A-Z Essential Guide to Laytime and Demurrage
Select Other "city & date"
A-Z Essential Guide to Laytime and Demurrage Course
Introduction:
Master the A to Z of Chartering Contracts, Laytime, and Demurrage. The shipping adventure, sometimes called the carriage of goods by sea involves several stages from the loading voyage, with the vessel sailing in ballast to the loading port, the loading operation, and then the carrying voyage until the unloading or discharging of the cargo. The shipowner's and charterers' roles and responsibilities in every stage and the interplay between them and how it pans out during a voyage will determine the success or failure of that voyage. It is important to understand contractual provisions in a charter party and negotiate the terms to avoid pitfalls in chartering the ships and to provide for the calculating of laytime and demurrage which will invariably affect all the parties’ bottom line.
Course Objectives:
By the end of the course, participants will be able to:
- Attain comprehensive and in-depth knowledge of ship charter contracts
- Recognize the differences between the many types of charter parties
- Understand the jargon and abbreviations
- Appreciate the rights and obligations of Charterers and Owners
- Avoiding pitfalls in negotiating chartering contracts
- Manage & Mitigate the risks involved in chartering vessels
Who Should Attend?
The training course is highly recommended for new entrants to the shipping industry, staff in liner shipping companies, chartering, and trading companies. It is particularly useful for staff involved in the day-to-day shipping operations or administration such as:
- Contract Professionals / Negotiators
- Procurement Personnel
- Chartering Personnel
- Legal Advisors / Personnel
- Freight Forwarders
- Shipping Agents
- Marine Insurers
- Legal Advisors
- Finance
Course Outlines:
Introduction to Ship Chartering, Laytime & Demurrage
- The basic principles of chartering
- Different types of chartering: time, voyage, and bareboat
- Understanding Shipowner's and Charterer's roles, rights, and obligations
- Common Contract & Commercial terms of charter parties
- Examples of charter parties used in different trades
- Understanding shipping trade “jargon”
- Understand what is laytime, demurrage, and dispatch
- Case Studies Reviewed
- Roleplay – Negotiating a Voyage Charter Party
Defining Laytime
- Legal and operational issue: the laytime
- All possibilities and remedies are undertaken
- The types of laytime
- The complications that may occur in the commencement of laytime
- What can be considered an exception for laytime commencement
- Review of Recent Caselaw
Calculating Laytime
- How to interpret “Laytime Definitions 2013” and charter party clauses
- The commencement of laytime
- How to assess the duration or laytime
- The cessation of laytime
- How to estimate the demurrage/dispatch earned
- How to recognize fundamental differences between dry cargo and tanker laytime
- How to make a laytime calculation of multiple charters
- Reviewing and analyzing case studies
Defining Demurrage, Detention, and Dispatch
- The fundamental contract law relating to demurrage, damages of detention, dispatch, and dead freight
- How to determine the rate of demurrage in dry cargo and liquid cargo trades
- The liability of charterers for demurrage
- How to assess the termination of demurrage periods
- How to determine the rate of dispatch in dry cargo trades
- The responsibility of the charterer to load complete cargo
- The effect of dead freight on demurrage
- The content and rationale of past cases of English Common Law
- How to estimate the demurrage/dispatch earned
- Practical differences in the dispatch calculation
- Practical differences between normal, reversible, and average laytime
Calculating Demurrage
- How to define laytime and demurrage
- How to perform demurrage calculation both for dry and wet charters
- The consequence of the 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
- Analyzing charter party clauses and documents required for calculations
