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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My saved default Read later Folders shared with you. The course also includes practical examples of demurrxge through a case study. Not only did the stevedores have to minimise broken spaces, but they had to ensure an even stowage. While delay can be expensive for a shipowner which suffers loss where demudrage 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.

Demurrage and Laytime – Who is Responsible for Delay? The NOR informs the charterer that the ship is ready to load or discharge.

Laytime and demurrage in wet cargo trade

Look up laytime in Wiktionary, the free dictionary. Owing to the nature of the discharge operation in the wet cargo trade, charterers may be concerned as to where Clause 8 will apply eg, how the court will interpret “the breakdown of machinery or equipment”. It is common practice for shipowners to charter vessels in return for freight.

Failure to do so could prove costly. Unsourced material may be challenged and removed. This page was last edited on 26 Septemberat The term demurrage is coming into use to describe time spent by a service person s accommodating delays that tend to prolong the interval that would normally be allocated for the service being delivered.


This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide.

Charterers also alleged that this caused delays in both loading and discharging port where damage to jumbo bags necessitated re-bagging of cargo. Follow Please login to follow content. The demurrage sometimes causes a loss to the seller as it increases cost of the total freight. Retrieved from ” https: By using this site, you agree to the Terms of Laytim and Privacy Policy. Register for a free subscription. The moment when laytime commences is determined by a Notice of Readiness or “NOR”which the master or agent of the ship must give to the port when the ship has arrived at the port of loading or discharge.

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.

Statement of facts, Time sheet Archived at the Wayback Machine. He has in any event to demurragw his ship from being made unseaworthy. By using this site, you agree to the Terms of Use and Privacy Policy. However, the actual regime of container demurrage is still to be determined precisely. Bookmark this page Bookmark page Print page Share page.

Views Read Edit View history. There were 4 main issues in the arbitration: You may also be interested in Because the supply of a shipping container to a merchant has a similar nature to the contract of a supply of a vessel to a voyage charter, the industry refers to lagtime container usage beyond the time allowed as Container Demurrage.

Demurrage – Wikipedia

This section does not cite any sources. Ship chartering Water transport stubs Business term stubs. It is imperative to ensure that, before executing the contract of carriage, both parties are demudrage 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 demurraeg.


Contact IT support on: Furthermore, charterers contended that delays at the discharge port were caused by re-bagging the damaged cargo. Ighu further opined that: Justice Iguh stated that:.

Further, where required, a notice of readiness must be issued to the charterer of the vessel, notifying him or her that the vessel is ready. In any event, and even if the cargo had been stowed properly and the stevedores had been competent, the vessel would have been delayed because of non-availability of cargo.

September PDF Version. Best practices would allow for this potential ‘liquidated damage’ in contingency allocation and planning in order to mitigate risks and minimize cost overruns. Haulers will usually charge an hourly rate for each hour after the allowed time.

Laytime and Demurrage | Ship Law Log

This is possible where: The charterparty contract determines the precise meaning of “arrival”. The case addresses important issues of general application with regards to the implications of delays during a charter and the contractual obligations between the main parties in a charter and their sub-contractors.

Whether owners or charterers were responsible for the bad stowage at the loading port which led to delays at both loading and discharge port.