Charter Parties and Cargo-Specific Clauses

Laytime, demurrage and despatch normally belong to voyage chartering; safe port/berth, always safely afloat and NAABSA are distinct terms to be read in the wording actually incorporated.

Operational Explanation

In voyage chartering, laytime governs allowed time and demurrage/despatch follow the contract. Under a time charter, hire and off-hire normally govern use of time; laytime, demurrage and despatch apply only where the particular charter or a voyage sub-fixture provides. Demurrage is contractual compensation/liquidated damages as characterised by contract and governing law, not a generic penalty.

Regulatory Reference

Read the agreed fixture recap, form and riders, applicable law and clause precedence. The BIMCO Laytime Definitions 2013 apply when incorporated: they are not automatically contract terms.

BIMCO — NAABSA wording: additional berthing wording, subject to owners’ agreement. Check its conditions and required confirmations; a safe-berth clause alone does not authorize taking the ground.

Under the WAITBERTH 2002 model wording, NOR while waiting for an unavailable berth is provided for during ordinary office hours and requires actual readiness warranted by the master; movement from the waiting place to the berth does not count as laytime. Under the NAABSA wording, also check the charterers’ written confirmation of a soft bed and the ability to lie aground without damage. Apply these conditions only where agreed, together with the other fixture terms.

Scope of Application

Voyage charter: apply laytime/demurrage/despatch as agreed. Time charter: apply hire/off-hire and use laytime mechanisms only where expressly incorporated or under a voyage sub-charter. For port/berth separately check safety undertaking, afloat wording, NAABSA, draft, UKC, tide and access restrictions.

Procedure / How to Complete It

1. Identify charter type, parties, incorporated clauses and applicable law; distinguish the head charter from any sub-fixture.
2. Before tendering Notice of Readiness (NOR), check contractual arrival and readiness conditions, recipients, delivery method and permitted times; preserve transmission and receipt evidence.
3. Record events, start/end times, weather and stoppage causes in the Statement of Facts using consistent times; flag inaccuracies before signing.
4. Separate facts from laytime/demurrage or hire/off-hire calculations, referring disputes and contractual deadlines to the Company and advisers.
5. Check safe port/berth, afloat and NAABSA separately; document draft, UKC, tide and restrictions.

Practical Example

BIMCO — WAITBERTH 2002: if incorporated, it allows NOR on arrival while waiting for a berth under specified conditions, but retains actual readiness. Do not transfer this rule to a differently worded fixture. Record the facts and obtain contractual assessment without assuming that any NOR starts laytime.

What Typically Goes Wrong

Applying laytime and demurrage to every time charter, calling demurrage a penalty or deriving always afloat from safe port/safe berth wording alone.

Common Mistakes Mistake Library

What the PSCO Checks

Operational Tips

• The Master records facts and times, not final legal liability.
• Use fixture wording and definitions, not generic defaults.
• Promptly escalate inconsistencies to Company/P&I/counsel.

Preparation checklist

• Fixture recap, form, riders and applicable law identified
• NOR conditions and transmission/receipt evidence checked
• Accurate Statement of Facts and consistent times
• Laytime/demurrage distinguished from hire/off-hire
• Safe berth, afloat, NAABSA and navigational limits checked separately

FAQ

Related Topics

Last substantive revision of this page: 16 September 2026 · page fingerprint 1d2841f0680e