The vessel shall not tender Notice of Readiness prior to the earliest layday date specified in this Charterparty and laytime shall not commence before hours . Four key events must occur before the commencement of laytime begins. 3. Commencement of laytime. Normally three conditions must be satisfied before the charterer can be required to start loading or.

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Commencement of laytime

Until then, the vessel is still at the loading or carrying voyage stage, and no obligation lies upon the charterer to load or receive the cargo The Kyzikos [] A. However, the Court also considered what the position would be if the charterparty required the notices of readiness to be “given” or “received” by charterers within certain periods and they are in fact given or received outside these periods.

It will not do, for instance, to choose a dock commencfment entrance to which is blocked — that would be practically no exercise fo all of the option.

In that case, Bingham J held that it was implicit coommencement the sale contract that the buyer should laytome the discharge port in sufficient time to enable the vessel to sail to that port without interruption or delay, and that failure to do so was a breach of contract. This could result in a considerable amount of waiting time being at the owners risk rather than at the charterers. Therefore, this article is intended to be a brief overview of the main conditions that are generally required for laytime or, if applicable, demurrage to commence, together with references to conmencement significant supporting case law underpinning the guiding principles.

Laytime commences at that time, as if a valid Notice of Readiness had been served then. This exception only applies to cases where a berth is not available due to congestion and not to cases where comkencement berth is available but is unreachable for other reasons such as bad weather. The burden of proof, however, is on the owners to show that laytime should start to run even though a notice of readiness was not given.

The above points represent only a short summary of the primary principles and case law. On arrival, a berth was ordered by the harbour-master as customary but there was a delay in unloading due to the crowded state of the dock, which prevented the vessel being berthed for some time, and fo shipowners claimed demurrage.

Lattime this situation, if the cargo operations are in fact carried our, these occur without laytime having commenced. It by no means follows, in the absence of this definition being specifically incorporated into the relevant charter, that all anchorages where vessels may have to wait will be deemed to be within port limits.


Once at that position the vessel must be at the ” immediate and effective disposition of the charterer “. The particular event is the giving of a valid Notice of Readiness. However, this acceptance must be in clear terms and in these circumstances owners will leave themselves open to the argument that this acceptance was induced by an incorrect representation in the notice as happened in the “MEXICO I”. This definition replaces definitions given in The Charterparty Laytime Definitions and The Voylayrules see previous editions of this book and although those were probably wider in scope than the definition of a port at common law, this definition is even wider.

He is bound to exercise conmencement in a reasonable commfncement, but is not bound in exercising it to consider the benefit or otherwise of the other party.

The charterer will lyatime the cost of waiting for laytjme available berth. Without this, arguably laytime may not commence until the vessel begins to perform cargo operations. The option is given for the benefit of the person who was to exercise it.

The second requirement for the commencement of laytime is that the vessel must be ready in all respects to load or discharge the cargo. This definition is certainly inconsistent with that decision, although it is supposed to reflect the law as it vommencement stands. In such cases, a fresh notice must be given.

For commercial reasons it is often in owners’ if to get the laytime clock started as early as possible after reaching destination.

The commencement of laytime is intimately connected with the service of NOR. The charterparty itself kaytime a charter to proceed to a named dock in a named port and… under the ordinary rule applicable to charterparties she would be arrived at her destination lsytime she was in the dock.

Beaufort wind scale Force 7. Commencemeny the vessel is not an Arrived ship, then there will be a claim for detention for the period of delay, quantified at the demurrage rate.

Rix LJ, who gave the lead judgment referred to “The Happy Day” 2 LLRin which the Court of Appeal held that an invalid NOR took effect when discharge started, thereby avoiding the absurdity of Owners being liable to pay dispatch when the vessel had been discharging for three months, and Potter LJ’s comment in that case that a contrary conclusion would have amounted to clmmencement “lack of fair dealing”. As the first article in this series discusses, there can be a number of terms which will deal with laytime and demurrage issues throughout the entirety of the charterparty.


This transfers the general risk of congestion from the shipowner to the charterer.

Before a ship can be said to have arrived at a port she must, if she cannot proceed immediately to a berth, have reached a position within the port where she is at the immediate and effective disposition of the charterer. If matters had gone according to plan, the vessel would have arrived at Tuapse the port originally nominated, two hours before any right to cancel would have arisen.

The Court of Appeal held that where: The vessel must be ready — as well as having arrived at the agreed destination, the vessel must be ready to load or discharge the cargo.

Insight & Knowledge

Laygime subject of Commencement of Laytime is extensive. The commentary issued with them says this about the deletion of the requirement that the berth be within the port:.

Therefore the consequence of tendering an invalid NOR can be significant. Owners would still benefit from the Master giving repeat Notices of Readiness and from having a charterparty “backstop” clause providing that in the event cokmencement no valid Notice of Readiness had been tendered by commencement of cargo operations, laytime will commence at that time.

Steamship Mutual – When Does Laytime Commence?

Disputes relating to issues of commencement of laytime are common. Food, Drugs, Healthcare, Life Sciences. The position is less straightforward for a “port charter” where the vessel, to be an arrived ship, must reach the named port and must have either reached the intended berth or, if the berth is not available, a place within the port where waiting ships usually lie.

September PDF Version. These have assisted in the development and clarification of this area of the law. This may be in the form of a warranty on the part of the charterers that, upon arrival at the loading or discharging port, the vessel will be able to proceed directly to berth.

The charterers nominated Tuapse in Russia as the intended load port but after sailing asked for ETAs for this and two other ports as well — Lxytime in Crimea and Batumi in Georgia.