Laytime Linkedin

Alphamar Ship Agent

LaytimeDemurrage & Despatch

LaytimeDemurrage & Despatch

April 2012

Laytime – Linkedin Profile

Alphamar Ship Agent

Objetivo desta AulaObjetivo desta Aula

• A conscientização dos profissionais que lidam com o comércio internacional sobre a tecnicidade do segmento de Afretamento de Navios, sua terminologia e a necessidade da percepção das partes com relação à utilização do Direito-Prevenção e do Direito-Custo, bem como da importância do conhecimento técnico para dar suporte aos setores de afretamento -´Pre & Post-Fixture´.

• A conscientização dos profissionais que lidam com o comércio internacional sobre a tecnicidade do segmento de Afretamento de Navios, sua terminologia e a necessidade da percepção das partes com relação à utilização do Direito-Prevenção e do Direito-Custo, bem como da importância do conhecimento técnico para dar suporte aos setores de afretamento -´Pre & Post-Fixture´.

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Responsibility and Expenses with Cargo Loading and Discharge

Cargo Loading and Discharge Conditions - Freight Conditions

Responsibility and Expenses with Cargo Loading and Discharge

Cargo Loading and Discharge Conditions - Freight Conditions

FIO & FIOST

Liner Terms (Liner IN / OUT)

FIO & FIOST

Liner Terms (Liner IN / OUT)

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Introduction To Laytime, Demurrage & Despatch

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Laytime – Introduction - DefinitionLaytime – Introduction - Definition

• Simply put, under a voyage charter Laytime is the agreed time for the charterer to carry out the cargo and associated operations (e.g. loading, discharging and waiting) in the ports of loading and discharging.

• Simply put, under a voyage charter Laytime is the agreed time for the charterer to carry out the cargo and associated operations (e.g. loading, discharging and waiting) in the ports of loading and discharging.

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Demurrage and Despatch - IntroductionDemurrage and Despatch - Introduction

• If the laytime is exceeded the charterer pays the owner liquidated damages, known as Demurrage. Defined under English law as “liquidated damages for delay beyond the stipulated time for loading and unloading”. In the dry cargo trades if the vessel does not use all the laytime, the owner pays the charterer Despatch. Without an agreement on demurrage payable the owner would have to claim “Damages for Detention”.

• If the laytime is exceeded the charterer pays the owner liquidated damages, known as Demurrage. Defined under English law as “liquidated damages for delay beyond the stipulated time for loading and unloading”. In the dry cargo trades if the vessel does not use all the laytime, the owner pays the charterer Despatch. Without an agreement on demurrage payable the owner would have to claim “Damages for Detention”.

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• Demurrage arises out of the loading and discharging operations should the time agreed be exceeded. Demurrage is paid by the charterer to the shipowner and is paid by the shippers and receivers to the charterer. In certain trades the “allowed time” is negotiated for each voyage and may be a reflection of the strength or weakness of the market.

• Demurrage arises out of the loading and discharging operations should the time agreed be exceeded. Demurrage is paid by the charterer to the shipowner and is paid by the shippers and receivers to the charterer. In certain trades the “allowed time” is negotiated for each voyage and may be a reflection of the strength or weakness of the market.

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• Comparing two fixtures with different laytime it can be appreciated that the owner is doing more to earn his freight when the laytime is longer but there is less chance of demurrage being incurred.

• 1. 7 days laytime lower freight – more risk of demurrage

• 2. 12 days laytime higher freight – less risk of demurrage

• Comparing two fixtures with different laytime it can be appreciated that the owner is doing more to earn his freight when the laytime is longer but there is less chance of demurrage being incurred.

• 1. 7 days laytime lower freight – more risk of demurrage

• 2. 12 days laytime higher freight – less risk of demurrage

Alphamar Ship Agent

Perspective – Global Vision – Integrated Logistic

Perspective – Global Vision – Integrated Logistic

The importance of a synergy between a Sales

Contract, the booking note and the Charter

Party – A macro vision for keeping the terms

“Back to back” (depending on each case, if it is

convenient to the party).

The importance of a synergy between a Sales

Contract, the booking note and the Charter

Party – A macro vision for keeping the terms

“Back to back” (depending on each case, if it is

convenient to the party).

Alphamar Ship Agent

Voyage Charter – Freight and Contractual Consideration


• In the adventure contemplated by a voyage charter , the ship is chartered under VCP and the charterer pays the shipowner freight. In return the vessel performs four basic operations summarized in the next slide, which comprise the voyage and form the contractual consideration, paraphrasing Lord Diplock:

• In the adventure contemplated by a voyage charter , the ship is chartered under VCP and the charterer pays the shipowner freight. In return the vessel performs four basic operations summarized in the next slide, which comprise the voyage and form the contractual consideration, paraphrasing Lord Diplock:

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Operation Costs included in the freight

1. Ballast to load port Distance steamed plus preparation of holds

2. Load cargo Agreed time, use of ship´s gear and port costs

3. Laden voyage Distance steamed plus care of cargo

4. Discharge cargo Agreed time plus use of ships cargo gear if fitted and port costs.

Alphamar Ship Agent

Stages of LaytimeStages of Laytime

• The interpretation of Laytime used under a voyage charter causes many disputes. In an effort to assist it, BIMCO, CMI, FONASBA and INTERCARGO issued the VOYLAYRULES 93 which in 28 rules covers the interpretation of initials, words and phrases commonly found in charter parties. In practice there are four stages to the Laytime and demurrage calculations (a copy of VOYLAYRules 93 was brought to you.

• The interpretation of Laytime used under a voyage charter causes many disputes. In an effort to assist it, BIMCO, CMI, FONASBA and INTERCARGO issued the VOYLAYRULES 93 which in 28 rules covers the interpretation of initials, words and phrases commonly found in charter parties. In practice there are four stages to the Laytime and demurrage calculations (a copy of VOYLAYRules 93 was brought to you.

Alphamar Ship Agent

Stages of LaytimeStages of Laytime

• 1. Commencement of Laytime• 2. Duration of available Laytime• 3. Exceptions to Laytime• 4. Calculation of Laytime used.

• 1. Commencement of Laytime• 2. Duration of available Laytime• 3. Exceptions to Laytime• 4. Calculation of Laytime used.

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Commencement of laytimeCommencement of laytime

• 1. Agreed Destination• 2. NOR – Notice of Readiness (Arrived

Ship)• 3. WIPON, WIBON, WIFPON, WCCON• 4. ´Port´ or ´Berth´ Charter Party• 5. Laydays (laying days) – Laycan • 6. Free Time or Grace Time

• 1. Agreed Destination• 2. NOR – Notice of Readiness (Arrived

Ship)• 3. WIPON, WIBON, WIFPON, WCCON• 4. ´Port´ or ´Berth´ Charter Party• 5. Laydays (laying days) – Laycan • 6. Free Time or Grace Time

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Terminais de Exportação e Importaçãode Granéis Sólidos – Santos

Terminais de Exportação e Importaçãode Granéis Sólidos – Santos

ADM. TERMINAL

ADM. TERMINAL

CORREDOR DE

EXPORTAÇÃO

ARM. 38CORREDOR DE

EXPORTAÇÃO

ARM. 38

CARGIL TERMINALCARGIL TERMINAL

CUTRALE TERMINALCUTRALE TERMINAL

TERMINAL 12-A - NOBLE

e 13 /14 - (DESCARGA DE

TRIGO – Cereal Sul)TERMINAL 12-A - NOBLE

e 13 /14 - (DESCARGA DE

TRIGO – Cereal Sul)

TERMAG e TGG

Fertilizantes,

Grãos e FareloTERMAG e TGG

Fertilizantes,

Grãos e Farelo

AÇÚCAR – Rumo e

Copersucar

AÇÚCAR – Rumo e

Copersucar

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NOR – In Fact Ready For LoadingNOR – In Fact Ready For Loading

Holds cleaning in order to be inspected and approved for loading by Ministry of Agriculture and/or cargo controllers

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Duration of Available LaytimeDuration of Available Laytime

• 1. Usually expressed in C/P as a length of time or by a rate of cargo handling:

• a) Period of Time: “7 weather working days of 24 hours”

• b) Rate: “6,000 mt p/d loading/4,000 m/t p/d disch”

2. SHINC, SHEX, FHINC, FHEX, UU, ATUTC, EIU

3. WWD and WP.

• 1. Usually expressed in C/P as a length of time or by a rate of cargo handling:

• a) Period of Time: “7 weather working days of 24 hours”

• b) Rate: “6,000 mt p/d loading/4,000 m/t p/d disch”

2. SHINC, SHEX, FHINC, FHEX, UU, ATUTC, EIU

3. WWD and WP.

Alphamar Ship Agent

Exceptions-Interruptions to LaytimeExceptions-Interruptions to Laytime

• Typical examples of Excepted Periods in dry cargo market are:

1. Shifting into first berth2. Bad weather3. Strikes4. SHEX

• Typical examples of Excepted Periods in dry cargo market are:

1. Shifting into first berth2. Bad weather3. Strikes4. SHEX

Alphamar Ship Agent

When does Laytime Stop?When does Laytime Stop?

Many dry cargo forms are silent on this point.

It is commonly taken as at completion ofcargo operations.

To avoid disputes with owners submitting claims fordetention, forms are being amended so that they

nowcover such eventualities with a clause that statesthat time will count if the vessel is delayed forcharterers purposes beyond a specified period, often3 hours, after cargo operations.

Many dry cargo forms are silent on this point.

It is commonly taken as at completion ofcargo operations.

To avoid disputes with owners submitting claims fordetention, forms are being amended so that they

nowcover such eventualities with a clause that statesthat time will count if the vessel is delayed forcharterers purposes beyond a specified period, often3 hours, after cargo operations.

Alphamar Ship Agent

Calculation of Laytime UsedHow is Demurrage Specified in Charter Parties


• Most common way to see demurrage quoted in a charter party:

• Daily Rate in USDollars (Negotiated reflecting the daily return that the owner expects to earn on the voyage)

• E.g., USD 15,000 per day and despatch half demurrage USD 7,500 per day

• “All time saved” and “All Working Time Saved” or “All Laytime Saved”

• Most common way to see demurrage quoted in a charter party:

• Daily Rate in USDollars (Negotiated reflecting the daily return that the owner expects to earn on the voyage)

• E.g., USD 15,000 per day and despatch half demurrage USD 7,500 per day

• “All time saved” and “All Working Time Saved” or “All Laytime Saved”

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• “Once On Demurrage Always On Demurrage” But: What suspends the running of Demurrage?

Three Basic Laytime Methods To Determine Whether Or Not Demurrage or Despatch Is

Due:Normal or Non-Reversible;Reversible Laytime;Averaging Laytime.

• “Once On Demurrage Always On Demurrage” But: What suspends the running of Demurrage?

Three Basic Laytime Methods To Determine Whether Or Not Demurrage or Despatch Is

Due:Normal or Non-Reversible;Reversible Laytime;Averaging Laytime.

Alphamar Ship Agent



• When Demurrage Ends?

• “once a vessel is on demurrage no exceptions will operate to prevent demurrage continuing to be payable unless the exceptions clause is clearly worded as to have that effect”

• When Demurrage Ends?

• “once a vessel is on demurrage no exceptions will operate to prevent demurrage continuing to be payable unless the exceptions clause is clearly worded as to have that effect”

Alphamar Ship Agent



• Documents To Calculate Laytime:

• Notice Of Readiness;• Statement Of Facts;• Booking Note (If any);• Charter Party

• Documents To Calculate Laytime:

• Notice Of Readiness;• Statement Of Facts;• Booking Note (If any);• Charter Party

Alphamar Ship Agent

Who May Be Liable for Demurrage?Who May Be Liable for Demurrage?

• Voyage Charter• Bill of Lading Holder• Party to Sale Contract• Party to Booking Note

• Voyage Charter• Bill of Lading Holder• Party to Sale Contract• Party to Booking Note

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DetentionDetention

• Unliquidated damages not agreed by the parties in advance (i.e., there has been no pre-estimate). Due to this nature (unliquidated) there will be no working definition of ´detention´ as such in a charterparty

• Payment For Detention

• Unliquidated damages not agreed by the parties in advance (i.e., there has been no pre-estimate). Due to this nature (unliquidated) there will be no working definition of ´detention´ as such in a charterparty

• Payment For Detention

Alphamar Ship Agent

The Golden Rule Is:(..Anyway)

The Golden Rule Is:(..Anyway)

Always read the Charter PartyAlways read the Charter Party

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Documents

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