 19

the time used is subtracted from the time allowed at load port, and the same method is followed for the discharge port. demurrage/despatch, if any, is payable on completion of loading likewise on completion of discharge

*is the general rule in the absence of specific agreements

Question 20

Reversible laytime

Answer 20

the total laytime allowed for the load and disch ports is calculated and added together, and from that is deducted the total loading and discharging time used. the demurrage/despatch is calculated from the resuling net figure

Question 21

Regarding reversible laytime,

this method favors the chrtr’s interests in a couple of ways:

Answer 21

1. if laytime is exceeded at load port, you can make it up at the disport
2. demurrage, if any, can only be calculated after disch so payment of demurrage to Ows is delayed as long as possible

Question 22

Demurrage

Answer 22

is the amount of money agreed upon in the C/P to be paid to the vessel owner when the time used for loading and/or discharging exceeds the agreed/bargained time

Question 23

Despatch

Answer 23

is the money paid by the shipowners to the chrtr when the chrtr completes the loading and/or discharge before laytime ends. most c/p’s provide that despatch is one-half of the demurrage rate, but this is not alwasy the case

seen as an incentive to the charterer

Question 24

How is the concept of despatch abused

by Charterers

Answer 24

by fixing with far slower load rates than will actually be attained. in effect guaranteeing despatch… the astute owner will normally not fall victim to this and might lower the demurrage $$ rate in return