# SECTION 5 LAYTIME

1. DURATION OF LAYTIME 2. COMMENCEMENT OF LAYTIME 3. INTERRUPTIONS

4. CALCULATION
5. LAYTIME CLAUSE

Laytime

Laytime shall mean the period of time agreed between the parties during which the shipowner will make and keep the vessel available for loading or discharging without payment additional to the freight. Laytime calculating is not an activity to be undertaken lightly. There may be considerable sums of money at stake, which will have a noticeable effect on a ship‘s profitability or on a charterer‘s income.In this section we mainly deal with laytime as well as the calculation of laytime , demurrage and despatch.

1 DURATION OF LAYTIME
Duration of laytime can be sub-divided into three categories:
  

1.1 Definite laytime 1.2 Calculable laytime 1.3 Indefinite laytime

The use of definite laytime is the standard practice in the tanker trades and is almost always fixed at 72 hours being allowed for the combined loading and discharging. Terms might be: ‗Cargo to be loaded within 5 weather working days of 24 consecutive hours‘ or ‗7 working days of 24 consecutive hours. for all purposes‘. .1. specifies how many days/hours are allowed. weather permitting. whether for loading or for discharging or for both activities. the latter sometimes being known as for ‗all purposes‘.1 Definite Laytime    The simplest of the categories. regardless of the size of vessel.

000 tones (5% more or less).000 tonnes daily = 4. available laytime can be assessed as follows: 41. Thus.e. if the ship eventually loaded 41.000 tones daily. A contract will state that a vessel is to load and/or discharge at a set rate of tons/tonnes per day/hour. However. 40.258 tonnes of cargo. it might be that the ship‘s master has a margin within which to load .1258 days . minimum/maximum. at a rate of 10. Thus. for a ship loading 40.2. there will be 4 days of laytime available to her charterers.000 metric tones of cargo.2 Calculable Laytime 1.1 Tonnage Calculations    Tonnage calculations are the most common types of calculable laytime.g.1.258 tonnes ÷ 10.

1575 tonnes cargo in the largest cargo compartment and vessel has five (5) hatches‖.000 tonnes. .2 Hatch Calculations   Hatch calculations are more complicated than tonnage calculations but occasionally need to be performed.2. there are well-established procedures to assist. Let us assume that general cargo vessel ‗HERON‘ is discharging bagged wheat flour on the basis of: ―A discharge rate of 175 tonnes per hatch daily. total cargo of 7. nonetheless.1.

1. a hatch that is capable of being worked by two gangs simultaneously shall be counted as two hatches. Thus 7. the result of multiplying the agreed daily rate per hatch by the number of the vessel‘s hatches. Nevertheless. Thus 5 (hatches) x 175 tones = 875 tonnes daily. The vessel is to be discharged at 175 tonnes per hatch daily. Thus: Laytime = (Quantity of cargo)/(Daily Rate × Number of Hatches) = Days Each pair of parallel twin hatches shall count as one hatch.2.1 Per Hatch Daily      PER HATCH PER DAY shall mean that the laytime is to be calculated by dividing (A). the quantity of cargo. .2.000 tones cargo ÷ 875 = 8 days permitted laytime. by (B).

by (B). . the result of multiplying the agreed daily rate per working or workable hatch by the number of hatches serving that hold. the quantity of cargo in the hold with the largest quantity.) = Days Each pair of parallel twin hatches shall count as one hatch.1.2 Per Workable Hatch Ddaily    ‘PER WORKING HATCH PER DAY‘ (WHD) or ‗PER WORKABLE HATCH PER DAY‘ (WHD) shall mean that the laytime is to be calculated by dividing (A). Thus: Laytime = (Largest Quantity in one Hold)/(Daily Rate per Hatch × Number of Hatches serving that Hold. Nevertheless.2.2. a hatch that is capable of being worked by two gangs simultaneously shall be counted as two hatches.

    Taking the above example of the ‗HERON‘.575 tonnes would first be divided by 2 before applying the factor of 175 tonnes daily. In that case.571428 days laytime. . 3 hold and tweendeck beneath No. 3 hatch constitutes the ‗largest‘ unit. 1. Reference to the ‗stowage plan‘ shows that 1. the unit tonnage must be sub-divided. for example. 2 hold and tweendeck and the laytime duration calculation would then be: 1. the largest indivisible cargo unit would become the 1.575 tones ÷ 175 daily = 9 days laytime overall.575 tones contained in No. where two or more hatches serve the largest unit of cargo. first it is necessary to establish the ‗largest‘ unit of cargo in the vessel. Thus 1.500 tonnes contained in No. 3 hold and tweendeck. However. Assuming two hatches served No.500 tones ÷ 175 daily = 8.

‗customary quick despatch‘ (CQD) or ‗fast as can‘ (FAC) terms.  . ‗customary despatch‘ (CD).1. The risk of bad weather.3 Indefinite Laytime  Occasionally. port congestion and such like are all for the Shipowner / operator to bear. an shipowner or operator will agree for his ship to be loaded or discharged as per ‗custom of the port‘ (COP).

3 The notice of readiness must be tendered.2 COMMENCEMENT OF LAYTIME 2. . 2. 2.2 The vessel must in all respects be ready to load or discharge the relevant cargo.1 The vessel must have ‗arrived‘ at the place where cargo operations are to be performed.

Simply put it could be considered the time that the vessel arrives at the agreed place. ―The vessel shall proceed to Ras Tanura‖ is less onerous than ―The vessel shall proceed to No. The former is known as a ―port charter‖ and the latter a ―berth charter‖. the more detailed the description of that place the more careful the shipowner must be to reach that place. laytime commences when a vessel is an ―arrived ship‖.2 berth Tas Tanura‖. If the vessel berths on arrival without delay there can be no disagreement as to when the vessel is ready and the ―clock starts‖ but if there is a delay the situation is less clear. .2. Whether a ship is an arrived ship will depend on whether the charter party is a port charter party or a berth charter party. Therefore.1 Arrived ship   In general.

If the word ‗BERTH‘ is not used. this definition shall still apply. . The duty to reach this agreed point or place for loading or discharging is very tough on the shipowners.1 Berth charter parties    ‘BERTH‘ shall mean the specific place within a port where the vessel is to load or discharge. Where the charter parties expressly reserve to the charterer the right to name a particular dock or berth.2. the vessel is not considered to have arrived. Even if the vessel has to wait at the immediate vicinity for the particular berth agreed in the charter party. the laytime do not begin until the ship has arrived at that dock or berth. but the specific place is (or is to be) identified by its name. Therefore any loss of time in waiting for the berth to become vacant will fall on the shipowners.1.

. and that technically is still a berth charter party. ‗WHETHER IN BERTH OR NOT‘ (WIBON) shall mean that if no loading or discharging berth is available on her arrival the vessel. one safe port. on reaching any usual waiting-place at or off the port. Laytime or time on demurrage shall cease to count once the berth becomes available and shall resume when the vessel is ready to load or discharge at the berth.WIBON   Nowadays it is more common to find port charter parties. Admittedly many charter parties are agreed on the basis of one safe berth. But there is the usual provision of ―whether in berth or not‖ inserted in the charter parties and that will effectively expand a berth charter party into a port charter party. shall be entitled to ender notice of readiness from it and laytime shall commence in accordance with the charterparty.

anchorages. The importance. this definition shall still apply. within which vessels load or discharge cargo whether at berths. The English courts once held that the vessel must be within the commercial area of the port and this had been amended to mean the ―normal waiting area for a port‖.2. . being as to who will pay for the time waiting for a berth or the commencement of the cargo operation. of course. but the port is (or is to be) identified by its name.1. If the word ‗PORT‘ is not used. or the like.2 Port charter parties   ‘PORT‘ shall mean an area. buoys. and shall also include the usual places where vessels wait for their turn or are ordered or obliged to wait for their turn no matter the distance from that area.

If she is at the place where waiting ships usually lie. the ship is an arrived ship when. . proof of which lies on the charterer. for she was then at the immediate and effective disposition of the charterer.Rule and case   The rule is that the charter party names a port simply. Held by the House of Lords that she was an arrived ship when she reached the anchorage. A vessel carrying grain under a port charter party anchored at the Bar anchorage at Liverpool. if she cannot proceed immediately to a berth. she is in such a position unless there are some extraordinary circumstances. The anchorage was 17 miles from the usual discharging berth. she has reached a position within the port where she is at the immediate and effective disposition of the charterer. but was the usual place where grain vessels lay while awaiting a berth. without further particularity or qualification.

whether in berth or not (WIBON). The above terms are often combined into the one abbreviation ‗WWWW‘. whether in free pratique or not (WIFPON) and whether custom‘s cleared or not (WCCON). Contracts usually specify that notices of readiness can be tendered from a normal waiting place.1. .2.3 Port Congestion   Port congestion is now commonplace and brings with it a further worry for shipowners in that it is the reason for most cases of lengthy delay and the accruing of huge demurrage. Who must bear the financial risk of delay in a congested port will depend on what is stated in the charter party. whether in port or not (WIPON).

That is in the Kyzikos. But English law has restricted the meaning of WIBON somewhat. .Kyzikos case  WIBON was designed to convert a berth charter party into a port charter party and to ensure that under a berth charter party notice of readiness could be given as soon as the ship had arrived within the port concerned so that laytime could start to run on its expiry.

as fog had closed the pilot station. The berth she was supposed to proceed to was available at all times. the discharge port. at 0645H on December 17. Notice of readiness was tendered by the master soon enough.‖ So it was a ―berth‖ charter. Time to count ---WIPON/WIBON/WIFPON/WCCON----‖ The Kyzikos arrived at Houston. always accessible berth(s) each port-----. In the charter party in the Gencon form.  The Kyzikos was fixed to load a cargo of steel products in Italy for Houston. . she could not proceed untill December 20. on which date she was berthed at 1450H. But Clause 5 stated: ―Time to commence at 2 pm if notice of readiness is given before noon at 8 am next working day if notice given during office hours after noon. the discharge port or place was state as ―1/2 safe always afloat. 1984. However. 1984.

the charterers would only accept laytime commencing after the vessel became an ―arrived‖ ship when she berthed on December 20.  The shipowners claimed that laytime commenced at 1400H on December 17. Only a little over three days demurrage was in dispute ----US\$30.72 --.‖ . Thus. it was decided that the shipowners‘ claim succeeded in full on the ground that ―on well established authority the words had the effect of making the charter into a port charter. But the charterers. In arbitration.but the case was taken all the way to the House of Lords.435. maintained that WIBON was not protection for the shipowners if the berth was available and the vessel was prevented from berthing due to other reasons beyond the control of the charterers.

It was held that there was no previous decision of any court which was binding on him on the point. the WIBON provision in the ordinary case has. still less that it actually converts a berth charter into a port charter‖. the award was reversed. however. .  On appeal in the High Court. The Lord said ―when a vessel is unable to come alongside because no berth is available. In the Court of Appeal. read as a whole. support the proposition that it has that effect in law. the arbitration award was restored again and it was held that WIBON turned a berth charter into a port charter so that time commenced to run when the vessel was waiting in the named port of destination to proceed to berth. but in my view it cannot be said without doubt that the authorities which I have considered. in practice. that effect.

It appeared the main reason for the House of Lords‘ decision was based on the absence of any reported case which applied the WIBON to any cause of delay other than the non-availability of a berth. the Court of Appeal‘s decision was unanimously reversed. Lord Brandon gave the only reasoned speech. Lord Brandon has said that ―whether in berth or not‖ was the shorthand for ―whether in berth (a berth being available) or not in berth (a berth not being available). hence preventing the vessel in berth charter to become an arrived ship. . finally. thus justifying the inference that purpose of WIBON was only for the limited application of non-availability of berth/congestion.  In the House of Lords.‖ It is clear that WIBON will still protect the shipowners in the event of a port congestion. WIPON would be even better in protecting the shipowners if the waiting for the nominated berth to be free is not within the port limit.

.4 Time lost in waiting for berth to count   “Time lost in waiting for berth to count as laytime‖ is a well-known printed clause that can be found in the Gencon form of charter and is freely incorporated by many shipowners in the rider clauses of other forms of voyage charter parties. The purpose of the clause is to make charterers assume the financial burden of the risk of waiting for a berth due to congestion--. It is a further important provision aimed at relieving shipowners of the hardship caused by narrow interpretation of the ―arrived ship‖ under English law.1.2.be it a port charter or berth charter.

The shipowners claimed that the whole of the seven days and six hours would have to be counted continuously under the ―time lost‖ provision. The charter party was a port charter based on the Gencon form. a Friday (non working day in Tripoli) and a legal holiday. This would effectively exhaust all the laytime (eight days and seven hours) save for only 25 hours. because it took priority over the ―laytime‖ provision. as proper laytime. the shipowner argued. Case study . If this seven days and six hours waiting time counted. laytime being triggered off shortly after the notice time. That seven days and six hours. The Darrah rightly gave notice of readiness to discharge on January 2 1973. the non-working period would have to be disallowed under the charter party. The shipowners ended up with 10 more days on demurrage than the charterers would admit. included two non-working days. The Darrah had to wait for an available discharge berth for over seven days. and a period from noon on the day before each. the vessel was thereafter on demurrage counting continuously without applying any excepted periods for the benefit of the charterers. These 25 hours were promptly used after berthing and so. The Darrah was chartered to carry a cargo of cement from Novorossisk in the Black Sea to Tripoli. The Darrah duly completed her carrying voyage and reached a usual waiting place for her turn within the limits of the port of Tripoli.

with all the exceptions to be applied. as if the vessel had actually been berthed. there is no conflict between the laytime clauses and the ―time lost‖ provision. it was held that the ship was an arrived ship. it was held that where time was lost waiting for berth. the laytime provisions would apply. So in the case of an arrived ship under a port charter. Case . because both calculations are the same and neither need prevail over the other.   In the High Court. all the time so lost was to count whenever and wherever the waiting took place. and the special exceptions with regard to laytime calculation would only operate until the berth was ready. But even in the berth outside the port would still be counted as the laytime with all the exceptions like Sunday and holidays being excluded. When it came to the Court of Appeal. The House of Lords now had the chance to correct the earlier decisions and held that the ―time lost‖ provision would have to be computed exactly like the permissible laytime calculation. In the House of Lords. justice was further expanded.

Such time shall cease to count once the berth becomes available. on expiry of any notice time provided in the charterparty. . the ―time lost‖ provision shall mean that if no loading or discharging berth is available and the vessel is unable to tender notice of readiness at the waiting-place then any time lost to the vessel shall count as if laytime were running. When the vessel reaches a place where she is able to tender notice of readiness laytime or time on demurrage shall resume after such tender and. in respect of laytime. or as time on demurrage if laytime has expired.Voylayrules 93   According to the ―Voylayrules 93‖.

Readiness means that the vessel must be in all respects ready to load or to discharge in both the legal and physical sense.2. .2 Readiness   Not only must a ship have arrived under the charter party but she must also be ready in order to tender effective Notice of Readiness so as to trigger off the laytime clock.

.2.1 Free pratique    Requirement for free pratique is a legal readiness that a vessel has to fulfil. Some ports are the other extreme that free pratique could not be obtained from the authority in accordance with the port regulations in force until the vessel had actually berthed.1 Legal Readiness 2.1. Some ports make it very simple by radio if the vessel‘s last port of call is a healthy place.2. In normal circumstances free pratique is mere formality. It used to be harsh on the shipowners. However the time for its granting depends entirely on the custom of the particular port that the vessel is calling at.2.

The Delian Spirit [1971] 1 Lloyd‘s Rep. She was directed to her berth on 24 February and arrived there at 1320 hours. Free pratique was granted at 1600 hours. . It was held that the mere fact that free pratique had not been obtained did not prevent the vessel from being able to commence the laytime counting.Case   A vessel reached the commercial area of Tuapse at 0100 hours on 19 February. Her master gave notice of readiness to load. 506. as long as the free pratique could be obtained at any time and without the possibility of delaying the loading or discharging. Loading began at 2150 hours.

1.2 Customs clearance  Normally this is again an idle formality. If the vessel supplies copies of cargo manifest and other necessary documents customs clearance will be almost automatic.2. But if shipowners voluntarily or negligently permit the customs clearance as a condition precedent in the charter party before the ability to tender notice of readiness they can be caught badly.2. .

It was not possible for a vessel to obtain customs clearance at Mersey Bar. took effort and expense to procure a lay-by berth in Seaforth Dock for the vessel. . It was held by the High Court that the first notice of readiness was valid and the clause entitled him to do so if she was unable to berth immediately on arrival. so as to obtain custom clearance and then served a second notice of readiness four days later than the first one. but without prejudice to it. arrived at the Mersey Bar anchorage and gave notice of readiness to the charterers. So the shipowners. Puerto Rocca. whilst maintaining the validity of the notice of readiness tendered upon arrival at the anchorage. The charterers rejected on the ground that the vessel was not custom cleared in accordance with the clause.Case   The vessel.

at a loading port. holds must be cleaned and prepared for receiving cargo and.g.2 Physical readiness   A ship must be physically capable of performing cargooperations – e. .2. if the contract so specifies. available and accessible the ship would be considered ready unless there was some overriding clause in the charterparty which stipulated conditions beyond these. holds must be inspected and declared suitable by an appropriate authority before notice of readiness will be accepted.2. In general providing that all the space requited for the carriage of the contracted cargo is reasonably clean.

. and have laytime commenced while simultaneously effecting repairs to the main or auxiliary engines. Therefore the vessel is perfectly entitled to tender notice of readiness.1 Seaworthiness   The vessel must of course be seaworthy.2.2.2. unless of course she cannot even shift to the loading or discharging berth designated and/or safely to load or to discharge cargo. But it seems she need not be seaworthy in the sense of being ready and able to sail to the open sea. or having bunker supplied in preparation for sailing after cargo work.

Unless there is an express provision in the charter party that notice of readiness may not be tendered until after inspection by the charterer‘s inspector or other relevant authority.2.2. then such inspection is a mere idle formality and not a condition precedent to the ability to tender notice of readiness and commencement of laytime. then if the vessel is in all respects ready to load and all that is required is a routine inspection of holds in which nothing is found to cause delay for the loading. .2 Cargo holds and inspection  The ship must be completely ready in all her holds so as to afford the charterers complete control of every portion of the ship available for cargo.2.

2.2. The vessel is ready to tender the notice of readiness if the facts reveal that the loading or discharging method does not require the use of ship‘s gears or shore crane could be readily employed. .2.3 Cargo gears  It appears that the rule for readiness to load or to discharge applicable to cargo gear is not as stringent as the rule for cargo space.

The Judge held that the vacuators were essentially equipment which was to emerge from the shore when the operation of discharge was to commence. contending the vessel was not ready without vacuators. The vessel eventually berthed July 12. enabling the master to re-tender a second notice of readiness on June 17. it looked like the charterer was finding any excuse to decline the notice of readiness to avoid laytime from commencing. Therefore the notice of readiness on arrival Alexandria was a valid notice of readiness. arrived at Alexandria on the May 26. The charterer resisted. The shipowner claimed demurrage. 1983 and tendered notice of readiness. To the shipowner. when it was known there would be prolonged delay in berthing. Demosthenes. So the shipowner was forced to take precautions to make the notice of readiness mature just in case. . the vessel as a vessel was ready. and another three were put on board on June 15. It was rejected on the ground that the vessel did not have the necessary vacuators for the discharging according to clause 18 which stated that shipowner to supply sufficient vacuators and consequently the vessel was not considered ready for discharge. Three vacuators were arranged to be put on board two days later on May 29. without prejudice to the earlier one.Case   The vessel.

this must affect the vessel‘s ability to tender and effective notice of readiness. the overdraft is minimal and does not effect the ability to go alongside a discharging berth. if the charter party is explicit on the arrival draft. But more often. In that case. and the sole reason that the vessel is waiting at an outer anchorage is congestion of the port. It may hamper the ability of the vessel to go alongside to commence discharge.4 Lightening at discharge port   Arrival draft for the discharge port or berth can be a serious matter. unless lightening is carried out at outer anchorage until desired draft is met.2.2. .2.

1985 that the overstowed cargo was cleared and the maize cargo became accessible. It was a part cargo and the shipowners were expressly given the right to complete the vessel with other lawful merchandise. The arbitration was in favour of the shipowners for the ―bad‖ notice of readiness tendered on January 20 became ―effective‖ or ―revived‖ when the maize cargo was fully accessible on February 6. It was even later February 19. However. 1985 before a start was made on unloading the bagged maize. it was not until February 6.The Mexico I    The Mexico I had been chartered to carry 5000 tons of bagged maize from Argentina to Angola. The vessel did load other cargo at Santos after loading the 5000 tons of bagged maize at Necochea. and gave notice of readiness on January 20. The vessel arrived at Luanda. 1985. Angola. .

was rejected. . no further notice of readiness was required. 1985.  The charterers appealed to the court. The correct conclusion in law is that the notice became effective on the time 1025 on February 6. 1985. 1985. The notion that the invalid notice of readiness became inchoate and automatically became effective without further notice at the moment when the ship was actually ready. the court said that the facts of the particular case show that the charterers no longer have the right to insist upon a further notice of readiness being given. The charterers took the matter further to the Court of Appeal. the charterers‘ appeal was allowed and the laytime started to count. As a result. It was held to be wrong insofar as it suggested that when a notice of readiness was given before the vessel was in fact ready. In upholding the award in the shipowner‘s favour. at 1130 on February 19. not from the moment of the invalid notice of readiness on January 1. but from the moment of actual discharge given later. not from the time the vessel was ready physically and cleared of overstowed cargo on February 6.

3. if the ship has not arrived at the load port.2 Arrival Before Laydays   (1)Meaning of Laycan It is usual in any charterparty to specify ‗laycan‘ dates. Laydays being the time when the commencement of loading is contracted to take place and canceling date being the point at which. . ‗Laycan‘ is an abbreviation of laydays/canceling date.2. In practice the ‗laycan‘ consists of a spread of dates although it is not uncommon for a single date to be specified for both. the Charterer is free to cancel the contract.

This is because Dry cargo charters usually require notice to be given in office hours with laytime starting to commence at the beginning of the next work period following. However the period between then and the point at which the agreed laydays commence will be excluded time under the c/p terms. Had the notice been given during office hours in the first layday time would only have started to count at 13:00 or 14:00 on that day.(2)Giving NOR before laydays    There is nothing to prevent a vessel that arrives before her laydays are due to start from giving notice of readiness. By giving notice before laydays it is likely that the time allowed to the Charterer will have passed and that therefore time will start to count at 00:00 hours on the first layday. From a legal viewpoint laytime will start to count in accordance with the relevant terms of the c/p. In order to avoid such situations Charterers will try to include clauses expressly prohibiting presentation of the notice of readiness before the commencement of laydays. There are advantages to the Owner when giving notice before laydays particularly in the dry cargo trades. .

‗at 0700 hours next working day‘ or ‗ 12 hours following tendering and accepting notice of readiness‘. laytime will commence in accordance with the contract terms – e.(3)Commencement of laytime   Once a vessel has arrived at a port. complied with all formalities and contractual commitments and tendered notice of readiness. . For the tanker trades it is common practice to allow the tendering of the notice of readiness to take place at any time on any day and for time to begin to count 6 hours later.g.

Never think that as work has already started a Notice of Readiness is not needed. Vital.(4)Different of time counting and actual loading or discharging   It is important to remember that the commencement of time counting and the commencement of actual loading or discharging can. Take. Such a ship would have been working for over four days before time even commences to count. for example. a charterparty with 36 hours turn time ‗even if used‘ also Sundays and Holidays excepted ‗even if used‘ and Notice of Readiness to be given during normal office hours. be quite different. say. therefore. under certain circumstances. work the entire weekend and time would not commence to count until 36 hours after 8 am Monday. . Such a ship could arrive at. 6 pm on a Friday. to ensure also that Notice of Readiness is handed in at the earliest permissible moment.

3. and there was no difference between loading and discharging in that all holds for the intended cargo must be ready in all respects so as to give the charterer complete control of every portion. At the discharge port. This the shipowner did overstowing above flour in four out of the five cargo holds. The charterer submitted that an overstowed cargo is exactly like a jammed hatch cover. liberty was given in the charter for the shipowner to top up with general cargo en route. . It was held that the charterer was right in his contention. In the later case of The Mexico I as previous mentioned gives the same result. effectively blocking the charterer‘s cargo. The shipowner did nothing wrong in that. Laytime did not begin to run until all the flour cargo was accessible. which necessarily meant to overstow. argument arose on whether effective notice of readiness could be tendered until all overstowed cargo was removed and all flour cargo was accessible? The shipowner argued that he had an express right to complete with cargo en route.3 Overstowage   A charter entered into under the Gencon form for the carriage of part cargo of flour.2.

3. unless a vessel‘s cargohandling equipment breaks down. contracts frequently include express clauses interrupting laytime in the event of: 3.3 Strikes 3.5 Breakdowns . Nevertheless.1 Weekends and Holidays 3.2 Shifting to and Between Anchorages/Berths 3. INTERRUPTIONS Once laytime has commenced.4 Bad Weather 3. it will continue unhindered until the completion of cargo operations or until laytime expires or demurrage commences.

Sundays and Holidays Excepted) SSHINC (Saturdays.3. Sundays and Holidays Inclusive) .1 Weekends and Holidays       SHEX terms (Sundays and Holidays Excepted) FHEX terms (Fridays and Holidays Excepted) SHINC (Sundays and Holidays Inclusive) FHINC (Fridays and Holidays Inclusive) SSHEX (Saturdays.

Any part of a day shall be counted pro rate. ―Weather working day‖ shall mean a working day of 24 consecutive hours except for any time when weather prevents the loading or discharging of the vessel or would have prevented it. had work been in progress. Running days or consecutive days shall mean days which follow one immediately after the other. . ―Working days‖ shall mean days not expressly excluded from laytime.Meaning of day     ‘DAY‘ shall mean a period of twenty-four consecutive hours running from 0000 to 2400 hours.

towage and pilotage – should also be for the account of the Charterers. should the agreed number of berths/anchorages be exceeded.3.g. time spent shifting between berths/anchorages is normally taken to be for shipowner‘s account.2 Shifting to and Between Anchorages/Berths    It is common practice for contract wording to permit loading/discharging at more than one berth or anchorage at each port. However. Consequently. it becomes reasonable that the shifting time involved should count as laytime and that the expenses involved – e. In almost all trades if the vessel has anchored off on arrival either to wait for suitable tides or a free berth the time taken to shift to the berth is excluded from laytime. .

Refusal to work overtime.3 Strikes  ‗STRIKE‘ shall mean a concerted industrial action by workmen causing a complete stoppage of their work which directly interferes with the working of the vessel. go-slow or working to rule and comparable actions not causing a complete stoppage shall not be considered a strike.  There is nearly always an express clause in a contract to the effect that delays due to shore strikes are not to count as laytime.3. . A strike shall be understood to exclude its consequences when it has ended. such as congestion in the port or effects upon the means of transportation bringing or taking the cargo to or from the port.

4 Bad Weather (1)weather working days  WEATHER WORKING DAY‘ (WWD) or ‗WEATHER WORKING DAY OF 24 HOURS‘ OR ‗WEATHER WORKING DAY OF 24 CONSECUTIVE HOURS‘ shall mean a working day of 24 consecutive hours except for any time when weather prevents the loading or discharging of the vessel or would have prevented it. . For many years it had been accepted that the former expression favoured Charterers and the latter favoured shipowners. weather permitting   ‘WEATHER PERMITTING‘ (WP) shall mean that any time when weather prevents the loading or discharging of the vessel shall not count as laytime. (2)days. had work been in progress.3.

for example because it is occupied by another ship. It does not matter whether the vessel was actually working or not. laytime does not count during periods of bad weather that interrupt loading or discharging nor (and this is the important factor) does laytime count when bad weather occurs during a working day even if.(3)Explanation of WWD   In cases of ‗weather working days‘. if time has started to run and bad weather occurs during a working day. It follows. therefore. no attempt would have been made to work. . that time will not count against Charterers as laytime. had the weather been fine. that even if a ship is not actually on the loading (or discharging) berth. ‗Weather working day‘ describes a type of working day.

it is also that part of the day when work is normally done in the port in question. Conversely. the bad weather would have to occur during the port working part of the day for it to be deducted from the laytime. If. the word ‗working‘ were not qualified in any way. therefore. . where the charterparty reads ‗weather working day of 24 consecutive hours‘ (which is now more normal).(4) Working day   A working day not only refers to a day when work normally take place. then bad weather occurring at any time (once laytime had started to run) would be deductible even if the Charterer had no intention of working during such a period.

that decision on a tanker has effective eroded the longheld and sacred distinction in the dry-cargo market between ‗weather working‘ and ‗weather permitting‘. They held that bad weather at the time was such as to prevent the loading of a vessel of the ‗VORRAS‘ type and as such. that vessel was a tanker and the judges of the English Court of Appeal has to determine the meaning of the term '72 running hours.(5) Days weather permitting   In cases of ‗days. In other words. Sundays and holidays included┈┈‘. was before the case of the ‗VORRAS‘ in that year. weather permitting‘ it was understood until 1982 that only working time actually interrupted by bad weather would fail to count as laytime. weather permitting. . where the vessel was kept from a loading berth for some days owing to bad weather. All this. laytime should not count. however.

The parties to the contract have agreed. except for any specified interruptions. . in effect.(6) Days of 24 consecutive hours   Where the term ‗days of 24 consecutive hours‘ is incorporated into a charterparty laytime provisions – and this is the term used in almost all modern dry-cargo charterparties – it in effect means that a laytime day will run continuously for 24 hours each day. It is of no consequence whether the ‗working day‘ of a port is of less than 24 hours. to ignore port ‗working days‘ and to define a ‗laytime day‘ as running continuously for 24 hours. bad weather or a strike. unless specifically interrupted by some charterparty factor such as a weekend or holiday.

However.(7) WWD without qualification   The term ‗weather working day‘ on its own without qualification is indeed affected by the number of hours actually worked in a port. Should bad weather occur outside working periods in the normal. even if the vessel was idle at the time. . if bad weather occurs in normal working time. laytime will not be affected. non-working and otherwise idle time. laytime will be interrupted and the degree of interruption has to be reached by apportioning working time in a port against a 24-hour day.

75day 1000/1900 18 hours .5 day 12 hours 1300/1900 0700/1000 0.0 day 0070/1900 0.Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Worked Worked Rain Rain Rain Worked Rain Worked Rain 0700/1900 1.0 day 0700/1900 1.25 day 06 hours 1000/1900 Day 7 Rain Worked 0700/1000 0.0 day 2200/2400 0001/2400 0.0 day 24 hours 24 hours 00 hours 00 hours 0700/1300 0.

apportionment of the degree of loss must be carried out. In that relatively simple example. for example. . in such a case.5 Breakdowns   It is reasonable that if a vessel‘s gear is being used and it breaks down. one crane out of four has broken down and. laytime would continue at a rate of 75% until the crane is repaired. laytime should not continue during the period of breakdown. It may be that.3.

interrupt laytime.e. shore breakdowns and it may be that the shipowners have knowingly or unwittingly assumed responsibility for these in their contract. . although that is not completely certain. therefore. Under American law it may be that the alternative view would be upheld. which means just that under English law. Charterers do not own or otherwise ‗control‘ the crane) such a breakdown will. Some charterparties exclude time lost due to stoppages of shore machinery ‗beyond the Charterers‘ control‘. however.Shore breakdaown    There are. in the shipowners‘ favour. Thus a shore crane breakdown that is judged to be ‗beyond Charterers‘ control‘ (i.

3 Despatch money 4.4 Averaging laytime .2 Demurrage 4.1 Damages for detention 4. CALCULATION     4.4.

if any.4. Consequently. The difference between demurrage and damages for detention is that demurrage is only be paid for an agreed number of days and damages for detention is to be paid for further delay takes place. most parties to a shipping contract avoid the problem by negotiating a daily level of ‗demurrage‘ for the time spent in excess of agreed laytime. . permitted laytime is exceeded. as a result. One method of reimbursement could be by claiming ‗damages for detention‘. however this could be a lengthy and costly legal exercise.1 Damages for detention     If Charterers fail to abide by the provisions of a contract and. shipowners are normally entitled to reimbursement for their loss.

. under such a provision. This is cumbersome to say the least.Gencon Form 76  It is rare to find a similar provision like Clause 7 in the Gencon form 76 limiting only to ten days on demurrage. Naturally. It is only to be expected that this provision is no longer to be found in the new Gencon form 94. the charterers will have to pay damages for detention beyond the ten days. if the vessel continues to be delayed.

weekends and holidays. demurrage should normally run continuously.g. with no interruptions until cargo work is completed unless the contract expressly provides otherwise – e. night and day. . always on demurrage‘ means what it says. it can usually be said that the much used shipping expression: ‗once on demurrage. although breakdowns on a vessel affecting discharge will interrupt demurrage time. Given these exceptions. ‗shifting time from anchorage to berth not to count as laytime or as time on demurrage‘. will not interfere with demurrage time. weekend and working period.4. Normally. laytime interruptions such as bad weather. however.2 Demurrage    Once laytime has been fully used.

4.3 Despatch money

It has already been stated despatch is not a feature of the tanker market. Within the dry cargo markets it can be agreed that if a vessel completes cargo operations within the available laytime, the Charterer will be rewarded by the payment of despatch money, which is normally set at half the daily rate of demurrage. It should be borne in mind, however, that a few Charterers negotiate that daily despatch is the same as daily demurrage, while, by contrast, for vessels that normally might expect a fast turn-round in port – e.g. ro-ro ships, car carriers or coasters – it is not at all unusual for the contract to specify ‗free despatch‘ – i.e. no despatch at all . However, no address commissions or brokerages are payable on despatch money. Where despatch is payable. It can be sub-divided as being payable on:

4.3.1 All time saved

‘DESPATCH ON ALL TIME SAVED‘ (ATS) shall mean that dispatch money shall be payable for the time from the completion of loading or discharging to the expiry of the laytime including periods excepted from the laytime. It is perhaps easier to understand despatch on ‗all time saved‘ by the use of an example.

Example

The ‗HERON‘ completes loading at 1200 hours on a Friday, her charterparty being ‗per weather working day of 24 consecutive hours, Saturdays, Sundays and Holidays excepted, even if used‘. Thus laytime would be suspended in normal circumstances from Friday 2400 hours through to Monday 0001 hours. At 1200 hours on Friday there are 3 days of laytime remaining and, since the term ‗all time saved‘ means exactly what it says, the calculator of laytime has to base figures on the hypothetical case that ‗if the vessel had not completed loading on the Friday at 1200 hours but had remained in port working cargo when would laytime have been fully used‘?

Despatch would thus be calculated in the following fashion: All time saved Laytime Friday 1200/2400 hours 12 hours Saturday 0000/2400 0 hours Sunday 0000/2400 0 hours Monday 0000/2400 24 hours Tuesday 0000/2400 24 hours Wednesday 0000/1200 12 hours 5 days 3 days  Allowing for the weekend that has been ‗saved‘ by the Charterers due to their finishing before the expiry of permitted laytime. are thus entitled to 5 days despatch. . under ‗all time saved‘ terms. they have in effect ‗saved‘ the Shipowner some 5 days and.

despite weekends or holidays or bad weather or any other factor occurring once the ship had departed.4. only the 3 remaining days of laytime would apply as despatch.3. Using the same example but on the basis of ‗working time‘ or ‗laytime saved‘. .2 Working time or laytime saved   ‘DESPATCH ON (ALL) WORKING TIME SAVED‘ (WTS) or ‗ON (ALL) LAYTIME SAVED‘ shall mean that dispatch money shall be payable for the time from the completion of loading or discharging to the expiry of the laytime excluding any periods excepted from the laytime.

is ‗working time saved‘ the same as ‗laytime saved‘? With laytime described as ‗a day of 24 consecutive hours‘ it will be the same. if one is involved in apportioning ‗working time ‗ in the manner shown under 5.  The question remains. The Charterer counters this by arguing that a ship is earning all the time she is at sea regardless of which day of the week it is so that getting the ship to sea that much quicker should reward the Charterer for every day without exception. You will readily see that ‗despatch on all time saved‘ favours the Charterer whilst ‗laytime saved‘ or ‗working time saved‘ is better for the shipowner. then despatch should be apportioned in the same manner.4 above. Otherwise. The shipowners naturally say that as laytime excepts certain periods like Sunday and holidays then despatch should be on the same basis. the ‗fairness‘ of one versus the other is a perpetual debate. however. .

Note  One final word about despatch.g. . It is. important for shipowners to take this into account when negotiating business and to reflect the ‗saved‘ time as a ‗despatch expense‘ in a voyage estimate. bulk sugar) are based on laytime far in excess of the time actually required to perform cargo operations. it should be borne in mind that some markets (e. therefore.

4.4.1 Normal (or ‗Non Reversible‘) Laytime 4.2 Reversible laytime 4.4.3 Average laytime .4 Laytime calculation 4.4.

4.4.1 Normal or Non-reversible Laytime   If nothing is specifically mentioned in the contract and where loading and discharging port laytime allowances are separately assessed. Thus laytime for loading port(s) and for discharging port(s) are assessed entirely separately and it is possible even to calculate. it can be taken that laytime is ‗normal‘ or ‗non-reversible‘. . negotiate and settle the load port(s) despatch/demurrage sums before even a vessel has reached her discharge port(s). claim.

Either the contract may openly be on ‗reversible‘ terms without actually stating so – e. . if they calculate it to be in their favour to do so. Thus any laytime saved from the loading ports can be carried forward and added to laytime allowed at the port(s) of discharge.2 Reversible laytime   ‘REVERSIBLE LAYTIME‘ shall mean an option given to the charterer to add together the time allowed for loading and discharging. Where allowance for both the loading and discharging ports are added and calculated together. 7 days. Where the option is exercised the effect is the same as a total time being specified to cover both operations.4. ‗all purposes‘ or ‗16 total days‘ – or there may be an express clause giving the Charterers the right or the option to apply reversible conditions if they so wish – in other words.4.g.

g. 2 days demurrage at load port would be cancelled out by 2 days despatch at discharge port.3 Average Laytime    ‘TO AVERAGE LAYTIME‘ shall mean that separate calculations are to be made for loading and discharging and that any time saved in one operation is to be set off against any excess time used in the other. with the final results for each being combined in order to assess what is finally due E.4. . even though the daily value of demurrage may be twice that of despatch. Arises where separate calculations are performed for the loading and for the discharging ports.4.

with the same basic facts.Difference  At first sight it may appear there is no difference between the application of reversible and average laytime. it is possible to reach three different results by applying each of the above alternatives. In fact. differences can arise and. .

24：00 =20小时  6月8日星期五 00：00 ------.24：00 =24小时  6月9日星期六 00：00 ------.24：00 =24小时 滞期  6月11日星期一 00：00 -----.04：00 下雨 =0小时  6月7日星期四 04：00 ------.答案： 装货港：  6月5日星期二 16：00 抵达  6月5日星期二 16：40 NOR  6月6日星期三 08：00 起算 —— 24：00 =16小时  6月7日星期四 00：00 ------.24：00 =24小时 滞期  6月12日星期二 00：00 -----.12：00 =12小时 装卸时间届满  6月9日星期六 12：00 ------.24：00 =12小时 滞期  6月10日星期天 00：00 -----.12：00 =12小时 滞期  装港滞期时间为3天 .

5天滞期  滞期费为1.5天=1.5天×3000=4500USD .卸货港  6月24日星期四16点抵达卸货港，并于16点40分递交 N/R，  6月25日星期五8点开始卸货 使用16小时  6月26日星期六20点卸货完毕 使用20小时  6月26日星期六20点至24点 4小时  6月27日星期天 除外  6月28日星期一0点至24点 24小时  6月29日星期二0点至8点 8小时 装卸时间届满  卸港速遣时间为1.5天  按平均计算3天—1.

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