OCTOBER 2013
Contents
NEWSLETTER Nº 3 Significant update to laytime definitions Pg. 1
BIMCO / FONASBA AMANAC 26th anniversary Pg. 2 LAYTIME DEFINITIONS UPDATE FONASBA President at Significant update to laytime definitions AMANAC Seminar Pg. 3
CAMAE promotes In order to eliminate uncertainties caused by laytime and demurrage definitions education Pg. 5 currently used in charter parties, different sectors of the shipping industry constituted a XIX Shipping Agents Annual working group in London composed of BIMCO, the Baltic Exchange, the Comité Congress Pg. 6 Maritime International (CMI) and the Federation of National Associations of 44th Fonasba Annual Shipbrokers and Agents (FONASBA). Meeting Pg. 8
The purpose of the Group was to update definitions of laytime, creating the Laytime Presentation FONASBA Handbook Pg. 9 Definitions of Charter Parties 2013, with the intention of overcoming the last update produced in 1993 known as the Voyage Charter Party Laytime Interpretation Rules FONASBA Press Release Pg. 11 (VOYLAYRULES). Laytime Definitions Pg. 13 The new document sets out the meaning of words, expressions and phrases commonly used in maritime practice based on the current state of English law.Thus, for example, Separate meanings have been given to the different formulations of phrases such as “Weather Working” day". It also includes new definitions, such as "Always Accessible " and "Whether in Port or Not". In addition, numerous references have been CIANAM clarified or updated. www.cianam.org The Laytime Definitions of Charter Parties 2013 should be considered a significant contribution that will promote mayor legal clarity. Returning to the original spirit of the first document of this kind, issued in 1980, it incorporates the legal and jurisprudential Secretary: contributions produced in this field and reflects the changes in contemporary market. Centro de Navegación The new document, published on page 11, together with explanatory notes are freely TE: (54 11) 4394-0520 available from the chartering section of the BIMCO website, Circular Nº 8, September 10, 2013. Copy of the FONASBA Press Release is also included. [email protected]
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Mexican Association of Shipping Agents AC (AMANAC) on their 26th Anniversary
With the participation of leading directors of the sector and within the framework of its 26th Anniversary, the Mexican Association of Shipping Agents AC (AMANAC) held a seminar on "The Fields of Action of the Participants in the Supply Chain". The welcoming was conducted by the President of AMANAC, Mr. Jose Cristian Lira Bennett and the General Manager, Miguel Angel Andrade, on behalf of the board management and shipping agents association’s members.
It was attended by Mr. Pedro Pablo Zepeda B. Director General of Merchant Marine, on behalf of Mr. Guillermo Ruiz de Teresa, Coordinator General of Merchant Marine, who said a few words as part of the opening ceremony, reiterating they were an authority that simplifies tasks and together with AMANAC, working to systematize all the processes corresponding to the Directorate General of Merchant Marine, thus allowing our economy to grow and the creation of jobs. He also said that "they are trying to complete by the first quarter of 2014, put 57 tasks online so you don’t have to go to the offices, wasting resources, time and effort in that task." He repeated that "Thanks to the effort of the private sector and the Government to work together, they will continue to facilitate private sector participation in ports, thus allowing investments to continue in the ports of Manzanillo, Veracruz, Altamira and Lazaro Cardenas as the four principal ports of the national transport system that will allow us to efficiently transport goods and form part of the efficient transport supply chains ".
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Following the program, after the opening ceremony, there was an exhibition of panelists, experts in subjects such as "The participation of Maritime Transport Agent", "The reason of the existencia of the broker", "Customs, Fiscal Control or Facilitation of International Trade", among others. The exhibition was held on the 51st floor of the Mayor Tower and ended with a concert by the orchestra of the Secretary of the Navy.
Congratulations to AMANAC for its XXVI anniversary. Source: Revista Panorama Marítimo y Portuario
Customs, Fiscal Control or Facilitation of International Trade. Port Terminals and Load Transfer Centers.Port Terminals and Luis Fernando Pérez Azcárraga, Senior Manager of Planning and Load Transfer Centers. Julio César Mejía Arce, Assistant Control Customs Strategic Coordination. and Management Support Customs Hutchinson Port Holdings.
The Role of the Automobile in Customer Service. Ontavilla Insurance Companies Leonardo Fantini, Regional Subscription Emilio Santamaria, vice president of the National Trucking Manager for Latin and Central America and the Caribbean - AIG (Canacar)
26th Anniversary Seminar of AMANAC Presentation of Mrs. Marygrace Collins, President of FONASBA
The presentation of Mrs. Marygrace Collins, president of FONASBA, took place in the Opening Ceremony of the Seminar. She talked about the most recent publication, the FONASBA Handbook, made in collaboration with the Centro de Navegación of Argentina, aiming to promote FONASBA’s activity and what it means to be a member of this organization, as well as to list their current members and the companies of the International Ship
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Brokers and Agents in membership of each association.
She also emphasized during her speech the importance of the shipping agent within the supply chain and promoted the need for highly trained agents with experience and knowledge of each of the ports worldwide. Mentions as a priority, the task of educating and training the members of FONASBA, referring to various training tools being developed as web pages which should be completed by the associations. Also comments that FONASBA wasn’t developing such courses unless its members asked them to do it.
Related articles:
Finances Certifications are encouraged at Ports in Mexico Read Article Organización Editorial Mexicana 23 de agosto de 2013
(AMANAC) PORTS SECTOR SEARCH TO INTEGRATE WITH EARTH SYSTEM 08 de Agosto de 2013 • 12:11hs Read Article
Easier online transactions at ports Read article 8 Agosto, 2013 - 12:27
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Cámara Marítima of Ecuador promotes education of professionals in the maritime industry
Recognizing that training is essential in a market as competitive as international trade, the Cámara Marítima of Ecuador through Camae Educational Foundation offers its members and other related companies, update seminars and lectures in order to help the professional growth of the employees of this industry.
The training plan meets the needs of the maritime and port sectors of this country, with highly experienced instructors who impart their knowledge on various topics of interest including, among others: English for foreign trade, customs rules, handling of containers, port management, supply chain logistics.
Additionally, for 3 consecutive years Camae has developed the specialized maritime port program - PEMP - which has had great success mainly among those who are starting in this business, because it contains several courses that together, are a solid foundation of new knowledge.
Camae committed to the dual training
The dual training system of German origin theory is based on "learning by practicing". It is a training method to form professionals that lasts for two or three years, based on the combination of practices in a sponsor company and theoretical instruction at a higher institute.
In Ecuador, it originated in 1989 - current German Higher Technological Institute and currently has dual careers in four universities.
In order to expand this system the Chambers of Industry and Commerce – Ecuador and German- in conjunction with the National Secretariat of Higher Education, Science, Technology and Innovation are creating SENESCYT - technical and technological careers in the field of port services, that’s why CAMAE, in an effort to support the professional development in this industry, is committed to participating in this initiative.
While the German model has served as a successful reference, the Chamber of Industry & Commerce of Ecuador - Germany is creating its own system for Ecuador, whose concept is based on the actual conditions of the country.
Linking the theoretical aspects given by professional training institutes with work experiences in the companies give the opportunity to gain experience in a real working environment, so Camae is promoting this issue in the industry through meetings, workshops, labor skills , etc.
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XIX Shipping Agents Annual Congress 2013 October 17 - 19, 2013
The Mexican Association of Shipping Agents B.C. (AMANAC) as part of its efforts to promote and study international maritime transport and trade, held its nineteenth annual meeting in Ensenada, Baja California, under the theme "Challenges and Initiatives in Mexican Ports". Traditionally, every year AMANAC organizes this great event, the most important one in this sector in Mexico, and this time focused on the administrative simplification measures that are being implemented in the ports to expedite the inspection process, registration and other processes related to the arrival of goods.
Representatives of important industries, public federal and state authorities, as well as senior executives from both national and foreign companies, representatives of Shipping Chambers and port communities gathered in Ensenada to investigate into issues that concern the activities of Maritime Transport, Ports, Trade and Tourism.
The Mayor Enrique Pelayo Torres participated in this national event and acknowledged the efforts of AMANAC to organize this event because in these encounters proposals, initiatives and maritime sector reforms are generated.
Enrique Pelayo Torres thanked Cristian Bennett Lira - President of AMANAC - for choosing Ensenada to host its annual conference in which congregates representatives of national and international companies operating in Mexican ports.
The Mayor stressed that these conferences are vital to analyze the challenges and initiatives arising from the current dynamics and requires active participation of all stakeholders in the shipping industry.
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"Ports are key platforms for important industries such as the chemical, petrochemical, electric power , metallurgy, mining, cement, fishing, sailing and cruise tourism, logistics and storage, to name a few" he said .
He emphasized the value of Mexican ports, as through them more than one third of the total load and most of the volume of exports are transported, including oil and its derivatives, noting that in the last 20 years the arrival of tourists and movement of containers has increased.
Meanwhile, Cristian Bennett Lira welcomed the companies that belong to AMANAC, pointing out that
this meeting is not just for shipping agents, as it searches all the maritime port and foreign trade sector of Mexico join the analysis and discussion of the reforms needed to improve this area.
The President of the AMANAC highlighted the benefits of Ensenada, "a beautiful tourist destination and pride of our industry." Finally gave a present Enrique Pelayo Torres.
On behalf of the State Governor José Guadalupe Osuna Millán, the Undersecretary of Tourism, Jose de Jesus Quinonez Ramirez formally inaugurated the Congress which concluded on Saturday October 19.
Related articles:
XIX Shipping Agents Annual Congress “Challenges and Initiatives in Mexican Read article Ports” XIX Shipping Agents Annual Congress 2013
Port of lázaro Cárdenas, participates in shipping agents national congress Read article
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44th Fonasba Annual Meeting Lima, 21 - 26 October 2013
With the presence of the President of FONASBA, Mrs. Marygrace Collins and representatives from 33 countries, the Annual Meeting of the Federation of National Association of Ship Brokers and Agents (FONASBA) was held in Lima between October 21 to 25 of this year. The event was organized by the Peruvian Association of Maritime Agents (APAM).
Mr. Javier Dulce, Fonasba Regional Vice President for the Americas and President of the Cámara Interamericana de Asociaciones de Agentes Marítimos (CIANAM) sends congratulations to our colleagues in the APAM, for their hard work, enthusiasm, excellent arrangements and warm hospitality extended to all those who had the opportunity to participate in it.
FONASBA's 2014 Annual Meeting will take place in Gothenburg on Monday 6th to Saturday 11th October 2014, hosted by the Swedish Shipbrokers' Association.
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Related article: There are new trends in the maritime sector
TRANSPORT & CARGO 30.10.13 | 00:00
The annual meeting of the Federation of National Associations of Ship Brokers and Agents, marked the future prospects of the activity. Read article
Presentation of FONASBA Handbook at Fonasba’s Annual Meeting in Lima
In February 2010, Patrick Campbell, by then vice president for the Americas of FONASBA, proposed to publish a book detailing the potential of the institution and its members. The format would be similar to River Plate Shipping Guide, a book that has been published every two years since 1932 in the Centro de Navigación in Argentina. The advertising and sale of the copies would not only solve the printing and distribution costs, but also profit FONASBA. The task wasn’t easy, since Argentina had to gather information of the history of FONASBA, and data of the maritime transport, foreign trade and port structure of its members spread over five continents. They also had to convince everyone about the benefits of advertising in this book. A working group was formed Immediately, integrated by Campbell, Javier Dulce (current Fonasba Regional Vice President for the Americas), Roberto Barrero, general manager of Centro de Navigación, Augustin Barletti, in charge of marketing and Andrew Armero of the layout. It’s coordinated from FONASBA’s headquarters in London by the entity's general manager, Jonathan Williams Fics, and in the United States by the president of FONASBA, Marygrace Collins.
The book was scheduled to be presented at the meeting of FONASBA in Lima. After being printed in Barcelona, the edition crossed the ocean and arrived in the Peruvian capital a few days before the
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event. The presentation was a success and the work received recognition from the global maritime community.
The FONASBA Handbook is now available for purchase by national associations. To simplify administrative tasks and to secure volume discounts and reduce transport costs, all orders should go via the associations to the editor ([email protected]). Following receipt of the order form, an invoice will be issued and the books despatched after receiving payment.
We include the letter from the President of FONASBA related to the sales of the Handbook.
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PRESS RELEASE BIMCO · FONASBA · CMI · THE BALTIC EXCHANGE
Significant update to laytime definitions
Uncertainties in laytime definitions currently used in charter parties have been addressed in the latest Laytime Definitions of Charter Parties 2013. Created by a shipping industry working group consisting of BIMCO, the Baltic Exchange, Comitė Maritime International (CMI) and the Federation of National Associations of Shipbrokers and Agents (FONASBA), the new document sets out statements of meaning of words and phrases commonly used in the context of laytime and reflects contemporary market understanding based on the current state of English law.
Separate meanings have been given to the different formulations of phrases such as “Weather Working” day, new definitions included covering “Always Accessible” and “Whether in Port or Not” while a number of other provisions have been updated or clarified.
The move is a significant one as it reinstates the original 1980 concept of definitions and reflects developments in case law and changes in commercial practice.
The definitions were last updated as the Voyage Charter Party Laytime Interpretation Rules (Voylayrules) in 1993.
Copies of the Laytime Definitions of Charter Parties 2013 together with explanatory notes are freely available from the chartering section of www.bimco.org.
Chairman of the Working Group, Jean-Pierre Laffaye (BIMCO) said:
“These provisions bring much needed clarity to the shipping markets and iron out a good deal of uncertainty. In a tough market, the amount of time a vessel spends unloading or loading cargo is under great scrutiny and it is therefore vital that imprecise laytime definitions and subtleties of interpretation do not provide grounds for expensive legal disputes when an interpretation is tested in the courts.”
Similar sentiments were echoed by Mrs Marygrace Collins (FONASBA) and Baltic Exchange director Colm Nolan. On behalf of CMI, Stig Gregersen commented that the new Definitions represented an important step forward in helping to remove some of the legal uncertainty associated with this area of the law.
The Baltic Exchange will be incorporating the new definitions into its code of conduct, the Baltic Code and definitions are now available for incorporation into charter parties or used as an agreed reference during dispute resolution. They can also be used as an educational resource.
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About BIMCO:
BIMCO is a shipping association providing a wide range of services to its global membership of stakeholders who have vested interests in the shipping industry, including shipowners, operators, managers, brokers and agents.
The association’s main objective is to facilitate the commercial operations of its membership by means of developing standard contracts and clauses, and providing quality information, advice, and education.
BIMCO promotes fair business practices, free trade and open access to markets and is a strong advocate for the harmonisation and standardisation of all shipping related activity.
Accredited as a Non-Governmental Organisation (NGO) with all relevant United Nations agencies and other regulatory entities, BIMCO actively promotes the application of international agreed regulatory instruments. www.bimco.org
About: The Baltic Exchange
The Baltic Exchange is the world's only independent source of maritime market information for the trading and settlement of physical and derivative contracts. Its international community of over 600 members encompasses the majority of world shipping interests and commits to a code of business conduct overseen by the Baltic.
Baltic Exchange members are responsible for a large proportion of all dry cargo and tanker fixtures as well as the sale and purchase of merchant vessels. www.balticexchange.com
About: Comite Maritime International (CMI)
CMI, Comité Maritime International, is a non-governmental, non-profit organisation which was established in Antwerp in 1897. Its objective is to contribute by all appropriate means and activities to the unification of maritime law in all its aspects. Membership comprises national maritime law associations in some 50 countries which in turn are made up of 11,000 members, mostly lawyers.
The CMI attempts to bring the synergy of maritime law and industry to the treaty-making table. It has produced the initial drafts of most of the existing private maritime law conventions, continues its direct responsibility for the York-Antwerp Rules and produces guidelines and model laws as part of its work in promoting the unification of maritime law. www.comitemaritime.org
About: FONASBA
FONASBA is the only organisation representing the global ship agency and ship broking professions. Established in 1969 it now has members in 50 countries, including all major maritime and trading nations. Its remit is to “promote and protect the professions of ship agency and ship broking worldwide”, a task which it undertakes through dialogue with its member associations and its consultative status with IMO, UNCTAD, UNCITRAL and the World Customs Organisation, as well with the European Commission and other regional bodies. FONASBA also enjoys reciprocal memberships with the Baltic Exchange, BIMCO, INTERTANKO, indemnity insurer ITIC and the Shipbrokers’
Register and works closely with all other maritime sector bodies, both internationally and in Europe. www.fonasba.com CIANAM www.cianam.org
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Laytime Definitions for Charter Parties 2013
Introduction
Laytime and demurrage are fundamental to tramp shipping. Specialist terms which have evolved over the years have been extensively analysed by legal commentators and frequently tested in the courts. This has resulted in subtle distinctions where a choice of term or use of language can advance or delay the commencement of laytime and mean the difference between demurrage starting on Friday afternoon or the following Monday morning.
The Laytime Definitions for Charter Parties 2013 (Laytime Definitions), copy attached, have been developed to provide practitioners with a set of meanings of commonly-used words and phrases. The objective is to help reduce disputes about party intentions in a market where fixtures are often concluded on the basis of a recap message and listed amendments, without the exchange or return of draft contracts. The Laytime Definitions are available for incorporation into charter parties or possibly used as an agreed reference for dispute resolution. In addition, they can be used as an educational resource to assist industry entrants and others wishing to develop an understanding of the contractual and legal complexities surrounding laytime and demurrage.
Background
In 1976, the Comité Maritime International (CMI), the private international organisation for maritime legal interests, began work on a project to reduce charter party disputes by developing definitions of commonly- used terms, starting with laytime provisions. A Working Group comprising representatives from BIMCO, CMI, the UK Chamber of Shipping and FONASBA, developed the Charter Party Laytime Definitions 1980. However, the Definitions failed to attract support and were rarely incorporated into charter parties. In response to a highly critical report about contractual arrangements in the shipping industry issued by the United Nations Commission on Trade and Development (UNCTAD) in 1990, the Definitions were revised and issued as the Voyage Charter Party Laytime Interpretation Rules (Voylayrules) 1993.
In the twenty years since the publication of Voylayrules, significant developments and changes have taken place in case law and commercial practice. A review was therefore put in hand to determine whether the content remained relevant together with the need for any changes, including new or additional provisions, required to meet contemporary trading arrangements. Detailed work was undertaken by representatives from the original sponsoring organisations together with a participant from the Baltic Exchange:
Mr Jean-Pierre Laffaye, BIMCO (Chairman) Mrs Marygrace Collins, FONASBA Mr Stig Gregersen, CMI Mr Colm Nolan, Baltic Exchange
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The resulting Laytime Definitions for Charter Parties 2013 were adopted by BIMCO at the Documentary Committee in Paris in May 2013 and have been similarly endorsed by each of the sponsoring organisations. Accordingly, the provisions are issued as a joint document.
Content (a) Principles
The Laytime Definitions have been restored to the original 1980 concept and developed as definitions. This is an important change from Voylayrules 1993 which were issued as a selfstanding code of rules and differed in a number of significant respects from generally accepted principles and practice such as the decision to combine three variations of “Weather Working “ day into a single Rule.
The sponsoring organisations agreed that the previous radical approach had been a factor contributing to the limited use of Voylayrules and that a fresh approach was required in the development of updated provisions which would be used in the markets. It was therefore agreed to revert to definitions, setting out statements of meaning, and that the content should reflect contemporary market needs based on the current state of English law. As a result substantive and editorial amendments have been made to a number of the Voylayrules provisions, separate explanations given once again to different forms of “Weather Working” day and new definitions introduced including “Always Accessible” and “Whether in Port or Not”.
The term “Strike”, which was introduced in Voylayrules, has been deleted because the scope and effects are often given their own meaning in the underlying charter party. The term “In Writing” has been removed as unnecessary given that many, particularly BIMCO, charter parties include a clause covering the issue.
The use of abbreviations has, for the most part, been avoided. In many cases, there is no generally accepted meaning and while parties may understand their own exchanges, abbreviations and acronyms can be capable of more than one interpretation. The Laytime Definitions use abbreviations only in respect of Whether in Berth or Not (WIBON) and Whether in Port or Not (WIPON) which are widely understood.
Commentary
The following notes comment on the updated provisions and highlight changes from or amendments to Voylayrules 1993.
Preamble
The provisions relate only to laytime and demurrage issues and apply when any or all are expressly incorporated into a charter party or other contract of affreightment. It is for parties to determine the scope of application either limited to certain agreed and identified provisions or by incorporation in extenso.
List of Definitions
1. PORT has been amended to reflect the wider concept of port area explained in The Johanna Oldendorff (1973) with reference now made to “places outside the legal, fiscal or administrative area”. The term “offshore facilities” has been added to the illustrative, but non-exhaustive, list of cargo handling areas. 2. BERTH consistent with the amendment to PORT, the restrictive reference to “place within a port” has been replaced by an open-ended list of cargo handling locations. 3. REACHABLE ON ARRIVAL this term has been the subject of considerable litigation over the years. The revised text is based on the current position that delay due to bad weather or congestion or both is a
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breach of charterers’ obligations. The potentially disputatious qualification “in the absence of an abnormal occurrence”, included in Voylayrules, has been deleted. 4. ALWAYS ACCESSIBLE the provision has been treated by the authorities as synonymous with “Reachable on Arrival” in the context of getting into a berth but the position on departure has been less clear. The term has therefore been set out separately with the second sentence covering the position on departure requiring charterers to enable the vessel to leave safely and without delay. 5. LAYTIME this is unchanged. 6. PER HATCH PER DAY and 7. PER WORKING HATCH PER DAY or PER WORKABLE HATCH PER DAY Laytime counting by reference to hatch calculations continues to be used, albeit to a limited extent, in some parts of the world. The provisions have been retained unchanged. 8. DAY in contrast to Definitions No 9 and 10, an unqualified DAY is now described as a period of twenty- four consecutive hours. 9. CALENDAR DAY is new and covers a period of twenty-four consecutive hours running from 0000 to 2400 hours. 10. CONVENTIONAL DAY is new and has been included in recognition of the fact that a period of twenty- four hours in relation to laytime counting is likely to start at any point during a Calendar Day. 11. WORKING DAY the meaning has been brought into line with English law. 12. RUNNING DAYS or CONSECUTIVE DAYS the provision is unchanged. 13. RUNNING HOURS or CONSECUTIVE HOURS this is new and reflects practical usage, particularly in tanker charter parties. 14. HOLIDAY this is the (unchanged) mirror image of Definition No 11 WORKING DAY. 15-18 WEATHER WORKING in contrast to the single provision in Voylayrules covering three alternative forms of Weather Working provisions, separate meanings have been restored in line with English law decisions. 15. WEATHER WORKING DAY deductions for bad weather are calculated by reference to the length an interruption during a vessel’s normal (or notional if waiting on turn) working hours bears to a period of 24 hours. Thus, a two hour stoppage during an eight hour working day is pro-rated to six hours (or four hours in the case of a twelve hour working day) and the time then added to the end of laytime. No deductions are made for rain occurring outside normal working hours. 16. WEATHER WORKING DAY OF 24 CONSECUTIVE HOURS the actual duration of an interruption for bad weather at any time on a working day during or outside normal working hours and including periods on turn, is added to the end of laytime. 17. WEATHER WORKING DAY OF 24 HOURS this is an artificial day made up of twenty-four working hours. An eight hour working day is equal to three calendar days’ laytime but with laytime suspended for stoppages due to bad weather in working hours or in working hours when work was contemplated. 18. (WORKING DAY) WEATHER PERMITTING this has the same meaning and interpretation as Definition No 16 Weather Working Day of 24 Consecutive Hours. 19. EXCEPTED or EXCLUDED the content is unchanged 20. UNLESS SOONER COMMENCED has the effect of bringing forward the commencement of laytime if work begins prior to the contractual start of laytime.
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21. UNLESS SOONER COMMENCED, IN WHICH CASE ACTUAL TIME USED TO COUNT the commencement of laytime remains in accordance with charter party provisions but time actually used in any prior period will count against laytime. 22. UNLESS USED time used during excepted periods is set against laytime. 23. TO AVERAGE LAYTIME the provision is unchanged. 24. REVERSIBLE LAYTIME the provision is unchanged. Reversibility applies between loading ports and discharging ports but not between loading ports or between discharging ports. 25. NOTICE OF READINESS this is unchanged. 26. TIME LOST WAITING FOR BERTH TO COUNT AS LOADING OR DISCHARGING TIME or AS LAYTIME the basis is unchanged in principle, subject to minor editorial improvements. Where a vessel is unable to berth but cannot tender Notice of Readiness at a waiting place, time lost will count against laytime or, on expiry, as demurrage. Once a berth is available, laytime or demurrage ceases to count until the vessel is at a place where Notice of Readiness can be given and resumes in accordance with charter party provisions. 27. WHETHER IN BERTH OR NOT (WIBON) or BERTH OR NO BERTH relates to delays due to congestion (but not on account of weather). A change has been made. Under Voylayrules, laytime or demurrage ceased once a berth became available and would not resume until the vessel was at the berth. This meant that the owner would have to bear the risk of any intervening delay, even if not otherwise contractually responsible. An adjustment has therefore been made so that time will always run in accordance with the underlying charter party provisions. 28. WHETHER IN PORT OR NOT (WIPON) this is new. It will enable an owner to give Notice of Readiness from any recognised waiting place “off the Port” if unable to proceed to the usual waiting place. 29. VESSEL BEING IN FREE PRATIQUE has been amended to address the position in Voylayrules potentially restricting time counting arrangements and possibly conflicting with underlying charter party terms. The content has been streamlined with the reference to Custom House entry removed as formalities vary considerably from one state to another. The provision now relates only to compliance with port health requirements. 30. DEMURRAGE in order to avoid conflict with the position in many charter parties, the Voylayrules provision that “Demurrage shall not be subject to laytime exceptions” has been qualified by “unless specifically stated in the Charter Party”. 31. DESPATCH MONEY or DESPATCH this is unchanged. 32. DESPATCH ON ALL WORKING TIME SAVED or ON ALL LAYTIME SAVED this is unchanged. 33. DESPATCH ON ALL TIME SAVED this is unchanged.
Recommended methods of incorporation
As explained above, the provisions have been developed for incorporation into charter parties. There are several possible means of achieving this objective depending on the type of contractual arrangements (for example single or consecutive voyage charters or a contract of affreightment) and whether the intention is to apply the provisions in full or only those selected by the parties. While other methods might be equally effective, the following alternatives are suggested:
(i) clause for incorporation by reference: “The Laytime Definitions for Charter Parties 2013 (Laytime Definitions) are incorporated into this contract in full. In the event of any conflict between this contract and the Laytime Definitions, the provisions of the Laytime Definitions shall prevail to the extent of such conflict.” CIANAM www.cianam.org
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If it is agreed to incorporate only certain of the Definitions, the text can be modified to read: “Definition Numbers [identify selected provisions] in the Laytime Definitions for Charter Parties 2013 (Laytime Definitions) are incorporated into this contract. In the event of any conflict between this contract and the Laytime Definitions, the provisions of the Laytime Definitions shall prevail to the extent of such conflict.”
(ii) incorporation using a “cut and paste” addendum setting out the full text of all or of those selected Definitions which the parties have agreed to apply. The incorporation clause should clearly state that the agreed Laytime Definitions prevail in the event of any conflict with the underlying charter party provisions.
(iii) application to individual words or phrases in the body of the charter party where the intention is to remove any doubt about the parties’ intended interpretation of one or more specific terms. In such event, the text of the relevant Laytime Definition(s) can be inserted as the agreed meaning.
The full text of the Laytime Definitions for Charter Parties 2013 is available to download free of charge from the Chartering/Clauses section of the BIMCO website (www.bimco.org) and is also set out below:
LAYTIME DEFINITIONS FOR CHARTER PARTIES 2013
PREAMBLE Words, phrases, acronyms and abbreviations (“Words and Phrases”) used in a Charter Party shall be defined, for the purposes of Laytime only, in accordance with the corresponding Words and Phrases set out below, when any or all such definitions are expressly incorporated into the Charter Party.
"Charter Party" shall include any form of contract of carriage or affreightment including contracts evidenced by bills of lading.
Singular/Plural The singular includes the plural and vice versa as the context admits or requires.
List of Definitions
1. PORT shall mean any area where vessels load or discharge cargo and shall include, but not be limited to, berths, wharves, anchorages, buoys and offshore facilities as well as places outside the legal, fiscal or administrative area where vessels are ordered to wait for their turn no matter the distance from that area.
2. BERTH shall mean the specific place where the Vessel is to load or discharge and shall include, but not be limited to, any wharf, anchorage, offshore facility or other location used for that purpose.
3. REACHABLE ON ARRIVAL shall mean that the charterer undertakes that an available loading or discharging Berth be provided to the Vessel on arrival at the Port which the
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Vessel can reach safely without delay.
4. ALWAYS ACCESSIBLE shall mean that the charterer undertakes that an available loading or discharging Berth be provided to the Vessel on arrival at the Port which the Vessel can reach safely without delay. The charterer additionally undertakes that the Vessel will be able to depart safely from the Berth and without delay at any time before, during or on completion of loading or discharging.
5. LAYTIME shall mean the period of time agreed between the parties during which the owner will make and keep the Vessel available for loading or discharging without payment additional to the freight.
6. PER HATCH PER DAY shall mean that the Laytime is to be calculated by dividing the quantity of cargo by the result of multiplying the agreed daily rate per hatch by the number of the Vessel’s hatches. Thus:
Quantity of cargo Laytime = = Days Daily rate x Number of hatches
Each pair of parallel twin hatches shall count as one hatch. Nevertheless, a hatch that is capable of being worked by two gangs simultaneously shall be counted as two hatches.
7. PER WORKING HATCH PER DAY or PER WORKABLE HATCH PER DAY shall mean that the Laytime is to be calculated by dividing the quantity of cargo in the hold with the largest quantity by the result of multiplying the agreed daily rate per working or workable hatch by the number of hatches serving that hold. Thus:
Largest quantity in one hold Laytime = = Days Daily rate per hatch x Number of hatches serving that hold
Each pair of parallel twin hatches shall count as one hatch. Nevertheless, a hatch that is capable of being worked by two gangs simultaneously shall be counted as two hatches.
8. DAY shall mean a period of twenty-four (24) consecutive hours. Any part of a Day shall be counted pro rata.
9. CALENDAR DAY shall mean a period of twenty-four (24) consecutive hours running from 0000 hours to 2400 hours. Any part of a Calendar Day shall be counted pro rata.
10. CONVENTIONAL DAY shall mean a period of twenty-four (24) consecutive hours running from any identified time. Any part of a Conventional Day shall be counted pro rata.
11. WORKING DAY shall mean a Day when by local law or practice work is normally carried out.
12. RUNNING DAYS or CONSECUTIVE DAYS shall mean Days which follow one immediately after the other.
13. RUNNING HOURS or CONSECUTIVE HOURS shall mean hours which follow one immediately after the other.
14. HOLIDAY shall mean a Day other than the normal weekly Day(s) of rest, or part thereof, when by local law or practice work during what would otherwise be ordinary working hours is not normally carried out.
15. WEATHER WORKING DAY shall mean a Working Day or part of a Working Day during
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which it is or, if the Vessel is still waiting for her turn, it would be possible to load/discharge the cargo without interruption due to the weather. If such interruption occurs (or would have occurred if work had been in progress), there shall be excluded from the Laytime a period calculated by reference to the ratio which the duration of the interruption bears to the time which would have or could have been worked but for the interruption.
16. WEATHER WORKING DAY OF 24 CONSECUTIVE HOURS shall mean a Working Day or part of a Working Day of 24 consecutive hours during which it is or, if the vessel is still waiting for her turn, it would be possible to load/discharge the cargo without interruption due to the weather. If such interruption occurs (or would have occurred if work had been in progress) there shall be excluded from the Laytime the period during which the weather interrupted or would have interrupted work.
17. WEATHER WORKING DAY OF 24 HOURS shall mean a period of 24 hours made up of one or more Working Days during which it is or, if the Vessel is still waiting for her turn, it would be possible to load/discharge the cargo without interruption due to the weather. If such interruption occurs (or would have occurred if work had been in progress), there shall be excluded from Laytime the actual period of such interruption.
18. (WORKING DAY) WEATHER PERMITTING shall have the same meaning as WEATHER WORKING DAY OF 24 CONSECUTIVE HOURS.
19. EXCEPTED or EXCLUDED shall mean that the Days specified do not count as Laytime even if loading or discharging is carried out on them.
20. UNLESS SOONER COMMENCED shall mean that if turn-time has not expired but loading or discharging is carried out, Laytime shall commence.
21. UNLESS SOONER COMMENCED, IN WHICH CASE ACTUAL TIME USED TO COUNT shall mean that actual time used during turn-time shall count as Laytime.
22. UNLESS USED shall mean that if Laytime has commenced but loading or discharging is carried out during excepted periods, actual time used shall count as Laytime.
23. TO AVERAGE LAYTIME shall mean that separate calculations are to be made for loading and discharging and that any time saved in one operation is to be set off against any excess time used in the other.
24. REVERSIBLE LAYTIME shall mean an option given to the charterer to add together the time allowed for loading and discharging. Where the option is exercised the effect is the same as a total time being specified to cover both operations.
25. NOTICE OF READINESS shall mean the notice to the charterer, shipper, receiver or other person as required by the CharterParty that the Vessel has arrived at the Port or Berth, as the case may be, and is ready to load or discharge.
26. TIME LOST WAITING FOR BERTH TO COUNT AS LOADING OR DISCHARGING TIME or AS LAYTIME shall mean that if no loading or discharging Berth is available and the Vessel is unable to tender Notice of Readiness at the waiting-place then any time lost to the Vessel is counted as if Laytime were running, or as time on Demurrage if Laytime has expired. Such time ceases to count once the Berth becomes available. When the Vessel reaches a place where she is able to tender Notice of Readiness, Laytime or time on Demurrage resumes after such tender and, in respect of Laytime, on expiry of any notice time provided in the CharterParty.
27. WHETHER IN BERTH OR NOT (WIBON) or BERTH OR NO BERTH shall mean that if the designated loading or discharging Berth is not available on arrival, the Vessel on reaching any usual waiting place at the Port, shall be entitled to tender Notice of Readiness from it and Laytime shall commence in accordance with the Charter Party.
28. WHETHER IN PORT OR NOT (WIPON) shall mean that if the designated loading or
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discharging Berth and the usual waiting place at the Port are not available on arrival, the Vessel shall be entitled to tender Notice of Readiness from any recognised waiting place off the Port and Laytime shall commence in accordance with the Charter Party.
29. VESSEL BEING IN FREE PRATIQUE shall mean that the Vessel complies with port health requirements.
30. DEMURRAGE shall mean an agreed amount payable to the owner in respect of delay to the Vessel once the Laytime has expired, for which the owner is not responsible. Demurrage shall not be subject to exceptions which apply to Laytime unless specifically stated in the Charter Party.
31. DESPATCH MONEY or DESPATCH shall mean an agreed amount payable by the owner if the Vessel completes loading or discharging before the Laytime has expired.
32. DESPATCH ON ALL WORKING TIME SAVED or ON ALL LAYTIME SAVED shall mean that Despatch Money shall be payable for the time from the completion of loading or discharging until the expiry of the Laytime excluding any periods excepted from the Laytime.
33. DESPATCH ON ALL TIME SAVED shall mean that Despatch Money shall be payable for the time from the completion of loading or discharging to the expiry of the Laytime including periods excepted from the Laytime.
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