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CHARTERINGDinesh N. Kutty

LAYTIME

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LAYTIME

TIME PERIOD AGREED BETWEEN THEPARTIES (SHIPOWNER & CHARTERERS) TOCARRY OUT LOADING & DISCHARGINGOPERATIONS.

THREE TYPES :-

• FIXED LAYTIME• CALCULABLE LAYTIME• INDEFINITE LAYTIME (CQD)

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LAYTIME (Cont…)

• LAYTIME ALLOWED• LAYTIME TAKEN• LAYTIME SAVED

LAYTIME TAKEN > LAYTIME ALLOWED = DEMURRAGELAYTIME ALLOWED > LAYTIME TAKEN = DESPATCH

CONCEPT OF NON - REVERSIBLE LAYTIME ANDREVERSIBLE LAYTIME.

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LAYTIME CALCULATIONS1. Read relevant clauses in the governingcontract.

2. Obtain the Statement of Facts.3. Determine “Laytime allowed”.4. Establish “Commencement of Laytime”.(Arrival, Readiness and contractualcommitments – congestion, turn time)

5. Allow for “Interruptions of Laytime”.6. Establish “Cessation of Laytime”.(Cargo termination)

7. Calculate Despatch or Demurrage.

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INTERRUPTIONS OF LAYTIME

1. WEEKENDS AND HOLIDAYS.

2. SHIFTING BETWEEN BERTHS.

3. STRIKES.

4. BAD-WEATHER.(WWD, WD WP, WWD of 24 consecutive hours)

5. BREAK-DOWNS.

ILLUSTRATION NO. #D

FROM THE FOLLOWING DATA PREPARE A LAYTIME CALCULATION SHEET AND CALCULATE DEMURRAGE/DESPATCH BASIS (I) NON-REVERSIBLE METHOD AND II) REVERSIBLE METHOD?

STATEMENT OF FACTS – LOADING GLADSTONE, AUSTRALIA

SUN 28TH FEB 2000 HRS M.V. PACIFIC BRAVE ARRIVEDMON 1ST MAR 0900 HRS NOR TENDERED

1300 HRS LOADING COMMENCED FOR COALWED 3RD MAR 1200 HRS LOADING COMPLETED

1415 HRS VESSEL SAILED

STATEMENT OF FACTS – DISCHARGING VISAKHAPATNAM

MON 22ND MAR 0330 HRS M.V. PACIFIC BRAVE ARRIVED0630 HRS VESSEL BERTHED0915 HRS NOR TENDERED1200 HRS DISCHARGE COMMENCED

SAT 27TH MAR 1200 HRS DISCHARGE COMPLETED1530 HRS VESSEL SAILED

CHARTER-PARTY CLAUSE READS –

“CHARTERERS TO BE ALLOWED 4 WWD, SHEX FOR LOADING AND 2 WORKING DAYS WEATHERPERMITTING SHINC FOR DISCHARGING. TIME TO COUNT FROM NOON IF NOTICE OF READINESS ISTENDERED BEFORE NOON, AND AT 0800 HRS NEXT WORKING DAY IF THE NOTICE IS TENDERED IN AFTERNOON DURING WORKING HOURS. DEMURRAGE @ USD. 5000 PER DAY AND PRORATA TO BE PAID. THEDESPATCH, IF ANY, IS TO BE AT HALF DEMURRAGE RATE FOR ALL WORKING TIME SAVED.”

SOLUTION TO ILLUSTRATION NO. #D

A. LAYTIME ALLOWED -

LOADPORT : 4 WWD, SHEXDISPORT : 2 WD, WEATHER PERMITTING, SHINC

B. COMMENCEMENT OF LAYTIME -

LOADPORT : NOR TENDERED 0900 ON MONDAY 1ST MARCHTIME STARTS AT 1200 HRS ON MONDAY 1ST MARCH

DISPORT : NOR TENDERED 0915 ON MONDAY 22ND MARCHTIME STARTS AT 1200 HRS ON MONDAY 22ND MARCH

C. INTERRUPTIONS -

NIL

D. CESSATION OF LAYTIME -

LOADPORT : LOADING COMPLETED 3RD MAR, WED 1200 HRSDISPORT : DISCHARGING COMPLETED 27TH MAR, SAT 1200 HRS

ILLUSTRATION NO. #D CONTD…

E. LAYTIME CALCULATIONS

I) NON-REVERSIBLE METHOD

LOADPORT : GLADSTONE (AUSTRALIA), LAYTIME ALLOWED : 4D WWD SHEX

DATE DAY TIME TIME USED REMARKSHRS DD-HH-MM

1ST MAR MON 1200-2400 00-12-00 LAYTIME STARTED AT 12002ND MAR TUE 0001-2400 01-00-003RD MAR WED 0001-1200 00-12-00 LOADING COMPLETED

TOTAL 02-00-00

DISPORT : VIZAG (INDIA), LAYTIME ALLOWED : 2D WP SHINC

DATE DAY TIME TIME USED REMARKSHRS DD-HH-MM

22ND MAR MON 1200-2400 00-12-00 LT STARTED AT 120023RD MAR TUE 0001-2400 01-00-0024TH MAR WED 0001-2400 01-00-0025TH MAR THU 0001-2400 01-00-0026TH MAR FRI 0001-2400 01-00-0027TH MAR SAT 0001-1200 00-12-00 DISCHARGING COMPLETED

TOTAL 05-00-00

ILLUSTRATION NO. #D CONTD…

FINAL CALCULATIONS (NON-REVERSIBLE METHOD)

AT LOADPORT : LAYTIME ALLOWED : 4 DAYSLAYTIME TAKEN : 2 DAYSLAYTIME SAVED : 2 DAYS

DESPATCH = USD 2500 PER DAY

TOTAL DESPATCH FOR LOADPORT I.E USD.2500 X 2 DAYS I.E USD. 5000 PER DAY

AT DISPORT : LAYTIME ALLOWED : 2 DAYSLAYTIME TAKEN : 5 DAYSEXCESS LAYTIME : 3 DAYS

DEMURRAGE = USD. 5000 PER DAY

TOTAL DEMURRAGE FOR LOADPORT I.E USD.5000 X 3 DAYS I.E USD.15000 PER DAY

NET RESULT: USD. 10,000/- DEMURRAGE PAYABLE BY CHARTERERS TO OWNERS

ILLUSTRATION NO. #D CONTD…

II) REVERSIBLE METHOD

LOADPORT LAYTIME ALLOWED - 4 WWD SHEXDISPORT LAYTIME ALLOWED - 2 WD SHINC

TOTAL LAYTIME ALLOWED – 6 DAYS

DATE DAY TIME TIME USED REMARKSDD-HH-MM

1ST MAR MON 1200-2400 00-12-00 LAYTIME STARTED AT 12002ND MAR TUE 0001-2400 01-00-003RD MAR WED 0001-1200 00-12-00 LOADING COMPLETED22ND MAR MON 1200-2400 00-12-00 LT STARTED AT 120023RD MAR TUE 0001-2400 01-00-0024TH MAR WED 0001-2400 01-00-0025TH MAR THU 0001-2400 01-00-0026TH MAR FRI 0001-2400 01-00-0027TH MAR SAT 0001-1200 00-12-00 DISCHARGING COMPLETED

TOTAL 07-00-00

FINAL CALCULATIONS

LAYTIME ALLOWED : 6 DAYSLAYTIME TAKEN : 7 DAYSEXCESS LAYTIME : 1 DAY

DEMURRAGE FOR 1 DAY @ USD. 5000/DAY = USD. 5000/-

ILLUSTRATION NO. #E

FROM THE FOLLOWING DATA PREPARE A TIME SHEET AND CALCULATEDEMURRAGE / DESPATCH AT LOADPORT –

MV PANAMAX LOADED 74,000 TONS OF IRON ORE.

STATEMENT OF FACTSANCHORED - 7TH TUE 0800 HRSNOR TENDERED - 7TH TUE 0900 HRSSHIFTING TO BERTH - 7TH TUE 0900 – 1100 HRSLOADING STARTED - 7TH TUE 1200 HRSLOADING COMPLETED - 10TH FRI 0800 HRSVESSEL SAILED - 10TH FRI 1000 HRS

CHARTER-PARTY DETAILS :CARGO TO BE LOADED @ 20,000 T/DAY SHINCDEMURRAGE RATE $9,500 PDPR, HALF DESPATCH ON LAYTIME SAVEDTIME TO COUNT FROM 1400 IF NOR TENDERED BEFORE NOON AND FROM 0600NEXT WORKING DAY IF NOR TENDERED IN THE AFTERNOON.

IF LOADING COMMENCES BEFORE NOTICE EXPIRES 1/2 SUCH TIME TO COUNTAS LAYTIME.

(NMIS MODEL TEST PAPER)

SOLUTION TO ILLUSTRATION NO. #E

A. LAYTIME ALLOWED -VESSEL TO LOAD 74,000 TONS OF IRON ORE @ 20,000 T/DAY SHINCI.E. 74,000 T / 20,000 = 3.7 DAYS

B. COMMENCEMENT OF LAYTIME -NOR TENDERED - 7TH TUE 0900 HRSLOADING STARTED - 7TH TUE 1200

TIME TO COMMENCE ON 7TH TUE 1400 HRS. HOWEVER, THE LOADING COMMENCED 7TH TUE 1200 HRS. ACCORDINGLY, LAYTIME TO COMMENCE ON 7TH TUE 1200 HRS.

C. INTERRUPTIONSNIL

D. CESSATION OF LAYTIME -LOADING COMPLETED - 10TH FRI 0800 HRS

ILLUSTRATION NO. #E (CONTD…)

E. LAYTIME CALCULATIONS

DATE DAY TIME TIME USED REMARKS(HRS) DD-HH-MM

7TH TUE 1200-1400 00-01-00 HALF TIME TO COUNT7TH TUE 1400-2400 00-10-008TH WED 0001-2400 01-00-009TH THU 0001-2400 01-00-0010TH FRI 0001-0800 00-08-00 CESSATION OF LAYTIMETOTAL LAYTIME USED 02-19-00

LAYTIME TAKEN : 2 DAYS 19 HRSI.E 2.79 DAYS

FINAL CALCULATIONSLAYTIME ALLOWED : 3.70 DAYSLAYTIME TAKEN : 2.79 DAYSLAYTIME SAVED : 0.91 DAYS

DESPATCH RATE : USD. 9500/2 = USD. 4750/-

TOTAL DESPATCH AMOUNT : USD. 4322.50/-

Beckman RSIS 23 Feb 2009 3Gulf of Aden

LINER & FIO TERMS(years 2000,2005,2006,2007,2008)

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LINER & FIO TERMS

INCOTERMS FOR VOYAGE CHARTER IN WHICH THE SHIPOWNERPAYS FOR TALLY, LOADING, STOWING, TRIMMING ANDDISCHARGING COSTS. LINER TERMS ARE SIMILAR TO “GROSSTERMS”

UNDER FIO, FIOS, FIOT, FIOST TERMS COST OF TALLY, LOADING,STOWING TROMMING AND DISCHARGING ARE ON CHARTERERSACCOUNT.

(IN ALL CASES AS ABOVE, PORT CHARGES ARE TO BE PID BYSHIPOWNER).

IN GEOGRAPHICAL ROTATION(YRS: 2004,2006,2007,2008,2009)

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IN GEOGRAPHICAL ROTATION

THIS TERM IS USED WHEN CHARTERERS AREGIVEN AN OPTION TO LOAD AND DISCHARGETHE SHIP IN ONE OR MORE PORTS OR RANGE OFPORTS.

IT IS MAINLY TO STATE THAT IF CHARTERERSEXERCISE THE OPTION OF CALLING THE VESSELAT MORE THAN ONE PORT, THE VESSEL SHALLPROCEED IN GEOGRAPHICAL ROTATION.

FOR EXAMPLE:- “WITHOUT PROCEEDING NORTHTO SOUTH AND THEN AGAIN NORTH”.

I.G.S.(YRS: 2001,2002)

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INERT GAS SYSTEM

INERT GAS SYSTEM. IT IS A SYSTEM WHEREINEXHAUST GASES ARE INJECTED INTO CARGOTANKS TO KEEP THE OXYGEN CONTENT BELOWCOMBUSTION LEVELS.

AS PER IMO REQUIREMENTS, AFTER TANKESARE INERTED THE OXYGEN LEVEL SHOULD BEBROUGHT BELOW 8% BY VOLUME IN THEATOMSPHERE OF SHIP CARGO TANKS.

BROKEN STOWAGE(YRS: 2004,2005,2009)

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BROKEN STOWAGE

THE SPACE WASTED IN A SHIP’S HOLDS WHENSTOWING GENERAL CARGO WHICH IS UNEVENAND PACKED.

RELET CLAUSE & RIDER CLAUSE(YRS: 2001,2002,2006,2007,2008,2009)

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RELET CLAUSE & RIDER CLAUSE

RELET CLAUSE GENERALLY APPLIES TO TIMECHARTER PARTIES (TCP). UNDER THE SHELTER OFTHIS CLAUSE, THE CHARTERER CAN RELET / SUBLETTHE VESSEL TO A THIRD PARTY (ANOTHERCHARTERER). THE CLAUSE READS “ CHARTERERS MAYSUB-LET THE VESSEL, BUT SHALL ALWAYS REMAINRESPONSIBLE TO OWNERS FOR DUE FULFILLMENT OFTHIS CHARTER.

RIDER CLAUSES ARE SET OF ADDITIONAL CLAUSESWHICH SUBSTITUTE OR SUPPLEMENT THE CLAUSES INTHE ORIGINL STANDARD C/P FORM. GNERALLY, IF ARIDER CLAUSE CONTRADICTS A PRINTED CLAUSE INTHE C/P FORM, THE RIDER CLAUSE PREVAILS.

P&I BUNKERING CLAUSE(YRS: 2007,2009)

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P&I BUNKERING CLAUSE

THE SHIP IS PERMITTED TO DEVIATEWITHOUT BREAKING THE CONTRACT FORLIFTING BUNKERS AT PORTS WHERE IT MAYBE CHEAPER.

SHEX EIU AND SHEX UU(YRS: 2000, 2005)

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SHEX EIU & SHEX UU

SHEX EIU : SUNDAYS HOLIDAYS EXCEPTEDEVEN IF USED I.E. TIME NOT TO COUNT EVENIF VESSEL IS UNDER USE DURING HOLIDAYSAND SUNDAYS.

SHEX UU : SUNDAYS HOLIDAYS EXCEPTED UNLESS USED I.E. IF USED, TIME TO COUNT.

CIVIL LIABILITY CONVENTION(YRS:2000, 2004)

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CIVIL LIABILITY CONVENTION

THERE ARE TWO INTERNATIONALCONVENTIONS VIZ. CIVIL LIABILITY FOR OILPOLLUTION DAMAGE, 1969 AND LATERAMENDED 1992. ALL SHIPS SHOULD CARRYCIVIL LIABILITY CERTIFICATE (CLC) WHICHCERTIFIES THAT THERE IS A POLICY OFINSURANCE AND FINANCIAL SECURITY FOROIL POLLUTION DAMAGE AS STIPULATED INTHE CONVENTION. NAME OF INSURER ISMENTIONED IN THE CLC CERTIFICATE. THECLC CERTIFICATE IS GENERALLY VALID FOR1 YEAR.

LPG V/S LNG (YR: 2004)

LNG LPG

LNG COMPRISES OF ETHANE AND METHANE.

LPG COMPRISES OF PROPANE AND BUTANE.

LNG IS OBTAINED FROM DEDICATED GAS FIELD AND CARGO IS CARRIED IN INSULATED TANKES AT MINUS 104 DEG C AND MINUS 176 DEG C.

LPG IS A BY-PRODUCT OF OIL PRODUCING PROCESS AND COOLED TO MINUS 50 DEG C.

LNG IS CLEAN FUEL AND IT IS ENVIRONMENTAL FRIENDLY. WITH FOCUS ON GREEN HOUSE GAS EMISSION AND URBAN AIR QUALITY, LNG IS BECOMING A POPULAR FUEL.

LPG IS PRIMARILY USED DOMESTICALLY AS A MEDIUM OF COOKING AND IN INDUSTRIAL HOUSES FOR HEATING PURPOSES.

LNG SHIPPING IS HIGHLY CAPITAL INTENSIVE. GENERALLY, CONSOTIA / J.V’S ARE FORMED TO OWN AND OPERATE LNG CARRIERS.

THERE ARE MANY OWNERSHIP COMPANIES WHICH COMMERCIALLY OPERATE LPG CARRIERS.

LNG CARRIERS ARE MOSTLY DEPLOYED ON BAREBOAT CHARTER OR LONG TERM TIME CHARTER. GENERALLY, NOT VISIBLY AVAILABLE IN SPOT MARKET.

LPG CARRIERS ARE DEPLOYED ON TIME CHARTER OR VOYAGE CHARTER. IT IS EVIDENTLY PRESENT IN SPOT MARKET.

CBT & SBT(YRS: 2004,2005)

CBT – CARGO BALLAST TANKS.SBT – SEGREGATED BALLAST TANKS.

HEAVY GRAINS & LIGHT GRAINS(YRS: 2002)

HEAVY GRAINS – WHEAT (SF:44-49), SOYABEANS(SF: 48-52) AND SORGHUMS (SF: 44-49)

LIGHT GRAINS: BARLEY AND OATS (SF ABOVE80)