Defence Guides Interruptions and exceptions to laytime in a nutshell

1. Difference between 2. Interruptions to laytime: 3. Exceptions to laytime

Interruptions and exceptions There are numerous interruptions An example of exceptions to to laytime to laytime. The most common are laytime can be found in the Gencon An interruption to laytime covers a Weather Working Days and Sunday charterparty: the “General Strike period when time does not count and Holidays excepted. Clause” and “General Ice Clause”. because it is outside the definition a. Weather Working Days a. Period of application of exceptions of laytime as expressed in the to laytime laytime clause. A common example The meaning of the word “weather” is is “Weather Working Day” (WWD) to be determined as a question of fact. An exceptions clause will normally laytime period. What might constitute bad weather for only apply to laytime one vessel will not necessarily be the It will not protect the charterer after An exception to laytime, refers to a same for another, even though both period that is within the definition the vessel has come on demurrage, are in the same port at the same time. unless it explicitly provides so of laytime, but is excluded by an A period of rain may well prevent the exceptions’ clause. discharge of a cargo of rice, but not a The charterer’s duty to have the cargo at the loading place ready The principal difference between cargo of crude oil. for shipment at the right time is an the two is that with an exception Weather days: Is the Statement of Fact absolute one to laytime it is necessary to show (SOF) binding? a causal connection between what Exceptions clauses will be limited is excepted and the failure to work The SOF usually record the weather to the periods when loading and cargo, whereas with an interruption conditions in the port and is prepared discharging operations are going on, to laytime all that needs be shown for by the agent. It is usually counter unless the clause clearly indicates causation is that the excluded state of signed by the master. Although the that it also applies to the operation affairs exists at the place where cargo SOF is persuasive evidence, it is by no of bringing the cargo down to the would have been worked. means binding. It is open for a party loading place or removing it after to rebut the information in the SOF discharge For example: with, for example, evidence from a Ship A has a port charter with an local weather station. If owners have b. The clause will be narrowly interruption to laytime expressed in any doubts as to the objectivity of interpreted “Weather Working Days” the agent’s SOF, it is recommended Exceptions clauses are construed to appoint a protective agent to make Ship B has a similar charter but with against the party for whose benefit sure the information in the SOF is laytime expressed in working days they are included in the charter accurate. and additional clause excluding time Laytime exceptions will be strictly lost due to adverse weather b. Sundays and holidays excepted construed and an ambiguous clause If both are waiting at anchorage for Although Sunday doesn’t pose any will offer no protection a berth, for ship A, rainy periods on problem in its interpretation, the word c. The charterer must use reasonable working days will be excluded from “holiday” can in some cases be harder means to overcome the hindrance laytime, but not in the case of ship to define. Whether a day is a holiday B. This is because the rain did not or not is a question of fact which will The charterer cannot avail himself delay the cargo operations be decided by looking at regulations, of the exception clause if he can practice, and custom. A holiday can surmount by reasonable endeavor, the be decided by a local authority and hindrance. If the port authority orders may apply to just the port and its the suspension of loading at a berth local area regardless as to whether but there is another berth where the work is in fact done. cargo can be loaded, albeit to do so would be at extra time and expense to the charterer, then the clause will not protect the charterer. Defence Guides

d. Do General exception clauses apply b. What does “fault” mean? If de-ballasting or ballasting delay to laytime and demurrage? cargo operations and it is not The mere fact that the shipowner necessary for these operations to It is doubtful that a general exception by some act of his prevents the be carried out but are done for the clause would apply to laytime and continuous loading or discharging of convenience of the shipowner then the demurrage unless specifically stated. the vessel is not enough to interrupt time lost will be due to his fault and A typical example is that contained at the running of the laydays; it is will not count. clause 19 of Part II of the Asbatankvoy necessary to show also that: where the wording is too general and If a ship grounds due to the negligence There a breach of obligation on the the laytime and demurrage provisions of the crew then time will be part of the shipowner have their own code of more limited suspended. Conversely time will count exceptions. The delay must be for a duty for if the grounding was not due to the which he is directly responsible negligence of the crew. There is however an argument that under the charter or for which he has such clause could constitute an delegated his responsibilities Time lost for non-production of a bill exception to laytime and demurrage, of lading at discharge port will not if a general exception clause refers The fault must be the only or the count unless the charter obliges the to delay in loading or discharging and only effective cause of the delay owners to accept an LOI. there is no other separate code of The delay must not be beyond c. Can the fault of the owner laytime and demurrage exception. the control of the owner and the be excluded? owner must do nothing voluntarily 4. Fault of the shipowner to prevent the ship from being Fault of the owner can be excluded continuously available for cargo however the clause would have to a. What period of time can charterer operations be very clearly worded. Clauses claim for? incorporating the USCOGSA or In addition laytime or time on Laytime and demurrage will not run general exception clauses which make demurrage will not run if owners when the delay is caused by the fault the owner not liable for delay arising voluntarily prevent their ship being of the shipowner. The delay and the from acts, neglects of the master and continuously available for cargo cause of the delay must however be other servants of his in the navigation operations, whether or not such contemporaneous and will not include or management of the vessel, will not operations are planned by the consequential delay. Only where the be sufficient to exclude the fault of the charterers charterers have been deprived of the owner. use of the vessel at a time when they Examples: wanted the use of her, will time be If under a charter, owners are suspended. For example, where time July 2016 responsible for the stevedores, any is lost because a berth is no longer time lost as a result of stevedore’s This article was written by Julien available because of an earlier fault of negligence will be for owners’ account. Rabeux in the Club’s Hong Kong office the owner, charterers will not only be However if the cause of the delay is with additional input from Mark Doyle able to suspend laytime or demurrage beyond the control of the owner, such of Mills &Co. for the time waiting for the berth. as a stevedore’s strike, the owner will Charterers may however have a claim This note is for general guidance only and not be responsible for the delay. in damages for breach of a separate should not be relied upon as legal advice. Should you require specific advice on a obligation under the charter. particular situation please contact the Club.

The West of England Ship Owners Mutual Insurance Association (Luxembourg) UK office One Creechurch Place, Creechurch Lane, London EC3A 5AF

Tel +44 20 7716 6000 Email [email protected] www.westpandi.com Follow us on D C G - I E L- G B R-19 -V1