Definite
Calculable
Indefinite
Definite Laytime: The simplest of the categories, specifies how many days/hours are allowed, whether for loading or for discharging, or for both activities, the latter sometimes being known as for „all purposes‟. Terms might be : „Cargo to be loaded within 5 weather working days of 24 consecutive hours‟, or „7 working days of 24 consecutive hours, weather permitting, for all purposes‟.
Calculable Laytime : In these cases periods of definite laytime as described above can only be established once a calculation has first been carried out, based on factors contained in the contract and in the statement of facts form. Calculable laytime can be sub -divided into two further sub-sections :-
Tonnage Calculations: Tonnage calculations are the most common types of calculable laytime. A contract will state that a vessel is to load and/or
discharge at a set rate of tons/tones per day/hour. Thus, for a ship load ing 40,000 metric tones of cargo, minimum/maximum, at a rate of 10,000 tonnes daily, there will be 4 days of laytime available to her charterers.
However, it might be that the ship‟s Master has a margin within which to load – eg 40,000 tonnes/5% more or less. Thus, if the ship eventually loaded 41,258 tonnes of cargo, available laytime can be assessed as follows :
41,258 tonnes / 10,000 tonnes daily = 4,1258 days.
4, 1258 days equates to 4 days 3 hours 1 minute in the following manner :-
4.1258 D H M
- 4,0000 4 00 000
0.1258
- 0.1250 - 03 00
0.0008
0.0007 - 00 01
4 03 01
A table giving the decimal parts of a day to help in calculations of this kind will be found in Appendix 6 : 3.
Hatch Calculations: Are more complicated than Tonnage Calcu lations, but occasionally need to be performed. Nonetheless, there are well -established procedures to assist. Let us assume that general cargo vessel „HERON‟ is discharging bagged wheat flour on the basis of: -
i) A discharge rate of 175 tonnes per hatch daily .
ii) Total cargo of 7,000 tonnes,
iii) 1,575 tonnes cargo in the largest cargo compartment, and
iv) Vessel has five (5) hatches.
„Per Hatch daily‟
T he ves se l is to b e d isch arg ed at 175 ton nes per h atch da ily.
T hus 5 (hatches) x 1 75 tonn es = 875 ton nes da ily,
T hus 7,000 ton nes c arg o / 875 = 8 da ys permitted la yt ime.
„Per Workable Hatch daily‟ W here the terms „workable‟, „working‟ or
„available hatch daily‟ are introduced, complications set in. To be
„workable‟ under English Law, a hatch must be capable of being
„worked‟ – that is to say, there must be space beneath that hatch at the loa ding port, an d th ere must b e carg o under t he h atch at disc harg e port. Taking the above example of the „HERON‟, as each hatch is emptied, the d isc ha rg e rate wou ld re du ce b y mult ip les of 17 5 tonn es daily, unt il a ll ho lds become empt y one b y one. T h is is, h o we ver, a cumbersome an d s ometimes comp licat ed metho d of calcu lat ion, and Eng lish la w pro ced u re la ys do wn a s imp ler alter native wh ich is f ollo wed in s uch ca ses. F irst it is nece ssar y to establish the „largest‟ unit of cargo in the vessel. Reference to the „stowage plan‟ shows that 1,575 tonnes co ntained in No.3 ho ld an d tween deck bene ath No.3 hatch constitutes the „largest‟ unit. Thus, 1,575 tonnes / 175 daily = 9 days la yt ime o ver all.
Ho we ver, wh ere the larg est unit of carg o is served b y t wo or more hatches, th e un it to nnag e must be su b -divid ed. Ass uming two hatc hes ser ved No.3 ho ld an d tween deck , f or example, 1,5 75 ton nes wou ld f irst be d ivid ed b y 2 bef ore ap p lying the f actor of 175 to nnes d aily. In that
case, the larg est in divis ib le c arg o unit wou ld b ecome th e 1 500 ton nes conta ine d in No.2 ho ld and t we end eck , and th e la yt ime durat ion calc ulation wou ld th en be: -
1,500 ton nes / 175 d aily – 8.771428 days laytime.
(8.5714 28 da ys ca n be con vert e d to da ys, hours and min ute s by us ing the table in App end ix 6 : 3).
Indefinite L a ytime : Occasiona lly, an o wner or op erator will ag ree f or his ship to be loaded or discharged as per „custom of the port (COP);
„customary despatch‟ (CD)‟; „customary quick d espatch‟ (CQD), or „fast as can‟ (FAC) terms.
T he common f actor with thes e terms is that all pr o vide a shipper or receiver with an „indefinite‟ period during which to perform cargo operations, although they must act „reasonably‟. It is „unreasonable‟, for example, for cargo not to be available upon a vessel‟s arrival within ag reed la yda ys, and in suc h a ca se, the o wner or operat or of the ship would normally become entitled to reimbursement by „damages for detention‟. But risk of bad weather, port conge stion, and suchlike are all f or the shipo wner/op erator to bear.
„Fast as can‟ applies normally to self -loading/discharging vessels (see Less on One) a nd stip ulates that the carg o will b e lo aded a nd/or discharged „as fast as the vessel can‟, often ad ding a further stipulation that charterers or shippers/receivers must be able to „deliver‟ or „take -away‟ cargo at a particular daily tonnage rate.
Dea dfreight : W here only part of a cont racted carg o ca n b e sup plie d and, consequently, where „deadfreight‟ be comes payable to a shipo wner/op erator as a re su lt, und er E ng lis h la w la ytime is nonet he les s app lied on ly o n the p ortion of carg o actua lly lo ade d. T hus : -
i) Contracte d carg o: - 10,000 to nnes m in/max.
ii) Load ing rate : - 2,000 ton nes d aily
iii) Carg o supp lied : - 7,000 ton nes
iv) Deadf reig ht : - 3,000 ton nes (10, 00 0 7,000)
v) La ytime: 7,000 – 2,000 = 3.5 days.
Ho we ver, a ls o un der Eng lish La w, a sh ip o wner/o perator claiming deadf reig ht must ret urn to the charter er an y b enef it rece ived . T hus t wo la yt ime c alcu l ations shou ld be carr ied o ut, one ba sed on ac tual carg o loa ded/d isc harg ed a nd the other on the hypoth etic al carg o that shou ld ha ve be en load ed/ disc harg ed. An y d if f erence in the o wn ers f avour shou ld b e cred ited t o the charterer in ret urn f or payment of dead f reig ht.
Americ an la w is more straig htf orwar d in case s of deadf reig ht, calc ulating deadf reig ht on wh at h as bee n load ed, plu s tonn ag e eq uiva lent to the de adf reig ht paid b y c h arterers.
Commen cement : For laytime to have„commenced‟, a vessel must have „arrived‟ at the place where cargo operations are to be performed (1) „arrival‟: must be physically able to undergo cargo operations (2)
„readiness‟; and have dealt with (3) „contractual commitments.
Ar ri val : L a ytime is a s ubject wh ich le nds itse lf to disput e, a nd the definition of whether or not a ship has „arrived‟ in a laytime sense may sometimes be e xtre mely leg ally c omplic ated, there be ing much E ng lish law on the subject. Simply, to have „arrived‟ at a port, a vessel must ha ve rea ched eith er the lo ad ing /disc harg ing place or, sho uld that plac e be bus y, n ormal wa iting pla ce. Furthermore, a ship‟s Master or agent must ha ve ten dere d Notic e of Re ad iness, in acc ordan c e with t he contract requirements (eg „within office hours, Mondays to Fridays‟).
Notice of Re ad in es s can b e g iven or ally, b ut us ua lly a written f orm is used, an e xample of whic h ca n be found in Appendix 6:4. It is an important function of a port agent to assist a ship‟s Master in tendering notice of a ship‟s arrival, and also to ensure that shippers/receivers officially „accept‟ the vessel‟s notice of readiness, accomplished usually be signing and timing acceptance on the notice from, although shippers/receivers or charterers‟
nominated port agents, will „accept subject to charterparty terms and cond itions‟.
Rea dines s : A s hip must be ph ys ica lly capa ble of perf orming carg o -operat ions – eg at a loading port, holds must be cleaned and prepared f or receiving carg o and, if the contra ct so s pec if ies, ho lds must be ins pected a nd dec lared su itab le b y a n appro pr iate a utho rit y bef ore notic e of readin ess will be ac cepte d.
Contra ctual Commitments : Co ntracts u sua lly state that b ef ore la ytime commences, a vessel must, (a) have been „entered‟ at the local custom house and (b) be in „free pratique‟ (given the go ahead to proceed by the port hea lth a utho rit y).
Con gestio n: In case cargo berths are occupied upon a vessel‟s arrival, contracts us ua lly s p ecif y that n otic es of read iness c an be te n dered f rom a „normal waiting place‟, „whether in berth, or not‟ (W IBON); „whethe r in free pratique, or not‟ (W IFPON); and „whether custom‟s cleared or not‟
(W CCON). It is nor mal th at time sp ent in e ventua l sh if ting from the wa iting p lace to th e first carg o berth will not count as la yt ime.
Turn Time: T h is occ urs at certa in p orts where ships wait their „turn‟ to loa d/discharg e. W hen wait ing turn, la yt ime will not usu ally c ount.
Sometimes „turn time‟ is limited – say to „48‟ hours‟ – laytime commencing once t h is p eriod h as e la pse d, or ear lier if carg o operat ions beg in wit hin th at per iod. W here no „turn time‟ limit is specified, the risk of exces sive d ela y is that f or a sh ipo wn er. W hen mark ets are in the ir favour, some charterers attempt to impose „turn time‟ conditions into a charterpart y, e ve n th oug h there is n o suc h custom f or same at th e ports in volved – eg ‟36 hours turn time both ends‟.
Commen cement : O nce a vess el has arrive d at a port, c omplied with all f ormalities a nd co ntractua l commitme nts, and tender ed notice of read iness, la yt ime will commen ce in acc ordanc e with the co n tract ter ms – eg „at 0700 hours next working day‟, or ‟12 hours following tendering and accepting notice of readiness‟.It is important to remember that the commencement of time cou nting an d the commenceme nt of actual
loa ding or d isc harg ing ca n, un der cer tain circ um stanc es, be q u ite dif f erent. T ak e, f or examp le, a charter party with 3 6 hours turn time
„even if used‟ also Sundays and Holidays excepted „even if used‟ and Notice of Re ad ine ss to be g iven dur ing n ormal off ice ho urs. S uch a sh ip cou ld arr ive at, sa y, 6 p.m. on a Frida y, work the e ntir e we ek end an d time wou ld n ot commence to count unt il 36 hours af ter 8 a.m. Mon da y.
Such a sh ip wo uld ha ve been work ing f or over f our da ys bef ore time even commen ces to count. V ital, ther ef ore, to ensure a lso tha t Notice of Read i ness is h and e d in at the e arliest p ermiss ib le mome nt. Ne ver th ink that as work has a lre ad y started a n otic e of readiness is n ot neede d.
Self Ass essm ent Question s
1. W hat are the se ve n stag es to be tak en into c ons id eration when calc ulating la ytime ?
2. W hat is the dif f erence bet ween a State ment of Facts and a T ime Sheet ?
3. What is „Free Pratique‟?
4. W hat is the eff ect on la ytime c alcu lations when d eadf reig ht is in volved?
Interruption s : Once laytime has commenced, unless a vessel‟s cargo -hand ling eq uipme nt b reak s do wn, it will continue unh in dere d unt il th e completio n of carg o oper atio ns or u ntil la yt ime e xp ires or demurrag e commences. Ne verth ele ss, co ntracts f requently inc lud e e xpre ss claus es interru pting la yt ime in the e ve nt of W eek ends and ho lida ys , Sh if ting bet we en berth s , Strik es , Bad W eather and Br eak do wns
Weeken ds and holi da ys: If these are t o int errupt la ytime, t he co ntract can be said to be on „SHEX‟ terms (Sundays and Holidays Excepted), or
on FHEX terms (Frid ays and Ho lida ys E xcepted) if in Mos lem co untries, during weekends, „unless used‟. Alternatively, a contract may emphasise that „time used during weekends is not to count, even if used‟. Occassionally, agreement is reached that „actual time used during weekends is to count as laytime‟, or even „half time actually used to count‟, It may also be agreed that the period between notice of
interru ptio ns of la yt ime at one time c ou ld be divid ed into t wo types – running hours, weather permitting, Sundays and holidays included ….‟, where the ves se l wa s k ept f rom a load in g berth f or some da ys o wing to
bad we ather. T hey held that bad we ath er at the time was such as to
apport ion ing work ing time in a p or t ag ain st a 24 hour d a y.
T hus, and assuming port labour work s a 12 hour da y, f rom 0700 hours unt il 190 0 hou rs : -
Laytime u sed
Da y 1 : work ed 0 700 /1900 = 1.0 da y = 24 hours Da y 2 : work ed 0 700 /1900
rain 2200/240 0 = 1.0 da y = 24 hours
Da y 3 : rain 0001 /2400 = 0.0. da y = 0 hours
Da y 4 : rain 0700 /1900 = 0.0 da y = 0 hours
Da y 5 : work ed 0 700 / 1300
rain 1300/190 0 = 0.5 da y = 12 hours
Da y 6 : work ed 0 700 / 1000
rain 1000 / 19 00 = 0.25 da y = 6 hours
Da y 7 : rain 0700 / 1000
work ed 10 00 / 190 0 = 0.75 da y = 18 hours
Since the case of the „VORRAS‟, the term „working days, whether permitting‟ should be taken to be the same as for the above example, and the terms „weather working days of 24 hours‟ and „working days of 24 hours, weather permitting‟ (i.e. without the all -important „conecutive‟) must also b e treated in the same ma nner .
Brea kdow ns : It is reasonable that if a vessel‟s gear is being used and it break s do wn, la y t ime shou ld n ot contin ue dur ing the period of break do wn. It may be that, f or example, one crane o ut o f f our has brok en do wn and, in such a case, a ppor tionment of the deg ree of loss
must be carried o ut. In that relative ly simp le e xamp le, la ytime wou ld conti nue at a rate of 75% until the cr ane is repair ed.
T here are, ho we ver, shore bre ak do wn s, and it ma y be th at the shipo wners ha ve k no wing ly or un witt in g ly assume d res po nsibilit y f or these in th eir c ontra ct. Ref er, f or examp le, to c la use 4, lin e 33, of the A MW ELSH charterparty and there the words „beyond Charterers‟
control‟ effectively mean just that under English law. Thus a shore crane breakdown that is judged to be „beyond charterers‟ control‟ (i.e.
Charterers do not own or otherwise „control‟ the crane) s uch a break-do wn will, theref ore, interrupt la yt ime. Under Amer ica n la w it may be that the alternative view would be upheld, in shipowners‟ favour, altho ug h that is n ot comp lete ly certa in. T he A MW ELSH is n ot a lo ne example of the inclusion of the words „bey ond Charterers‟ control‟, there be ing se vera l wide ly -us ed f orms conta in ing this e xpress ion to similar ef f ect.
Cess ation: Gener ally, dr y -carg o la ytime ceases s imu ltan eous ly with the terminat ion of carg o -operatio ns – i.e. as loading is completed.
Occasio na ll y, h o we v er, spec ia l carg o wo rk such as trimming , la sh ing or secur ing will b e n e cessar y, th e time f or wh ich wo uld rea sonab ly be adde d to la yt ime. Most charterp artie s ar e sile nt a lso o n the eff ect on la yt ime of time tak en f or read ing draf ts, perh aps an esse n tial activit y bef ore bill of la ding we ig ht can be ass essed. Usu ally, Cha rterers will recog nize this act ivit y as esse ntial a nd inc lud e same a s la yt ime, espec ia lly since it n ormally in volves a relat ive ly sh ort time. Ever y n o w and the n, ho we ver, a draf t surve y is ser ious ly imp ede d b y, f or example, bad weather, a nd t here mig ht we ll be a dis pute b et we en t he part ies unless th e co ntract spec if ies wheth er time de voted to asc ertain ing a vessel‟s draft should count as laytime or not.
Calculatio n : T his can usef ully be s ub-d ivided into the f ollo wing categ ories: -