Course description
For those in the business of shipping, delays can be costly. It is common practice for shipowners 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.
'Laytime' and 'demurrage' are important terms in a charterparty and carry significant financial implications:
- 'laytime' refers to the time allowed in a voyage charter for cargo to be loaded on to or unloaded from a vessel; and
- 'demurrage' is incurred after the permitted laytime is spent.
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.
Upcoming start dates
Outcome / Qualification etc.
- Introduction to Laytime
- Introduction to Demurrage and Despatch
- Shipowners’ and charterers’ duties
- When does the clock start to tick?
- Safe ports and berths and anchorages
- Arrived ship, Notices of Readiness
- Statements of Facts
- Notes of Protest
- Charter party clauses
- Time bars
Training Course Content
Introduction to laytime and demurrage
- allocation of risk for delay between owners and charterers
- lack of regulatory interference
- Meaning of laytime
- Meaning of demurrage
- demurrage and dispatch
- BIMCO Laytime Definitions
- Types of laytime
- Averaged and reversible laytime
Laytime calculation
- How to interpret "Laytime Definitions 2013" and charterparty clauses
- The commencement of laytime
- How to assess the duration or laytime
- The cessation of laytime
- How to estimate the demurrage/despatch earned
- How to recognize fundamental differences between dry cargo and tanker laytime
- How to make a laytime calculation of multiple charters
Demurrage, dispatch, stoppage and termination of demurrage
- Axception clauses
- Why laytime exceptions do not automatically
- Apply to demurrage
- When does demurrage stop running?
- What remedy is there if demurrage does not apply?
- Axamples of cases of damages for detention.
Calculating Demurrage
- How to define laytime and demurrage
- How to perform demurrage calculation both for dry and wet charters
- Consequence of incorrect choice of wording in drafting charter party clauses regarding demurrage
- The importance of diversified interpretation of terms agreed
- The differentiation in claims resulting from such interpretation
- Analysing charter party clauses and documents required for calculations
Laytime, Demurrage and Despatch in Practice
- Wet/dry cargo laytime and demurrage time calculations
- Analysing charter party clauses and documents required for calculations
- Dispute resolution procedures and arbitration
- Understanding an arbitration award
- Laytime and demurrage in chartering practice
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