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.
- 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
- Ship owners and managers
- Charterers including Importers, Exporters and Traders
- Shipbrokers
- Port and ship agents
- P&I personnel
- Logistics and shipping professionals
- Legal advisers, solicitors and barristers
- Government bodies and representatives