Laytime

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this page was last time updated on:  21-Jan-2012

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Case Law

The President Brand [1967] 2 Lloyd’s Rep 338

Sociedad Carga Oceanica S.A. v. Idolinoele Vertriebsgesellschaft M.B.H. (The Angelos Lusis) [1964] 2 Lloyd’s Rep. 28

The Delian Spirit [1971] 1 Lloyd’s Rep 506

EL Oldendorff & Co GMBH v Tradax Export SA (The Johanna Oldendorf) [1974] AC 479

Nereide SpA di Navigazione v Bulk Oil International Ltd (The Laura Prima) [1982] 1 Lloyd’s Rep 1

Sametiet M/T Johs Stove v Istanbul Petrol Rafinerisi A/S, (The Johs Stove) [1984] 1 Lloyd’s Rep 38

K/S Arnt J Moerland v Kuwait Petroleum Corporation (The Fjordaas)[1988] 2 All ER 714, [1988] 1 Lloyd’s Rep 336

Palm Shipping Inc. v Kuwait Petroleum Corporation, (The Sea Queen) [1988] 1 Lloyd’s Rep 500

Voyage Charterparty

Laytime. Duty to procure the berth ‘reachable on arrival’

The Angelos Lusis [1964] 2 Lloyd’s Rep. 28
The President Brand [1967] 2 Lloyd’s Rep 338
The Delian Spirit [1971] 1 Lloyd’s Rep 506
The Laura Prima [1982] 1 Lloyd’s Rep 1

The berth is required to have two characteristics: it has to be safe and it has also to be reachable on arrival.
By Lord Roskill in Nereide SpA di Navigazione v Bulk Oil International Ltd (The Laura Prima) [1981] 3 All ER 737, [1982] 1 Lloyd’s Rep 1

When valid Notice of Readiness tendered in compliance with charterparty requirements it starts running of laytime. Several examples given on Legal readiness of the vessel and Premature and Invalid NOR pages consider situation when owner’s failure to comply with charterparty provisions regarding tender of NOR invalidates otherwise valid notice.

But what should happen if the notice of readiness becomes invalid either due to the charterer’s breach of contract or without fault from either side? In such situation laytime and demurrage regime will not start at all and instead of liquidated damages by way of demurrage, damages for detention will be available to the owners. From the first sign it may appear that, if damages for detention are calculated at the demurrage rate for the period of delay, then there is little difference between demurrage and damages for detention. The crucial character of this distinction becomes evident from litigation concerned to ASBATANKVOY form and ‘reachable on arrival’ provision in clause 6.

Asbatankvoy
6. NOTICE OF READINESS.

Upon arrival at customary anchorage at each port of loading or discharge, the Master or his agent shall give the Charterer or his agent notice by letter, telegraph, wireless or telephone that the Vessel is ready to load or discharge cargo, berth or no berth, and laytime, as hereinafter provided, shall commence upon the expiration of six (6) hours after receipt of such notice, or upon the Vessel’s arrival in berth (i.e., finished mooring when at a sealoading or discharging terminal and all fast when loading or discharging alongside a wharf), whichever first occurs. However, where delay is caused to vessel getting into berth after giving notice of readiness for any reason over which Charterer has no control, such delay shall not count as used laytime.
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