SYLLABUS Certificate in Laytime and Demurrage MODULE 1

Laytime and Demurrage Introduction and Context

Course Content

• Key terms and concepts ◦ Chartering ◦ Charterers ◦ Shipowners ◦ Ship management companies ◦ Chartering brokers (Shipbrokers) ◦ The Contract of Carriage ◦ Laytime ◦ Demurrage ◦ Dispatch • Background to chartering ◦ The chartering practice ◦ Types of charterparties ◦ Freight ◦ Hire ◦ Fixing a voyage charter • Legal framework ◦ The basis of laytime and demurrage ◦ The Notice of Readiness (NOR) ◦ Statement of Facts (SOF) ◦ The “Arrived Ship” Notion • Charterparties and clauses ◦ Charterparties ◦ Clauses for the tanker and dry market ◦ Special clauses • Laytime and freight rate

Learning Outcomes

• The basic principles of chartering • Different types of chartering: time,voyage and bareboat • Understand what is laytime, demurrage and desptach

informaconnect.com/certificate-in-laytime-and-demurrage/ SYLLABUS Certificate in Laytime and Demurrage MODULE 2

Defining Laytime

Course Content

• Types of laytime ◦ Fixed laytime ◦ Customary laytime ◦ Rates of cargo ◦ Freight index and Worldscale • Commencement of laytime ◦ Arrived ship ◦ Readiness and notice of readiness ◦ Wet vs. dry cargo • Interruptions and exceptions • Completion of laytime ◦ The importance of statement of facts (SOF) and notice of readiness (NOR) ◦ Completion of loading/discharging ◦ Delay after completion of loading ◦ Delay after completion of discharge • Normal, averaging and reversing laytime ◦ Normal or non-reversible laytime ◦ Reversible laytime ◦ Average laytime ◦ Difference

Learning Outcomes

• Legal and operational issue: the latime • All possibilities and remedies undertaken • The types of laytime • The complications that may occur in the commencement of laytime • What can be considered as an exception for laytime commencement

informaconnect.com/certificate-in-laytime-and-demurrage/ SYLLABUS Certificate in Laytime and Demurrage MODULE 3

Calculating Laytime

Course Content

• Tankers laytime • Dry cargo laytime • Step-by-step guide ◦ Statement of facts ◦ Timesheets ◦ Stages of laytime calculation • Multiple charters • Case studies and practical examples ◦ “Sundays and Holidays Excepted Unless Used” (SHEX UU) and “Weather Working Days” (WWD) ◦ “Sundays and Holidays Excepted” (SHEX) and “Weather Working Days” (WWD) ◦ “Time lost in waiting for berth to count as loading or discharging time, as the case may be” ◦ “Tanker Laytime”

Learning Outcomes

• Laytime calculation • How to interpret "Laytime Definitions 2013" and charterparty clauses • The commencement of laytime • How to assess the duration or laytime • The cessation of laytime • How to estimate the demurrage/despatch earned • How to recognize fundamental differences between dry cargo and tanker laytime • How to make a laytime calculation of multiple charters

informaconnect.com/certificate-in-laytime-and-demurrage/ SYLLABUS Certificate in Laytime and Demurrage MODULE 4

Demurrage, Detention and Despatch

Course Content

• Relevant fundamentals of contract law • Demurrage • Stoppage and termination of demurrage • Liability for demurrage • Damages for detention • Despatch • Deadfreight • Common law cases • Practical examples ◦ Despatch payable on “working time saved” ◦ Despatch payable on “all time saved” ◦ Comparison of normal laytime, reversible and average laytime

Learning Outcomes

• The fundamentals of contract law related to demurrage, damages of detention,despatch and deadfreight • How to determine the rate of demurrage in dry cargo and liquid cargo trades • The liability of charterers for demuurage • How to assess the termination of demurrage periods • How to determine the rate of despatch in dry cargo trades • The responsibility of the charterer to load full and complete cargo • The effect of deadfregiht on demurrage • The content and rational of past cases of English Common Law • How to estimate the demurrage/despatch earned • Practical differences in the despatch calculation • Practical differences between normal, reversible and average laytime

informaconnect.com/certificate-in-laytime-and-demurrage/ SYLLABUS Certificate in Laytime and Demurrage MODULE 5

Calculating Demurrage

Course Content

• The effect of charterparty terms ◦ Introduction ◦ Demurrage as a term in the charterparty • Basic calculations ◦ Definitions ◦ Calculating demurrage • Time bar clauses • Termination of demurrage ◦ Points on laytime and demurrage ◦ Dry cargo operations ◦ Liquid cargoes ◦ Collecting demurrage/despatch ◦ Balance payment clauses ◦ Conclusion • Insurance ◦ Introduction ◦ P&I ◦ FD&D ◦ Loss of hire insurance

Learning Outcomes

• How to define laytime and demurrage • How to perform demurrage calculation both for dry and wet charters • The difference between theory and its application to practices at all stages of a shipping adventure (from negotiation stage to the follow up/ performing of a voyage) • The terms of a charter party • The consequence of incorrect choice of wording in drafting charter party clauses in relation to demurrage • The importance of diversified interpretation of terms agreed • The differentiation in claims resulting from such interpretation

informaconnect.com/certificate-in-laytime-and-demurrage/ SYLLABUS Certificate in Laytime and Demurrage MODULE 6

Laytime, Demurrage and Despatch in Practice

Course Content

• Wet cargoes: case studies and practical examples ◦ Introduction ◦ Case Study • Dry cargoes: case studies and practical examples ◦ Introduction ◦ Laytime and demurrage calculation example ◦ Laytime and demurrage calculation example II • Supporting documentation ◦ Statement of facts (SOF) ◦ Notice or Readiness (NOR) ◦ Bills of Lading • Resolving disputes - Arbitration/Litigation ◦ Arbitration case study: Points of Claim ◦ Charterers Defence Submission ◦ Owners Comments to Charterers’ Submission ◦ Arbitration Award • Charter party simulation - Voyage outcome - Time sheet

Learning Outcomes

• Wet/dry cargo laytime and demurrage time calculations • Analysing charter party clauses and documents required for calculations • Dispute resolution procedures and arbitration • Understanding an arbitration award • Laytime and demurrage in chartering practice

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