Operational Guide · Registers & Logbooks

# Charter Parties and Cargo-Specific Clauses

2025 brings the first substantial update to ASBATANKVOY since 1977, with digital clauses and ESG compliance: charter parties are not static documents, and every new edition can change the ship's operational obligations.

charter party laytime demurrage chartering

## Operational Explanation

The charter party is the contract governing the ship's charter, with cargo-specific clauses that directly affect on-board operations. Laytime is the time agreed for loading/discharging operations without incurring penalties; if operations exceed this time, demurrage (compensation for the delay) accrues; if operations are completed earlier, despatch (a reward for the time saved) may accrue.

Safe port/safe berth clauses require the charterer to nominate safe ports and berths, with the ship normally required to remain afloat unless otherwise agreed (e.g. "safely aground"). 2025 saw the first substantial revision of ASBATANKVOY since 1977, introducing digital clauses, simplified arbitration and ESG compliance requirements, evidence of how these standard contracts continue to evolve.

## Regulatory Reference

There is no IMO framework for charter parties, which are private-law commercial contracts based on standard industry forms (e.g. ASBATANKVOY, updated in 2025 with digital and ESG clauses) and on established case law on laytime and demurrage.

## Scope of Application

Every ship employed under a voyage or time charter party, with the Master responsible for accurately documenting the timing of loading/discharging operations relevant to the calculation of laytime, demurrage and despatch.

## Procedure / How to Complete It

1. Verify the cargo-specific clauses of the applicable charter party before arrival in port, in particular laytime, demurrage/despatch and safe port/safe berth.
2. Precisely document the time of Notice of Readiness (NOR), the start and end of loading/discharging operations, and every relevant interruption (weather, port holidays).
3. Verify the port/berth nomination by the charterer against the applicable safe port/safe berth clause.
4. Promptly report to the charterer/shipowner every event that may affect the laytime calculation, according to the exclusions provided for in the charter party.
5. Retain all supporting documentation (Statement of Facts, ship's logs) needed for any calculation of demurrage or despatch.

## Practical Example

Example: at the end of the discharging operations, the Master verifies that the total time taken, net of the exclusions provided for in the charter party (e.g. adverse weather conditions), falls within the agreed laytime; if it is exceeded, the detailed documentation of the Statement of Facts supports the calculation of the demurrage due.

## Real Cases

The 2025 ASBATANKVOY revision, the first substantial one since 1977, introduces digital clauses and simplified arbitration specifically designed to reduce disputes in global tanker operations: a sign of how the evolution of standard charter party forms responds to concrete operational needs, including the growing digitalisation of on-board documentation.

## Common Mistakes Mistake Library

Mistake | Consequence | How to avoid it
--- | --- | ---
Time of Notice of Readiness and of loading/discharging operations not documented with sufficient precision | Difficulty in accurately calculating laytime, demurrage or despatch in case of a dispute | Always precisely document NOR, the start/end of operations and every relevant interruption
Cargo-specific clauses of the charter party not verified before arrival in port | Operations conducted without awareness of the specific applicable contractual obligations | Always verify the relevant clauses of the applicable charter party before arrival, not during operations
Port or berth nominated by the charterer accepted without verification against the safe port/safe berth clause | Exposure of the ship to a port or berth that is unsafe under the contractual terms | Always verify the port/berth nomination against the applicable safe port/safe berth clause

## PSC Observations

Charter party clauses are not subject to direct PSC verification, being private commercial contracts; however, the on-board documentation (logs, Statement of Facts) relevant to their calculation may overlap with records checked during a general inspection.

## Operational Tips

- Always document the NOR and the timing of operations with the utmost precision: it is the main defence in any laytime or demurrage dispute.
- Check the cargo-specific clauses before arrival in port, not discover them during operations when it is too late to plan accordingly.
- Promptly report to the charterer every event that may affect the laytime calculation, according to the exclusions provided for in the contract.

## Checklist

- Cargo-specific clauses of the charter party verified before arrival in port
- Notice of Readiness and the timing of operations precisely documented
- Relevant interruptions (weather, holidays) documented according to the exclusions provided for
- Port/berth nomination verified against the safe port/safe berth clause
- Statement of Facts and supporting documentation retained for the calculation of demurrage/despatch

## FAQ

What is laytime?
The time agreed in the charter party for loading/discharging operations without incurring penalties; if operations exceed this time, demurrage accrues in favour of the shipowner.
What is the difference between demurrage and despatch?
Demurrage is the compensation owed to the shipowner if operations exceed the agreed laytime; despatch is the reward owed to the charterer if operations are completed before the agreed laytime.
What does a safe port/safe berth clause require?
That the charterer nominate safe ports and berths for the ship, which must normally remain afloat during the call, unless otherwise explicitly agreed, such as under a 'safely aground' clause.
🎬 Additional photos, videos and interactive diagrams for this topic will be available in a future version of the platform.

## Related Topics

Draft Survey and Determining Cargo Quantity Managing Cargo Claims

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