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Charterparty Clauses
Laytime - Demurrage - Dispatch
Transcript

Laytime -Laydays
The Charterparty is the document that seals a bilateral agreement between the shipowner and the charterer by means of which the lessee hires the ship or part of it for the transportation of cargo from the one port to another. As all contracts it consists of a number of clauses most of which are fixed. One of the most important charterparty clauses is the Laytime clause. Laytime is the amount of time agreed upon by the two parties during which loading and/or discharging of cargo will take place. This amount of time can be expressed in hours or days or tons per day.
Laydays / LAYCAN
The term Laydays can also express the period of time during which the shipowner must present their vessel for loading. The Cancelling date is the final date beyond which, if the chartered vessel has not been presented for loading, the charterers may reject the vessel and cancel the charter. It is found in a cancelling clause with the heading ‘Laydays and Cancelling’ (LAYCAN). In charterparties and related documents the LAYCAN is usually indicated by, for example 10/25 June, which means that the 10th of June is the first day while the 25th June is the Cancelling date. The term to ‘narrow the laycan’ means to reduce the number of days between the first of the laydays and the last.
Demurrage
If loading and/or discharging takes longer than the amount of time agreed upon in the charterparty, demurrage is payable by the charterers to the shipowners per day or pro-rata per part of the day. Demurrage is paid day by day and is normally payable upon receipt of the Owner’s invoice. If demurrage is not paid, the Owners give the Charterers 96 running hours written notice to rectify the failure.If the demurrage is not paid at the expiration of this time limit and the vessel is in or at the loading port, the Owners are entitled at any time to terminate the charterparty and claim damages for any losses caused.

Abbreviations denoting excepted periods when loading or unloading do not normally count in the calculation of laytime
SHEX: Sundays and Holidays do not count in the calculation of laytime even if the operations take place in such periods
SHEXEIU:Sundays and Holidays do not count in the calculation of laytime even if the operations take place
SSHEX: Saturdays, Sundays and Holidays do not count in laytime
SHEXUU: Sundays and Holidays do not count in laytime unless used
SHINC: Sundays and Holidays count in laytime calculation
Dispatch / Half dispatch

This term refers to the amount payable by the shipowners to the charterers / shippers or consignees for loading or discharging in less than the time allowed. It is usually calculated at half the agreed rate of demurrage. In a charterparty the abbreviation DEMDES means Demurrage and Despatch