In theory, the determination of laytime and demurrage in tankers, if incurred, is a straightforward process as all of the relevant terms and clauses are contained in the charter party. However, as anyone who has examined a charter party will be only too well aware the wording is often less than clear and consequently the meaning is obscure. In short, lack of clarity over what does and does not count as used laytime can lead to contentious issues between parties. One of two things then happens. Either, a claim is made which potentially can require substantial resources to pursue, both in terms of time and money. Alternatively, potential claims are left to accumulate, unattended and considerable sums of money go begging.
What Will You Learn?
The aim is to provide practical understanding and instruction in the complexities of laytime and demurrage and in so doing, de-mystify them. Emphasis is placed on how to avoid potential problems from the outset, how to limit risk and exposure and ultimately save money through the efficient handling of claims and avoidance of costly legal proceedings. The course highlights differences between major charter parties and the problems encountered between shipping and oil sales contracts.
Delegates encouraged to attend include executives from oil, gas, chemicals and shipping companies handling demurrage claims, commercial operations people, traders, and charterers.
Participants are given details of a spot fixture, a copy of the charter party and a statement of facts relating to the voyage performed. They are asked to calculate the amount of laytime used, the amount of demurrage due, if any, and then to argue their cases in a mock arbitration.
Delegates undertake an exercise in which they are asked to compare the ways in which three different charter parties treat various events in a tanker's voyage.