Laytime and Demurrage

Module matrix

6 modules. Learning outcomes and content as approved.

• 01Laytime and Demurrage - Introduction and Context

  Learning outcomes

  Explain basic chartering principles and the principal charterparty types. Distinguish laytime, demurrage and despatch. Identify the parties and documents relevant to chartering. Explain the legal basis of laytime and demurrage.

  Module content

  Charterers, shipowners, ship managers and brokers. Contracts of carriage; laytime, demurrage and despatch. Chartering practice; time, voyage and bareboat charterparties; freight and hire. Fixing a voyage charter. Notice of Readiness, Statement of Facts and arrived-ship concept. Tanker and dry-market clauses, special clauses, laytime and freight rate.

• 02Defining Laytime

  Learning outcomes

  Explain the legal and operational nature of laytime. Distinguish fixed and customary laytime and relevant rates. Determine commencement of laytime and relevant exceptions. Analyse interruptions, completion, averaging and reversibility.

  Module content

  Fixed and customary laytime; cargo rates; freight indices and Worldscale. Arrived ship, readiness and Notice of Readiness; wet versus dry cargo. Interruptions and exceptions. Completion of loading or discharge and delay after completion. Role of Statements of Facts and Notices of Readiness. Normal, non-reversible, reversible and average laytime.

• 03Calculating Laytime

  Learning outcomes

  Interpret Laytime Definitions 2013 and charterparty clauses. Determine commencement, duration, cessation and allowed time. Calculate demurrage or despatch. Recognise differences between dry-cargo and tanker laytime. Complete calculations involving multiple charters.

  Module content

  Tanker and dry-cargo laytime. Statement of Facts, timesheets and the calculation sequence. Multiple charters. SHEX, SHEX UU, WWD and related expressions. Waiting-for-berth clauses. Tanker laytime. Case studies and practical calculation examples.

• 04Demurrage, Detention and Despatch

  Learning outcomes

  Apply contract-law principles to demurrage, detention, despatch and deadfreight. Determine demurrage and despatch rates in dry and liquid trades. Assess charterer liability and termination of demurrage. Explain deadfreight and relevant common-law principles. Compare normal, reversible and average laytime calculations.

  Module content

  Relevant contract-law fundamentals. Demurrage, stoppage and termination. Liability for demurrage and damages for detention. Despatch and deadfreight. Common-law cases. Working-time-saved and all-time-saved calculations. Comparison of normal, reversible and average laytime.

• 05Calculating Demurrage

  Learning outcomes

  Perform dry- and wet-charter demurrage calculations. Relate charterparty drafting to operational consequences and claims. Identify interpretation risks and differences between agreement and practice. Apply time-bar and termination rules. Explain relevant insurance support.

  Module content

  Effect of charterparty terms and demurrage clauses. Definitions and basic calculations. Time-bar clauses. Termination of demurrage in dry and liquid cargo operations. Collection of demurrage or despatch and balance-payment clauses. P&I, freight-demurrage-and-defence and loss-of-hire insurance.

• 06Laytime, Demurrage and Despatch in Practice

  Learning outcomes

  Complete wet- and dry-cargo calculations. Analyse charterparty clauses and supporting documentation. Explain dispute-resolution and arbitration procedures. Interpret an arbitration award. Apply laytime and demurrage principles in chartering practice.

  Module content

  Wet-cargo case study and practical exercise. Dry-cargo calculation examples. Statements of Facts, Notices of Readiness and bills of lading. Arbitration case study: points of claim, charterer defence, owner reply and award. Charterparty simulation, voyage outcome and timesheet.