Become proficient in the comprehensive aspects of Chartering Contracts, Laytime, and Demurrage from A to Z. The shipping industry, often referred to as the transportation of goods by sea, involves multiple stages, starting from the ballast voyage where the vessel sails to the loading port, followed by the loading operation and the subsequent carrying voyage until the cargo is unloaded or discharged. The roles and responsibilities of shipowners and charterers at each stage, as well as the interaction between them throughout the voyage, play a crucial role in determining the success or failure of the journey.

Understanding the contractual provisions within a charter party and skillfully negotiating the terms are vital to avoid pitfalls when chartering ships. Additionally, it is essential to establish clear guidelines for calculating laytime and demurrage, as these factors significantly impact the financial outcomes for all parties involved. By acquiring in-depth knowledge of these areas, you will be equipped to navigate the complexities of chartering contracts, laytime, and demurrage, ultimately ensuring a favorable outcome for all stakeholders.

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 Shipowners and Charterers 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 as 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 full and 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

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