In commercial shipping, laytime is the amount of time allowed[1] in a voyage charter for the loading and unloading of cargo.[2][3]
Under a voyage charter or time charter, the shipowner is responsible for operating the vessel, and the master and crew are the employees of the shipowner, not the charterer. However, once the vessel has "arrived" at a port the charterer then assumes responsibility for the loading and unloading of cargo and has a period of laytime in which to carry that out. The actual loading may be performed by a third-party stevedore.
The moment that 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 charterparty contract determines the precise meaning of "arrival". Usually, "arrival" is when the ship has arrived at the port and is ready in all respects to load or discharge; but it may be, say, when the ship has passed buoy #2 in the approach channel, or once the vessel has pass through lock gates.[4]
If the charterer does not comply with the NOR, the carrier may cancel the contract and seek damages.[5] If the charterer's delay means that laytime is exceeded, a predetermined penalty (i.e. liquidated damages) called "demurrage" is incurred.[6][7] If the whole period of laytime is not needed, a refund called "despatch" may be payable by the shipowner to the charterer. Despatch is normally paid at 50% of the demurrage rate, but that depends on the terms of the charterparty. The ship may thus be able to leave port early. Despatch does not normally apply to tanker charters.[citation needed]
"Laytime" should not be confused with "Laydays" because "Laydays" is the period within which the Shipowner has to make the vessel "ready" to the Charterer at the place and time agreed in the charter party. "Cancelling Date" is the last day of "Laydays" and acts as a deadline to tender "Notice of Readiness". A ship (vessel) failing to become an "Arrived Ship" by tendering a valid Notice of Readiness, bears the risk of being refused/cancelled by Charterers as per Charter-Party provisions.
ReferencesEdit
^may be measured in days (or portions thereof), hours, or even tides.
^Maritime knowhow website: Gencon, clause 6 2011-04-04 at the Wayback Machine
^Maritime knowhow website: Notice of Readiness 2011-07-14 at the Wayback Machine
^Maritime knowhow website: Gencon, clause 9 2011-04-04 at the Wayback Machine
Look up laytime in Wiktionary, the free dictionary.
Further readingEdit
Todd, Paul (1988) Contracts for the carriage of Goods by Sea, page 88, BSP Professional Books, Oxford, U.K ISBN
August 25, 2023
laytime, commercial, shipping, laytime, amount, time, allowed, voyage, charter, loading, unloading, cargo, under, voyage, charter, time, charter, shipowner, responsible, operating, vessel, master, crew, employees, shipowner, charterer, however, once, vessel, a. In commercial shipping laytime is the amount of time allowed 1 in a voyage charter for the loading and unloading of cargo 2 3 Under a voyage charter or time charter the shipowner is responsible for operating the vessel and the master and crew are the employees of the shipowner not the charterer However once the vessel has arrived at a port the charterer then assumes responsibility for the loading and unloading of cargo and has a period of laytime in which to carry that out The actual loading may be performed by a third party stevedore The moment that 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 charterparty contract determines the precise meaning of arrival Usually arrival is when the ship has arrived at the port and is ready in all respects to load or discharge but it may be say when the ship has passed buoy 2 in the approach channel or once the vessel has pass through lock gates 4 If the charterer does not comply with the NOR the carrier may cancel the contract and seek damages 5 If the charterer s delay means that laytime is exceeded a predetermined penalty i e liquidated damages called demurrage is incurred 6 7 If the whole period of laytime is not needed a refund called despatch may be payable by the shipowner to the charterer Despatch is normally paid at 50 of the demurrage rate but that depends on the terms of the charterparty The ship may thus be able to leave port early Despatch does not normally apply to tanker charters citation needed Laytime should not be confused with Laydays because Laydays is the period within which the Shipowner has to make the vessel ready to the Charterer at the place and time agreed in the charter party Cancelling Date is the last day of Laydays and acts as a deadline to tender Notice of Readiness A ship vessel failing to become an Arrived Ship by tendering a valid Notice of Readiness bears the risk of being refused cancelled by Charterers as per Charter Party provisions References Edit may be measured in days or portions thereof hours or even tides Maritime knowhow website Gencon clause 6 Archived 2011 04 04 at the Wayback Machine Maritime knowhow website Notice of Readiness Archived 2011 07 14 at the Wayback Machine Maritime knowhow website Gencon clause 9 Archived 2011 04 04 at the Wayback Machine The Mihalis Angelos The Suisse Atlantique Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha LtdExternal links Edit Look up laytime in Wiktionary the free dictionary Further reading EditTodd Paul 1988 Contracts for the carriage of Goods by Sea page 88 BSP Professional Books Oxford U K ISBN Retrieved from https en wikipedia org w index php title Laytime amp oldid 1158649588, wikipedia, wiki, book, books, library,
