Wednesday 6 October 2010
Conclusion
To the Charterers' satisfaction, the Owners have to accept the Charterers' point and acknowledge the despatch due to Charterers, as the shipowners have no chance to prove that any hold (at least one) was prepared for inspection and therefore ready for loading.
Tuesday 21 September 2010
Laytime calculation for load : Charterers' point of view
The Charterers have a different point of view from the Shipowner, and present their calculation and supporting comments as follows:
The Charterers appeal to the layday/cancelling clause of the Charter party where it is stated that notice of readiness to be always accompanied by original pass(es) of the surveyor. Therefore the vessel was not loadready when tendering Notice of Readiness, which is accepted only on Saturday 17:15 after approval of holds by the Ministry of agriculture surveyor. Therefore laytime not to count neither before Saturday 17:15 nor after (due to SSHEX clause of the charter party).
Therefore the despatch due to Charterers should amount to 17591.76USD, which the Charterers ask the Owners to comment and/or confirm.
| Date | From | Till | Comments | Coefficient | Time used |
|---|---|---|---|---|---|
| 06 July, Tue | 08:00 | 24:00 | 0.0 | 00:00 | |
| 07 July, Wed | 00:00 | 24:00 | 0.0 | 00:00 | |
| 08 July, Thu | 00:00 | 24:00 | 0.0 | 00:00 | |
| 09 July, Fri | 00:00 | 24:00 | 0.0 | 00:00 | |
| 10 July, Sat | 00:00 | 24:00 | 0.0 | 00:00 | |
| 11 July, Sun | 00:00 | 10:25 | 0.0 | 00:00 |
| Total time used: | 00:00:00 | [days:hours:minutes] |
| Total saved: | 5.0262 | days |
| Despatch due to Charterers | 17591.76 | USD |
The Charterers appeal to the layday/cancelling clause of the Charter party where it is stated that notice of readiness to be always accompanied by original pass(es) of the surveyor. Therefore the vessel was not loadready when tendering Notice of Readiness, which is accepted only on Saturday 17:15 after approval of holds by the Ministry of agriculture surveyor. Therefore laytime not to count neither before Saturday 17:15 nor after (due to SSHEX clause of the charter party).
Therefore the despatch due to Charterers should amount to 17591.76USD, which the Charterers ask the Owners to comment and/or confirm.
Friday 17 September 2010
Laytime calculation for load : Owners' vision
We will firstly present the version of laytime calculation proposed by the Shipowner and then provide supporting comments to Shipowner's point of view.
SHEX 1200 SAT - 0800 MON
The shipowner argues that the vessel tendered Notice of Readiness on the 5th of July during office hours, therefore, according to the Charter party (see extracts from the Charter party previously discussed), laytime to start counting next day, on the 6th of July, at 08:00 and continues till 10:55 next day, the 7th of July, as the berth was occupied (see the Statement of Facts, previously presented).
Laytime stops counting at 10:55 as the anchor was up for proceeding to anchorage #2 for inspection. The laytime resumes counting from 12:15 till 13:15 as the vessel is idle waiting for preloading inspection. Unfortunately, the holds are reproved and the vessel fails to pass inspection and therefore has to proceed to anchorage #4 for additional cleaning. The time not to count till the next inspection. The vessel is cleaning holds till the end of the day on Thursday, and also on Friday and Saturday, till 14:00, when she is finally ready to proceed for new inspection. However, the laytime stops counting at 12:00 on Saturday (SSHEX 12:00 clause of the Charter party) and not to resume till 08:00 Monday. However, loading is completed at 10:55 on Sunday. Time not to count. Time for fumigation not to count as well.
Therefore the Shipowners consider despatch of 13520.58USD due to Charterers, and request the Charterers to provide comments and/or confirmation onto the Owners' calculation.
| Cargo quantity: | 30157.296 | metric tons |
| Load rate | 6000 | metric tons per day |
| Time allowed | 05:00:37 | [days:hours:minutes] |
| Rate of Demurrage | 7000 | USD per day pro rata |
| Rate of Despatch | 3500 | USD per day pro rata |
| NOR tendered: | 05 July,2010; 08:15 | Monday |
| Laytime started: | 06 July,2010; 08:00 | Tuesday |
SHEX 1200 SAT - 0800 MON
| Date | From | Till | Comments | Coefficient | Time used |
|---|---|---|---|---|---|
| July 06, Tue | 08:00 | 24:00 | 1.0 | 16:00 | |
| July 07, Wed | 00:00 | 10:55 | 1.0 | 10:55 | |
| 12:15 | 13:15 | 1.0 | 01:00 | ||
| 08 July, Thu | 00:00 | 24:00 | 0.0 | 00:00 | |
| 09 July, Fri | 00:00 | 24:00 | 0.0 | 00:00 | |
| 10 July, Sat | 00:00 | 24:00 | 0.0 | 00:00 | |
| 11 July, Sun | 00:00 | 10:25 | 0.0 | 00:00 |
| Total time used: | 01:03:55 | [days:hours:minutes] |
| Total saved: | 3.8630 | days |
| Despatch due to Charterers | 13520.58 | USD |
The shipowner argues that the vessel tendered Notice of Readiness on the 5th of July during office hours, therefore, according to the Charter party (see extracts from the Charter party previously discussed), laytime to start counting next day, on the 6th of July, at 08:00 and continues till 10:55 next day, the 7th of July, as the berth was occupied (see the Statement of Facts, previously presented).
Laytime stops counting at 10:55 as the anchor was up for proceeding to anchorage #2 for inspection. The laytime resumes counting from 12:15 till 13:15 as the vessel is idle waiting for preloading inspection. Unfortunately, the holds are reproved and the vessel fails to pass inspection and therefore has to proceed to anchorage #4 for additional cleaning. The time not to count till the next inspection. The vessel is cleaning holds till the end of the day on Thursday, and also on Friday and Saturday, till 14:00, when she is finally ready to proceed for new inspection. However, the laytime stops counting at 12:00 on Saturday (SSHEX 12:00 clause of the Charter party) and not to resume till 08:00 Monday. However, loading is completed at 10:55 on Sunday. Time not to count. Time for fumigation not to count as well.
Therefore the Shipowners consider despatch of 13520.58USD due to Charterers, and request the Charterers to provide comments and/or confirmation onto the Owners' calculation.
Extracts from the Charter Party
In order to calculate laytime, we have to look through the relevant clauses of the charter party, which may read as follows.
Time for loading
Vessel to be loaded and spout trimmed at the average rate of 6.000 metric tons per weather working day of 24 consecutive hours, Sundays and holidays excepted - time from 1200 hours on Saturdays to 0800 hours Monday not to count even if used. At the loading port vessel is to tender Notice of Readiness during local office hours and time to count 0800 am next working day. Notice of Readiness is not to be tendered prior to laydays nor within excepted periods.
Laydays/Cancelling
Time for loading not to commence before 0001 hours on the 5th day of July,2010.
Should the vessel not be passed by any national and/or other regulatory bodies, as may be required, and/or independent surveyors, as selected by Charterers, as ready for cargo in every respect and in all compartments and valid written (or by cable/telex/e-mail provided local regulations permit) notice of readiness always accompanied by original pass(es) of said bodies and/or surveyor(s) not have been received at the office of Charterers or their Agents at her loading port before 2400 hors on the 10th day of July 2010, the Charterers or their Agents shall within 6(six) hours after the time of presentation of said bodies and/or surveyor's original pass(es) have the option of cancelling this Charter Party.
Demurrage/Despatch
Demurrage at loading and/or discharging ports, if incurred, to be paid at the rate of US$7000.- (seven thousand dollars) per day pro rata for part of a day.
Any delays caused by ice, floods, quarantine, export or import prohibitions/restrictions, or any other acts of governments, or any other events of "fource majeure" will not count as laytime unless the vessel is already on demurrage. Despatch money earned at loading port(s) to be paid by Owners at half the Demurrage rate for all working time saved at loading port(s) and shall be deducted in acordance with the Charterers' estimate from freight and shall be adjusted on basis of statement of facts. Despatch money earned at discharging port(s) to be paid by Owners at half the Demurrage rate for all working time saved at discharging port(s). Laytime is non-reversile.
Shifting
At load and discharge ports, shifting time from anchorage to first load/discharge berth not to count as laytime, but shifting in between berths is to count as laytime and all shifting expenses are to be for Owner's account.
Fumigation
If required, Charterers privilege to fumigate cargo at their risk, expense and actual time used to count as laytime or time on demurrage, excepted periods always excepted. Master/Owners are not to clause/delay release of Bills of lading by reason of fumigation. Master to be officially advised for the precautions required to be followed during the voyage due to such fumigation(s).
Time for loading
Vessel to be loaded and spout trimmed at the average rate of 6.000 metric tons per weather working day of 24 consecutive hours, Sundays and holidays excepted - time from 1200 hours on Saturdays to 0800 hours Monday not to count even if used. At the loading port vessel is to tender Notice of Readiness during local office hours and time to count 0800 am next working day. Notice of Readiness is not to be tendered prior to laydays nor within excepted periods.
Laydays/Cancelling
Time for loading not to commence before 0001 hours on the 5th day of July,2010.
Should the vessel not be passed by any national and/or other regulatory bodies, as may be required, and/or independent surveyors, as selected by Charterers, as ready for cargo in every respect and in all compartments and valid written (or by cable/telex/e-mail provided local regulations permit) notice of readiness always accompanied by original pass(es) of said bodies and/or surveyor(s) not have been received at the office of Charterers or their Agents at her loading port before 2400 hors on the 10th day of July 2010, the Charterers or their Agents shall within 6(six) hours after the time of presentation of said bodies and/or surveyor's original pass(es) have the option of cancelling this Charter Party.
Demurrage/Despatch
Demurrage at loading and/or discharging ports, if incurred, to be paid at the rate of US$7000.- (seven thousand dollars) per day pro rata for part of a day.
Any delays caused by ice, floods, quarantine, export or import prohibitions/restrictions, or any other acts of governments, or any other events of "fource majeure" will not count as laytime unless the vessel is already on demurrage. Despatch money earned at loading port(s) to be paid by Owners at half the Demurrage rate for all working time saved at loading port(s) and shall be deducted in acordance with the Charterers' estimate from freight and shall be adjusted on basis of statement of facts. Despatch money earned at discharging port(s) to be paid by Owners at half the Demurrage rate for all working time saved at discharging port(s). Laytime is non-reversile.
Shifting
At load and discharge ports, shifting time from anchorage to first load/discharge berth not to count as laytime, but shifting in between berths is to count as laytime and all shifting expenses are to be for Owner's account.
Fumigation
If required, Charterers privilege to fumigate cargo at their risk, expense and actual time used to count as laytime or time on demurrage, excepted periods always excepted. Master/Owners are not to clause/delay release of Bills of lading by reason of fumigation. Master to be officially advised for the precautions required to be followed during the voyage due to such fumigation(s).
Wednesday 15 September 2010
Notice of Readiness (NOR)
The Notice of Readiness is tendered by the Master to notify concerned parties (the Charterer, the Shipowner and the Agent) that the vessel has reached agreed point (e.g. commercial limits of the port) in loadready condition, and that the vessel is in all respect ready to commence loading (or discharging) the cargo.
For example, NOR may look like as follows: MV LIN QIN/OGHU at 0815 LT (1115 UTC) on 5th of June anchored at Santos anchorage No. 5 because the berth is occupied. Position 2403S/04613N. On arrival at this position vessel is considered as arived vessel at the port of Santos and she is in every respect ready to commence loading cargo of corn in bulk ttl abt 30120 mts into holds Nos. 1,2,3,4 and 5 according to the terms and conditions of the Charter party dated 20/05/2010. Valid as Notice of Readiness.
For example, NOR may look like as follows: MV LIN QIN/OGHU at 0815 LT (1115 UTC) on 5th of June anchored at Santos anchorage No. 5 because the berth is occupied. Position 2403S/04613N. On arrival at this position vessel is considered as arived vessel at the port of Santos and she is in every respect ready to commence loading cargo of corn in bulk ttl abt 30120 mts into holds Nos. 1,2,3,4 and 5 according to the terms and conditions of the Charter party dated 20/05/2010. Valid as Notice of Readiness.
Statement of Facts (SOF)
We herebelow present an example of Statement Of Facts
Rain periods occured in port during vessel's staying : nihil.
Holidays occured while vessel's stay : nihil.
Given this Statement of Facts and Notice of Readiness, we can now proceed to laytime calculations.
| Date | From | Till | Fact |
|---|---|---|---|
| July 05th, 2010 (Mon) | 08:15 | Vesel arrived/ NOR tendered by Master / Vessel anchored | |
| 08:15 | 24:00 | Vessel anchored at anchorage#5 waiting berth vacancy | |
| July 06th, 2010 (Tue) | 00:00 | 24:00 | Vessel anchored at anchorage#5 waiting berth vacancy |
| July 07th, 2010 (Wed) | 00:00 | 10:55 | Vessel anchored at anchorage#5 waiting berth vacancy |
| 10:55 | Anchor up for proceeding to anchorage #2 for pre holds inspection | ||
| 10:55 | 12:15 | Vessel approaching/anchored at anchorage #2 | |
| 12:15 | 13:15 | Vessel at anchorage #2 waiting surveyor for preloading inspection | |
| 13:15 | 14:30 | Holds inspection performed by Control Union / All holds reproved | |
| 14:30 | 14:45 | Anchor up for proceeding to anchorage #4 for additional holds cleaning | |
| 14:45 | 15:40 | Vessel approaching/anchored at anchorage #4 | |
| 15:40 | 24:00 | Vessel anchored at anchorage #4 waiting berth vacancy and cleaning holds | |
| July 08th, 2010 (Thu) | 00:00 | 24:00 | Vessel anchored at anchorage #4 waiting berth vacancy and cleaning holds |
| July 09th, 2010 (Fri) | 00:00 | 12:30 | Vessel anchored at anchorage #4 waiting berth vacancy and cleaning holds |
| 12:30 | 24:00 | Berth vacant/ Vessel anchored at anchorage #4 cleaning cargo holds | |
| July 10th, 2010 (Sat) | 00:00 | 13:00 | Berth vacant/ Vessel anchored at anchorage #4 cleaning cargo holds |
| 13:00 | 14:00 | Anchor up for berthing at ABT Terminal / POB for berthing | |
| 14:00 | 15:10 | Berthing maneuvers / All fast alongside at ABT | |
| 15:10 | 15:25 | Gangway preparation by ship's crew | |
| 15:25 | 16:00 | Commenced initial draft survey / waiting surveyor from Ministry of agriculture | |
| 16:00 | 17:15 | All cargo holds inspected and approved by Ministry of agriculture surveyor | |
| 17:15 | 17:25 | Preparation ashore by port operators / completed initial draft survey | |
| 17:25 | 17:40 | Preparation onboard by ship's crew | |
| 17:40 | Commenced loading operations at hold #2 and # 4 | ||
| 17:40 | 20:50 | Loading in progress hold #2 and # 4 | |
| 20:50 | 20:55 | Loading in progress hold # 4/ Shifting shore loader from #2 to #1 | |
| 20:55 | 21:10 | Loading stopped / i Shifting shore loader from #2 to #1 and from #4 to #5 | |
| 21:10 | 24:00 | Loading in progress #1 and #5 | |
| July 11th, 2010 (Sun) | 00:00 | 01:30 | Loading in progress #1 and #5 |
| 01:30 | 01:50 | Loading in progress #5 / Shifting shore loader from #1 to #2 | |
| 01:50 | 02:20 | Loading in progress #2 and #5 | |
| 02:20 | 02:35 | Loading in progress #2 /Shifting shore loader from #5 to #4 | |
| 02:35 | 04:00 | Loading in progress #2 and #4 | |
| 04:00 | 04:15 | Loading in progress #2 / Defect at shore loader working at #4 | |
| 04:15 | 04:45 | Loading in progress #2 and #4 | |
| 04:45 | 04:55 | Loading in progress #4 only | |
| 04:55 | 05:10 | Loading stopped / shifting shore loader from #2 to #3 | |
| 05:10 | 08:25 | Loading in progress #3 only | |
| 08:25 | 09:10 | Loading stopped by intermediary draft survey by chief officer | |
| 09:10 | 09:30 | Loading in progress #3 only | |
| 09:30 | 09:50 | Loading stopped / Shifting shore loader from #3 to #4 | |
| 09:50 | 10:25 | Loading in progress #4 | |
| 10:25 | Completed loading operations at hold #4 | ||
| 10:25 | 12:40 | Preparing/Signing cargo documents | |
| 10:40 | 12:20 | Final draft survey performed as requested by terminal | |
| 10:30 | 11:10 | Cargo fumigation performed | |
| 12:50 | Pilot on board for sailing | ||
| 12:50 | 13:08 | Unberthing maneuvers | |
| 13:08 | 13:28 | Vessel sailed. | |
Rain periods occured in port during vessel's staying : nihil.
Holidays occured while vessel's stay : nihil.
Given this Statement of Facts and Notice of Readiness, we can now proceed to laytime calculations.
Tuesday 14 September 2010
Preamble
Laytime calculation is a very important part of the freight balance settlement. The Shipowner and the Charterer do their laytime calculations and compare their final figures to come to the final despatch/demurrage settlement: despatch - if the vessel sailed sooner than expected or demurrage - if the vessel was too late to sail as preplanned. Moneywise, despatch is a premium paid by the Shipowner to the Charterer for saving ship's valuable time. While demurrage is a penalty paid by the Charterer to the Shipowner for delaying the vessel beyond the planning horizon. Usually, demurrage equals to the ship's daily revenue, while despatch is half of the demurrage. The Charterers are interested to complete handling the vessel as soon as practically possible to obtain despatch, while the Shipowners are not always keen on being on demurrage as they risk to lose the next valuable deal. The demurrage may be beneficial for the Shipowner when the freight market is becoming weak. Shipagent provides both the Shipowner and the Charterer with the Statement of Facts (SOF) containing the records of operations, timings of events, stoppages, shifts, weather observations (important for weather sensitive cargos) ... etc.
Example of fact may look like as follows:
Both parties decide on which events to count as laytime (and which not) by taking into account the clauses of the governing Charter Party.
Example of fact may look like as follows:
| Date | From | Till | Description |
|---|---|---|---|
| 14/09/2010 | 08:30 | 15:10 | Waiting for berth availability |
Both parties decide on which events to count as laytime (and which not) by taking into account the clauses of the governing Charter Party.
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