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Laytime and Demurrage Sixth Edition

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Laytime and Demurrage Sixth Edition LAYTIME AND DEMURRAGE SIXTH EDITION LLOYD’S SHIPPING LAW LIBRARY Series editors: Andrew W. Baker, Q.C. and Hatty Sumption LLOYD’S SHIPPING LAW LIBRARY The Ratification of Maritime Conventions Voyage Charters edited by The Institute of Maritime Law third edition University of Southampton by Julian Cooke, (looseleaf) Timothy Young, Q.C., Andrew Taylor, John D. Kimball, David Martowski The Law of Ship Mortgages and LeRoy Lambert by Graeme Bowtle and Kevin McGuinness (2007) (2001) Time Charters sixth edition The Law of Shipbuilding Contracts by Terrence Coghlin, Andrew W. Baker, third edition Julian Kenny and John D. Kimball by Simon Curtis (2008) (2002) Ship Sale & Purchase The Law of Tug and Tow fifth edition second edition by Iain Goldrein, Q.C., Matt Hannaford by Simon Rainey and Paul Turner (2002) (2008) Shipping and the Environment Merchant Shipping Legislation second edition second edition by Colin de la Rue and by Aengus R. M. Fogarty Charles B. Anderson (2004) (2009) Ship Registration: Law and Practice Marine War Risks second edition third edition by Richard Coles and by Michael D. Miller Edward Watt (2005) (2009) Bareboat Charters Marine Cargo Insurance second edition by John Dunt by Mark Davis (2009) (2005) London Maritime Arbitration third edition Limitation of Liability by Clare Ambrose and Karen Maxwell for Maritime Claims (2009) fourth edition by Patrick Griggs, Richard Williams P&I Clubs Law and Prace and Jeremy Farr fourth edition (2005) by Steven J. Hazelwood and David Semark (2010) Enforcement of Maritime Claims fourth edition Admiralty Jurisdiction and Practice by D. C. Jackson fourth edition (2005) by Nigel Meeson and John A. Kimbell (2011) Bills of Lading Berlingieri on Arrest of Ships by Richard Aikens, Richard Lord fifth edition and Michael Bools by Francesco Berlingieri (2006) (2011) LAYTIME AND DEMURRAGE BY JOHN SCHOFIELD, M.A. of Gray’s Inn, Barrister SIXTH EDITION First published 2009 by Informa Law & Finance Published 2013 by Informa Law from Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN 711 Third Avenue, New York, NY, 10017, USA Informa Law is an imprint of the Taylor & Francis Group, an informa business Copyright © John Schofield 1986, 1990, 1996, 2000, 2005, 2011 First edition, 1986 Second edition, 1990 Third edition, 1996 Fourth edition, 2000 Fifth edition, 2005 Sixth edition, 2011 All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Product or corporate names may be trademarks or registered trademarks and are used only for identification and explanation without intent to infringe. Reprinted material is quoted with permission. Whilst every effort has been made to ensure that the information contained in this work is correct, neither the authors nor Informa Law from Routledge can accept any responsibility for any errors or omissions or for any consequences arising therefrom. Product or corporate names may be trademarks or registered trademarks and are used only for identification and explanation without intent to infringe. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN: 978-1-84311-945-6 (hbk) Lloyd’s is the registered trade mark of the Society incorporated by the Lloyd’s Act 1871by the name of Lloyd’s. Text set 10 on 12pt Times by Interactive Sciences Ltd, Gloucester To V.G.S. L.J.S. C.G.S. This page intentionally left blank Preface to the Sixth Edition Publication of the sixth edition is also the twenty-fifth anniversary of the publication of the first edition in 1986. The law relating to laytime and demurrage is a creation of the English common law arising from judicial decisions going back more than 200 years. The earliest case in the present edition is Wolff v. Hardcastle (1798) 1 B&P 316, a case in the section on liability for demurrage dealing with the description of a cargo consignee. The most recent is The Vine [2011] 1 Lloyd’s Rep 301, a decision from part 6 of the first volume of Lloyd’s Law Reports published on 18 March 2011, relating to a delay getting into berth. Since publication of the first edition of Laytime and Demurrage, some 300 new judicial and arbitral decisions have been added. This new edition on its own adds well over 40 such decisions. The format of the book follows that adopted in previous editions. There is an important new section at the end of the first chapter tracing recent judicial thinking in relation to the construction of contractual terms, including charterparty laytime clauses, much of it led by Lord Hoffmann. It is worth at this time looking back, however, at some import milestones. The first edition of this book was the first major maritime law text book to include reports of London maritime arbitrations, brief anonymous reports of which have been published in Lloyd’s Maritime Law Newsletter since that publication started its fortnightly publication in 1979. The second edition joined the third edition of Time Charters to form the foundation of the popular Lloyd’s Shipping Law Library of text books. The third edition was the first major maritime law textbook to be translated into Chinese. In the preface to the fifth edition, I highlighted three areas of the law, which I hoped would receive further judicial consideration. Unfortunately none of these areas of the law have yet to come before the courts. I can therefore only hope that this will happen before publication of the seventh edition. The law is stated as at 1 April 2011. London JOHN SCHOFIELD April 2011 vii This page intentionally left blank Contents PAGE Preface to the Sixth Edition vii Table of Cases xvii Table of Statutes xxxix PARA CHAPTER 1. GENERAL PRINCIPLES 1.1 The construction of laytime clauses 1.38 CHAPTER 2. LAYTIME CLAUSES—FIXED AND CUSTOMARY LAYTIME 2.1 FIXED LAYTIME 2.1 Calendar days 2.6 Conventional days 2.14 Running days 2.17 Working days 2.23 Weather working days 2.41 Calculation of weather interruptions in weather working days 2.59 Saturdays and other incomplete days 2.80 Voylayrules 1993 2.91 Working days, running hours, running days, weather permitting 2.92 Working hours, working days of 24 hours, weather permitting 2.112 Working hours per working day 2.126 Working days of 24 consecutive hours, working days of 24 running hours, weather permitting 2.133 Weather working day of 24 consecutive hours 2.140 LAYTIME BY REFERENCE TO RATES OF WORKING CARGO 2.144 Rate per working hatch (or available workable hatch) 2.145 Availability of holds 2.163 Rate per hatch 2.164 Rate per hook 2.173 Laytime expressed as a total daily rate 2.177 Laytime expressed as a total daily rate basis—a specified number of available workable hatches 2.193 ix x CONTENTS CUSTOMARY LAYTIME 2.207 What is a reasonable time? 2.209 Customary despatch 2.219 Effect of custom 2.220 Commencement of the obligation to load/discharge 2.229 Delays due to charterers/shippers/receivers 2.239 Failure to provide a berth on arrival 2.240 Failure to have a cargo in readiness 2.244 As fast as the vessel could deliver 2.249 Alternative methods of discharge 2.250 Provision of defective cargo 2.253 Delays arising without the default of either shipowners or charterers 2.258 Congestion 2.259 Strikes 2.262 Actions of port and other authorities 2.268 Delay due to other third parties 2.273 Weather and other natural phenomena 2.275 Other terms of the charterparty 2.279 Where customary laytime is exceeded 2.283 Customary quick despatch 2.285 CHAPTER 3. COMMENCEMENT OF LAYTIME 3.1 The specified destination 3.2 Berth charters 3.32 Dock charters 3.40 Port charters 3.50 Arrival within the port 3.53 At the immediate and effective disposition of the charterer 3.66 READINESS TO LOAD AND DISCHARGE 3.117 Physical readiness 3.124 Overstowed cargo 3.154 Equipment 3.157 Other physical matters 3.169 Legal readiness 3.172 Common law 3.176 Customs clearance 3.178 Free pratique and quarantine 3.179 Additional requirements 3.197 Contracts of sale 3.209 Implied requirements 3.212 The Indian cases 3.215 Notice of readiness 3.222 When and how to be given 3.226 Express provisions 3.239 CONTENTS xi Notice in advance of arrival 3.255 Time lapse between readiness and commencement of laytime 3.259 The Gencon form of charter 3.264 Notice given before commencement date for laytime 3.265 Correctness of notice of readiness 3.267 Notice of readiness and clause 6 of the Asbatankvoy form of charter 3.296 Acceptance of notice 3.307 Readiness and readiness 3.340 Readiness under GAFTA f.o.b. contracts 3.347 Work before laytime commences 3.348 CHANGES TO THE BEGINNING OF LAYTIME 3.358 Custom 3.361 Obstacles created by the charterer 3.367 Failure to have cargo available or arrangements for discharge 3.370 Congestion due to charterer’s other commitments 3.373 Charterer’s duty to act to enable a vessel to become an Arrived ship 3.380 Whether in berth or not (WIBON) 3.387 Whether in port or not (WIPON) 3.411 Time lost in waiting for berth to count as laytime 3.419 How time lost should be counted 3.437 Time lost in waiting for berth to count in full 3.441 Norgrain charter—waiting for berth 3.443 Gencon 94 form 3.445 Reachable on arrival/always accessible 3.451 Baltic Code 2007 3.477 Always accessible—for how long must the berth be accessible? 3.478 Always afloat 3.492 So near thereto as she may safely get 3.493 A.
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