Timesheets and Laytime calculation. After a fixture has been made and the vessel has commenced performance of the charter, “post-fixture activities” become important.
These include liaison between the shipowner and the charterer on various issues but most important, on issues concerning laytime calculation. Laytime calculating requires a familiarity with a Timesheet and perhaps also a statement of facts. The purpose of calculating laytime is not only to calculate the time during which the vessel is made available to the charterer for loading and/or discharging but also to calculate demurrage or despatch if there is time lost or saved. The laytime calculation also provides evidence should a dispute arise, which has to go to arbitration or to a court for solution.
An introduction will be given here to laytime calculation, based on different charterparty terms and for dry cargo and oil cargo. A standard method should be used but it should be mentioned here that various parties-owners, charterers, shippers and cargo receivers-may have methods and forms that suit each party. If standard forms were used, perhaps some areas of dispute may be reduced. Accordingly, the BIMCO standard form of Timesheet can be employed in calculations. In the examples below, headings similar to those in the BIMCO format are used, without the “boxes” above the “laytime computation” and the columns for “Hours worked”, but in addition to the columns on the standard form, additional columns are used for “Laytime allowed” and for “Total time counted” which should add up to the laytime allowed.
It should be remembered that laytime could be fixed or calculated by reference to the rate of loading and/or discharging. For example, in tanker voyage charters, the daytime allowed under the “Worldscale” system of freight is 72 hours for loading and discharging. It is in these circumstances that laytime, demurrage and despatch calculations are significant. When laytime is not fixed or calculable, such as clauses present in the charterparty that the cargo is to be discharged “as customary” or “as fast as the vessel can deliver”, the variables of “customary”, “reasonable time” and so on, are uncertain so that although demurrage and despatch may become payable, to calculate these amounts would have to depend on the various parties’ opinion of “reasonable”, “customary”, etc.
Apart from the significance of fixed or calculable laytime, the accuracy of timesheets also depends on a number of other factors. For example, the quantity of cargo is important if laytime is to be calculated. If the charterparty states that the cargo to be loaded is “ . . . x metric tons plus or minus 5 percent in owners’ option . . .” (” x mt 5pct MOLOO”) when the master gives the Notice of Readiness he will usually have completed his calculations of deadweight that his vessel can lift, taking into account the fuel, water, stores, etc. on board and in the notice he may state the quantity of cargo he is prepared to lead within the percentage limits. When the charterer or shipper accepts this Notice of Readiness the cargo quantity is the quantity that will be used for the calculation of laytime allowed.
Other important factors include:
Category of laytime – separate calculations for loading and discharging ports or options to the charterer for reversing or averaging laytime; two time sheets may still be required.
Method of calculating laytime – for example, “per workable hatch per day”, “Sundays and holidays excepted, unless used” . . ..
Exceptions to laytime – for example, weather working days, Sundays and Holidays excepted and strikes, winch breakdowns . . ..
Commencement of laytime – the laytime clause in the charterparty will state the notice period (if any) after the valid Notice of Readiness is given.
The charterparty clauses stipulating laytime, demurrage and despatch are of extreme importance. Extracts from actual charterparties will be used in the examples, with modifications of quantities and loading and discharging rates in order to round off the calculations as far as possible.
Example 1. “Sundays and Holidays excepted unless used (SHEX u.u.)” and “Weather working days (WWD)”.
A GENCON charterparty, with modifications and rider clauses, provides for:
Cargo: minimum 5000 metric tons (mt) up to full load capacity of the vessel at charterers’ option.
Laytime for loading: 1600 mt per WWD SHEX u.u.
Laytime for discharging: 1200 mt per WWD SHEX u.u.
Laytime clause: “Laytime for loading and discharging shall commence at 1 p.m. if Notice of Readiness is given before noon and at 8 a.m. next working day if notice given during office hours after noon. Notice at loading port to he given to the shippers named in Box 17. Time actually used before commencement of laytime shall count. Time lost in waiting for berth to count as loading or discharging time as the case may be.”
Demurrage and despatch clause: “Demurrage to be paid at the rate of USD 1,800 per day/pro rata for all working time lost. Despatch money to be paid at half the rate of demurrage for all working time saved. Demurrage/ despatch, if any, to be settled directly between Owners and Charterers.”
Statement of facts:
Vessel arrived: 14.00, Thursday 22 November
Vessel berthed: 15.30, 22 November
Notice of Readiness tendered: 14.00, 22 November
Notice of Readiness accepted: 14.00, 22 November
Cargo weight/quantity: 5,500 mt
Loading commenced: 16.00, 22 November
Loading completed: 10.30, 29 November
Laytime allowed for loading: 3d. l0h. 30m. (5500/1600)
Time to count from: 0800, 23 November
Working hours /meal hours of the port: Midnight. to midnight each day except on Sundays, and holidays unless required.
Demurrage: 1d 9h 34m @ $ 1800.00 per day and pro rata = $2512.50
The rain on 28 November occurred after laytime expired and the principle of “Once on demurrage, always on demurrage” applies.
Example 2. “Sundays and Holidays excepted (SHEX)” and “Weather working days (WWD)”.
Same as Example 1 with changes to clauses as follows:
Laytime for loading: 1600 mt per WWD SHEX.
Laytime clause: “Laytime for loading and discharging shall commence at 1 p.m. if Notice of Readiness is given before noon and at 8 a.m. next working day if notice given during office hours after noon Notice at loading port to be given to the shippers named in Box 17”.
Statement of facts:
Vessel arrived: 14.00, Thursday 22 November
Vessel berthed: 15.30, 22 November
Notice of Readiness tendered: 14.00, 22 November
Notice of Readiness accepted: 14.00, 22 November
Cargo weight/quantity: 5,500 mt
Loading commenced: 16.00, 22 November
Loading completed: 10.30, 29 November
Laytime allowed for loading: 3d. l0h. 30m. (5500/1600)
Time to count from: 08.00, 23 November
Working hours/meal hours of the port: Midnight to midnight each day except on Sundays and holidays as required
Exceptions to laytime (and reasons): 24 November, 08.00 to 10.30-rain 26 November-Public holiday; no work 28 November, 16.30 to 23.15-rain
Demurrage: 06h 45m @ $1800.00 per day and pro rata = $506.25
Example 3. Time lost in waiting for berth to count as loading or discharging time, as the case may be.
A GENCON Berth charterparty, with modifications and rider clauses, provides for:
Cargo: Full cargo bulk maize subject to vessel’s capacity; expect vessel to load about 14,250 metric tons.
Laytime for loading: 1,500 mt per WWD, SHEX, u.u.
Laytime clause: “Laytime for loading and discharging shall commence at 1 p.m. if Notice of Readiness is given before noon and at $ a.m. next working day if notice given during office hours after noon. Time actually used before commencement of laytime shall count. Time lost in waiting for berth to count as loading or discharging time as the case may be.”
Demurrage and despatch clause: “At loading and discharging ports demurrage at the rate of US$2,400 per day or pro rata for any pan of a day to be paid by Charterers. Despatch at the rate of US$1,200 per day or pro rata for any part of a day to be paid by Owners for working time saved.”
Total Commission: 2.5 percent
Statement of facts:
Vessel arrived: 0918 hours on Friday 14 June
Pilot boarded to berth vessel: 0700 hours on Sunday 21 July
Vessel berthed: 0912 hours on Sunday 21 July
Notice of Readiness tendered: 0918 hours on Friday 14 June
Cargo weight/quantity: 13,782.90 mt
Loading commenced 1120- hours- On Sunday 21 July
Loading completed 1050 hours on Friday 26 July
Laytime allowed for loading: 9d 4h 32m
Demurrage for 31d 16h 40m @ $2,400 per day and pro rata = $76,066.66
Less total commission @ 2.5 percent = – $ 1,901.66
Net demurrage due to Owners: $74,165.00
Example 4. Despatch payable on “working time saved” .
A GENCON Berth charterparty, with modifications and rider clauses, provides for:
Cargo: Full cargo bulk maize subject to vessel’s capacity; expect vessel to load about 14,250 metric tons and to discharge 5,000 mt at first discharging port with remainder at second discharging port.
Laytime for loading: 1,500 mt per WWD, SHEX, u.u.
Laytime for discharging: 1,500 mt per WWD, SHEX, u.u.
Laytime clause: “Laytime for loading and discharging shall commence at 1 p.m. if Notice of Readiness is given before noon and at 8 a.m. next working day if notice given during office hours after noon. Time actually used before commencement of laytime shall count. Time lost in waiting for berth to count as loading or discharging time as the case may be.”
Demurrage and despatch clause: “At loading and discharging ports demurrage at the rate of US$2,400 per day or pro rata for any part of a day to be paid by Charterers. Despatch at the rate of US$1,200 per day or pro rata for any part of a day to be paid by Owners for working time saved.”
Statement of facts-first discharge port:
Vessel arrived at Pilot station: 0900 hours on Friday 9 August
Vessel berthed: 1240 hours on Friday 9 August
Notice of Readiness tendered: 0900 hours on Friday 9 August
Notice of Readiness accepted: 0900 hours on Friday 9 August
Cargo weight/quantity: 5,000 tons
Discharging commenced: 1630 hours on Friday 9 August
Discharging completed: 1615 hours on Friday 12 August
Laytime allowed for loading: 3d 08h 00m
Despatch: 1 d 05h 30m @+ $1,200.00 per day and pro rata = $1475.00 Example
5. Despatch payable on “working time saved”.
A GENCON Berth charterparty, with modifications and rider clauses, provides for:
Cargo: Full cargo bulk maize subject to vessel’s capacity; expect vessel to load about’ 14,250 metric tons and to discharge 5,000 mt at first discharging port with remainder at second discharging port.
Laytime for loading: 1,500 mt per WWD, SHEX, u.u.
Laytime for discharging: 1,500 mt per WWD, SHEX, u.u.
Laytime clause: “Laytime for loading and discharging shall commence at 1 p.m., if Notice of Readiness is given before noon and at 8 a.m. next working day if notice given during office hours after noon. Time actually used before commencement of laytime shall count.
Time lost in waiting for berth to count as loading or discharging time as the case may be.”
Demurrage and despatch clause: “At loading and discharging ports demurrage at the rate of US$2,400 per day or pro rata for any part of a day to be paid by Charterers. Despatch at the rate of US$1,200 per day or pro rata for any part of a day to be paid by Owners for working time saved.”
Statement of facts – second discharge port:
Vessel arrived at anchorage: 0548 hours on Wed-14 August
Vessel berthed: 1800 hours on Thu. 15 August
Notice of Readiness tendered: 1230 hours on Wed. 14 August
Cargo weight/quantity: 8,782.90 metric tons 14 Aug Wed (Remainder)
Discharging commenced: 1950 hours on Thu. 15 August
Discharging completed: 2250 hours on Sat. 17 August
Laytime allowed for discharging: 5d 20h 32m (8782.90/1500)
Despatch: 3d 05h 42m @ $1,200.00 per day or pro’ rata = $3885.00
Example 6. Despatch payable on “all time saved”.
A GENCON Berth charterparty, with modifications and rider clauses, provides for:
Cargo: Full cargo bulk maize subject to vessel’s capacity; expect vessel to load about 14,250 metric tons and to discharge 5,000 mt at first discharging port with remainder at second discharging port.
Laytime for loading: 1,500 mt per WWD, SHEX, u.u.
Laytime for discharging: 1,500 mt per WWD, SHEX, u.u.
Laytime clause: “Laytime for loading and discharging shall commence at 1 p.m. if Notice of Readiness is given before noon and at 8 a.m. next working day if notice given during office hours after noon. Time actually used before commencement of laytime shall count. Time lost in waiting for berth to count as loading or discharging time as the case may be.”
Demurrage and despatch clause: “At loading and discharging ports demurrage at the rate of US$2,400 per day or pro rata for any part of a day to be paid by Charterers. Despatch at the rate of US$1,200 per day or pro rata for any part of a day to be paid by Owners for all time saved.”
Statement of facts-second discharge port:
Vessel arrived at anchorage: 0548 hours on Wed. 14 August
Vessel berthed: 1800 hours on Thu 15 August
Notice of Readiness- tendered: 0548 hours on Wed. 14 August
Cargo weight/quantity: 8,782.90 metric tons (Remainder)
Discharging commenced: 1950 hours on Thu. 15 August
Discharging completed: 2250 hours on Sat. 17
August Laytime allowed for loading: 5d 20h 32m (8782.90/1500)
Despatch: 4d 05h 42m @ $1,200.00 per day and pro rata = $5085.00
Example 7. Tanker charterparty.
An ASBATANKVOY charterparty, with modifications and rider clauses, provides for:
Cargo: Crude oil
Laytime for loading and discharging: 72 hours (3d 0h 0m)
Notice of Readiness and Laytime clause: “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 wham, 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 laytime”
Demurrage clause: Worldscale demurrage rate: US$23,500 daily
Vessel fixed at Worldscale 52.5
Statement of facts:
Vessel arrived at anchorage: 2100 hours on Tuesday 6 November
Notice of Readiness tendered: 2100 hours
Notice of Readiness accepted: 2100 hours
Time to count from: 0300 hours on Wednesday 7 November
Vessel berthed: 1100 hours on Monday 12 November
Hoses connected 1330 hours
Loading commenced: 1336 hours
Loading completed: 0530 hours on Tuesday 13 November
Hoses disconnected: 0900 hours
Vessel sailed: 0930 hours
Vessel arrived at discharging port: 0330 hours on Saturday 17 November
Notice of Readiness tendered: 0330 hours Notice of Readiness accepted 0330 hours
Vessel berthed: 0630 hours
Time to count from: 0630 hours
Hoses connected: 0840 hours
Discharging commenced: 1040 hours
Discharging completed: 1040 hours on Sunday 18 November
Hoses disconnected: 1130 hours
Vessel sailed: 1525 hours
Demurrage: 4d 08h 18m @ 52.5 percent of $23,500.00 per day and pro rata = $61,276.25
