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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Further, comemncement was made clear in the leading authority of the “MEXICO I” [] described belowif the statements were untrue when they were made, the notice does not subsequently become valid when the circumstances change. When a vessel is delayed from getting into berth after giving notice of readiness for any reason over which the charterer has no control, such delay shall not count as used lay time. It does, however, allow the charterer to totally change the agreed voyage at any stage en route.

The charterparty will often specify the means i. These concern the arrival and readiness of the vessel and the tender of the Notice of Readiness “NOR”. Laytime will not begin immediately upon the tendering of notice of readiness. In the course coommencement his judgment, however, Bowen LJ dealt with the exercise of an option by a charterer to nominate a berth, dock or port saying: Their limits and bounds are necessarily defined by the authority which creates them, and the area embraced within those limits constitutes the port.

These have assisted in the development and clarification of this area of the law. This may make good sense but it was not what the charter states. Subject to strike and lockout clause. Do you have a Question or Comment? This exception only applies to cases where a berth is not available due to congestion and not to cases where a berth is available but is unreachable for other reasons such as bad weather. As a rule of thumb and subject to the terms of the particular charterparty customs clearance and health clearance for the crew will not generally be needed to be granted before this requirement is satisfied, provided that it is a “mere formality” and the Master has no reason to suspect that either will not be given by the port authorities.

Commencement of laytime: common pitfalls and errors : Clyde & Co (en)

Therefore, when you are trying to define the port with regard to which persons who enter into a charterparty are contracting, you endeavour to find words which will shut out those things which you know they do not intend. In the Court of Appeal, Sir John Donaldson distinguished the Reardon Smith case 12 and a case he called the Olivebank case, 13 where charterers had nominated a Danish port that the commendement concerned was unable to enter owing to a prohibition by the British Government applied during the Comencement World War, saying: If Porto Torres had become an effective port of discharge since the vessel had tendered notice of readiness, then the effect of the order was that the charterers changed their nomination so that Porto Torres became the first port of discharge and Genoa the second.


In general terms, there are three conditions which need to be satisfied under most charterparties before laytime can commence. Therefore, under a berth charter, the risk of congestion or other delays in berthing is generally allocated to the shipowner rather than the charterer.

Commencement of Laytime

The commecement of laytime is commfncement connected with the service of NOR. Only gold members can continue reading. There was no requirement that the port nominated be a safe one. If you have any question you can ask below or enter what you are looking for! Commencemetn has been heated and passionate debate in academic circles and industry publications about the pros and cons of the Rotterdam Rules.

The charterers argued that since the notices were tendered outside the specified period they were non-contractual being in breach of the relevant clause and therefore invalid and of no effect in accordance with the principles in the “MEXICO I”. The ship must be legally and physically an arrived ship, the master must have tendered notice of readiness that must be true and valid, and thus the ship must have passed customs and health authority inspections.

If therefore, there is any doubt as to the validity of the notice, it is always advisable for the master to tender a further notice. Had The Laytime Definitions for Commenfement definition been applied, this decision would presumably have gone the other way. Beaufort wind scale Force 3. In the High Court, the judge agreed with the Charterers laytiime their emails of 6 and 7 January constituted neither explicit nor implicit consent to the commencement of laytime, but only to the early service of the NOR and that charterers wanted the vessel to berth and commence loading early.

This may commenement 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. It has long been held in cases such as the Mexico 1 1 LLR and the Agamemnon 1 Laytims that an invalid Notice of Readiness would not take effect when given or later, when the vessel was arrived and ready.

The question of whether the vessel is an “arrived” one for the purposes of commencement of laytime has been the subject of much discussion and case law which is outside the scope of this article.

It was not until two days later however that the vessel arrived at Baton Rouge general anchorage but, due to the designated berth being unavailable, loading did not commence until later the following day. For example the Asbatankvoy form provides for notice by ” letter, telegraph, wireless or telephone “.


If 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. The most that can be said is that the charterer does not exercise commdncement option at all unless he chooses a berth that is free or is likely to be so in commenncement reasonable time.

Until then no obligation could lie upon the charterer to load the cargo, or to receive it, as the case might be. commehcement

For commercial reasons it is often in owners’ interests to get the laytime clock started as early as possible after reaching destination. September PDF Version. They did, however, hold that the owners were not to be denied their remedy because they had complied with the orders.

Lord Reid put it this way: What general precautions should be taken against stowaways boarding in port? In The Adolf Leonhardt67 Staughton J, as he then was, was prepared to hold that notice of readiness could be given at Intersection, which is a common waiting area for all the up river ports, but that was on the basis of a WIPON provision in the charter.

Insight & Knowledge

Click here to register your Interest. Before a vessel can start work there are a number of documentary laytme which are owners responsibility including customs clearance, crew clearance and checks on stability. For laytime to start under a voyage charterparty, four requirements must be met: To be valid, the vessel must be at the agreed destination and be ready to commence cargo operations within the charterparty definitions, when the Notice of Readiness is given.

The vessel therefore arrives in berth when the normal mooring lines are secured. He referred to the words of Potter LJ in “The Happy Ranger” “The commercial context and the purpose of the contractual requirement to serve NOR which is to trigger the Charterers’ obligation to unload whereby laytime starts to run immediately in the absence of express provision…” The sole and dominant purpose of NOR is to tender the vessel for loading or discharge and thus to act as commfncement trigger for the commencement of laytime.

The practical effect of a non-contractual notice which is tendered outside the required time is, that while it may not be effective to start the laytime clock running, the defect may be “cured” by, for example, the passage of time and laytime will start at that point.