CHARTER PARTY AND LAY TIME
CHARTER PARTY:-
It is a written, or partly written partly printed contract between a ship owner and a charterer, by which a ship is let or hired for the conveyance of goods on a specified voyage or for a definite period.It defines the obligations, rights and liabilities of ship owner and charterer. It usually comprises a set of standard clause on a printed form with additional typed Rider clauses appended if the standard clauses fail to cover all aspect of parties agreement. It may have many amendments, called Side clauses to the standard clauses, as agreed by parties. It may have sensitive clauses in an addendum and/ or side letter. Side letters are not so important as addenda. Addenda is not written in printed charter party. Charter parties are often drawn up by brokers acting for charterer and are based on an evolved, standardized form.
LAY TIME:-
It is defined in voyage charter party lay time interpretation rule as the period of time agreed between the parties during which the owners will make and keep the vessel available for loading or discharging without payment additional to the freight. It is time allowed to the charterers for cargo operation without additional payment
It may be three types with respect to method of determining the duration --
1) Definite lay time -- it will be stated in charter party as 6 days --- or-- 48 running hours.
2) Calculable lay time --- It is determined by making a computation from information in the charter party e.g. where a cargo weighing 20,000 tons is loaded at a rate of 10,000 tons/day, the lay time will be 2 days.
3) Indefinite lay time -- The charter party may state that the cargo to be loaded with " customary dispatch" or " customary quick dispatch" or " as fast as vessel can receive".
Lay time is usually agreed to commence after a elapse of an agreed period after the vessel is ready in all respect to load and has served the charterer a written notice called notice of readiness.
If the lay time is exceeded by the charterer, he has to pay the owner a compensation called "demur rage". But if the ship has loaded or discharged quicker than lay time, the owner will have to pay the charterer a compensation called " dispatch".
It is a written, or partly written partly printed contract between a ship owner and a charterer, by which a ship is let or hired for the conveyance of goods on a specified voyage or for a definite period.It defines the obligations, rights and liabilities of ship owner and charterer. It usually comprises a set of standard clause on a printed form with additional typed Rider clauses appended if the standard clauses fail to cover all aspect of parties agreement. It may have many amendments, called Side clauses to the standard clauses, as agreed by parties. It may have sensitive clauses in an addendum and/ or side letter. Side letters are not so important as addenda. Addenda is not written in printed charter party. Charter parties are often drawn up by brokers acting for charterer and are based on an evolved, standardized form.
LAY TIME:-
It is defined in voyage charter party lay time interpretation rule as the period of time agreed between the parties during which the owners will make and keep the vessel available for loading or discharging without payment additional to the freight. It is time allowed to the charterers for cargo operation without additional payment
It may be three types with respect to method of determining the duration --
1) Definite lay time -- it will be stated in charter party as 6 days --- or-- 48 running hours.
2) Calculable lay time --- It is determined by making a computation from information in the charter party e.g. where a cargo weighing 20,000 tons is loaded at a rate of 10,000 tons/day, the lay time will be 2 days.
3) Indefinite lay time -- The charter party may state that the cargo to be loaded with " customary dispatch" or " customary quick dispatch" or " as fast as vessel can receive".
Lay time is usually agreed to commence after a elapse of an agreed period after the vessel is ready in all respect to load and has served the charterer a written notice called notice of readiness.
If the lay time is exceeded by the charterer, he has to pay the owner a compensation called "demur rage". But if the ship has loaded or discharged quicker than lay time, the owner will have to pay the charterer a compensation called " dispatch".
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