So far as the global shipping practice is concerned, laytime & demurrage is one of the most complicated topics for both ship-owners and charterers under. Develop comprehensive knowledge of the essential legal and practical aspects of tanker and dry cargo laytime and demurrage. The course focuses on the fundamental principles which underpin laytime and demurrage and how these principles can be changed quite dramatically by the.
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Please contact customerservices lexology. For those in the business of shipping, delays can be costly. It is common practice for demurage to charter vessels in return for freight. When calculating freight, shipowners take into consideration the period of the charter.
Therefore, where a shipowner has calculated freight based on the time for which the vessel will be in the charterer’s possession and the charterer is then delayed, the owner will lose profit. However, the law provides the shipowner with a possible remedy.
Both terms involve the time allocated for a vessel to be loaded or unloaded and the penalty incurred where the vessel has been unjustly delayed.
In order to protect the shipowner from suffering loss, charterparties usually provide for compensation if the charterer is delayed. When does laytime commence? Before a vessel is ready to commence loading or discharging, demurrgae must be at the destination as specified in the charterparty and ready to take on or discharge cargo.
Demurrage and Laytime – Who is Responsible for Delay?
Further, where required, demufrage notice of readiness must be issued to the charterer of the vessel, notifying him or her that the vessel is ready. When these conditions have been fulfilled, the vessel is classed as an ‘arrived ship’. Justice Iguh stated that:. The appellant’s vessel had been diverted from Lagos to Tema, Ghana, after congestion at the port in Lagos had prevented it from being able to discharge cargo.
Ighu further opined that:. As at that stage, the vessel… was already in demurrage… The maxim is firmly settled that once on demurrage, always on demurrage until the vessel is fully discharged unless of course, the owners removed it for their convenience.
There is no suggestion in the present case that the Appellants at any stage removed their vessel for their own purpose or convenience. Do all delays count as laytime?
The tanker voyage charterparty Asbatankvoy provides for instances where a charterer may avoid paying demurrage or pay at a significantly demurfage rate. This is possible where:.
Laytime and Demurrage | Ship Law Log
Owing to the nature of the discharge operation in the wet cargo trade, charterers demurragd be concerned as to where Clause 8 will apply eg, how the court will interpret “the breakdown of machinery or equipment”. Although there appear to be no Nigerian deemurrage which interpret this principle, a number of English cases have provided appropriate guidance.
While delay can be expensive for a shipowner which suffers loss where a charterer delays the loading and discharge operation, a charterer should not have to pay demurrage for such delay where it can be proven that it was not at fault. It is imperative to ensure that, before executing the contract of carriage, both parties are clear on the laytime and, most importantly, on clauses which stipulate where a charterer is relieved of its obligation to pay demurrage or where the rate payable is reduced by half.
Failure to do so could prove costly. This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide.
Laytime and demurrage in wet cargo trade
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Demurrage – Wikipedia
Register now for your free, tailored, daily legal newsfeed service. Nigeria February 7 Introduction For those in the business of shipping, delays can be costly. Justice Iguh stated that: Ighu further opined that: This is possible where: In this case the rate of demurrage will be halved Clause 8.
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