Laytime and Demurrage of Voyage Chartering of Tankers
INTRODUCTION
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.
OBJECTIVES
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
WHO SHOULD ATTEND ?
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
COURSE OUTLINE
Day 1
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
Day 2
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
Day 3
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.
Day 4
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
Day 5
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
IN-HOUSE TRAINING
LMA Training is capable of conducting this training programme exclusively for your delegates. Please e-mail us on admin@lmitac.com for further information and/or to receive a comprehensive proposal.
DOCUMENTATION
High-Quality material has been prepared by the LMAteam for distribution to delegates. In addition, a special note pad to facilitate note-taking will be provided.
CERTIFICATES
Accredited Certificate of completion will be issued to those who attend & successfully complete the programme.
SCHEDULE
Our Course timings commence at 09:00AM12:45PM and 01:00PM - 05:00PM.
REGISTRATION & PAYMENT
Please complete the registration form on the course page & return it to us indicating your preferred mode of payment. For Further Information, please get in touch with us.
CANCELLATION AND REFUND POLICY
Delegates have 14 days from the date of booking to cancel and receive a full refund or transfer to another date free of charge. If less than 14 days notice is given then we will be unable to refund or cancel the booking unless on medical grounds. For more details about the Cancellation and Refund policy, please visit www.lmitac.com/terms-and-conditions/
TRAVEL AND TRANSPORT
We are committed to picking up and dropping off the participants from the airport to the hotel and back.
CONTACT INFO
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+44 (0) 20 36 916 970
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