Dispute over laytime in C/P

Group 5
 Main kinds of disputes

Disputes on time mark for (un)loading

Disputes on NOR
Disputes on waiting time of ship
Disputes on dispatch and demurrage
Disputes on time mark for (un)loading
 Basic of theory

Commencement of laytime depends on when NOR is

tendered and accepted, usually starts after a certain
number of hours or days
Disputes on the time mark and the validity of NOR is
one of the most popular ones
Case study
 Disputes

Shipowner Charterer
NOR tendered on Oct 5 NOR tendered on Oct 5
was valid was invalid
Regular contact with 170km – not the nearest
charterer point
Laytime started from Oct Laytime started form the
7 time on Oct 9
 Court’s verdict

NOR tendered on Oct 5 was invalid because NOR

cannot be validly served before the vessel is seen
as an “arrived ship”
An “arrived ship” must have reached the place
within the port where NOR may be served
South West Pass is not such a place
=> NOR was invalid
Disputes on dispatch and demurrage
 Basis of theory

dispatch
Carrier Charterer
rapid loading/ discharging
 Case study

Inpex Vedan
(Sikka Port, India) (Go Gia, Vung Tau)
- Loading/ unloading speed per day: 3,000MT/
WWDSHEXEU.
- Demurrage rate: 6,000 USD/ day.
- Dispatch rate: 3,000 USD/ day.
- Lay time stipulated in charter party: 240 hours (10 days).
 Disputes

“ Sunday” after discharging completion – counted

into dispatch or not?
 dispatch for all time saved.
 dispatch for all working time saved.
 Remarks

In the contract, it should be clarified:

Dispatch on:
 dispatch for all time saved.
 dispatch for all working time saved.
 Demurrage

demurrage money
Charterer Carrier
late loading/ discharging
 Case Study

Philadelphia Hsiang
- Loading/ unloading speed per day: 1500 tons/
WWDSHEXEU.
- Dispatch/ demurrage rate: 3750 USD/ 7500 USD per
day.
- drying were excluded from lay time.

a
Laytime started Oct 26th Dec 6th completed

Oct 4th Laytime finished Discharging started Dec10th

Drying (16 days)

 Dispute

After laytime, whether drying is excluded from

demurrage or not?

=> “ Once on demurrage, always on

demurrage”
 Lessons

• The more terms and conditions are stipulated, the

more two parties can avoid disputes
Thank you for your listening