Charter Parties and Cargo-Specific Clauses
Reading a charter party means connecting the fixture recap and riders with Notice of Readiness (NOR), port-call facts and times. The actual contract determines how laytime, demurrage, despatch or hire/off-hire apply and which port, berth, afloat and NAABSA conditions need checking.
Operational Explanation
Before the port call, identify in the fixture recap, form and riders the conditions affecting arrival, readiness and cargo operations. During the call, link each communication and stoppage with its times and supporting records: an accurate chronology allows the calculation to be checked and disputed points to be referred to the Company. Keep the recorded fact distinguishable from its contractual consequence.
In voyage chartering, laytime governs allowed time and demurrage/despatch follow the contract. Under a time charter, hire and off-hire normally govern use of time; laytime, demurrage and despatch apply only where the particular charter or a voyage sub-fixture provides. Demurrage is contractual compensation/liquidated damages as characterised by contract and governing law, not a generic penalty.
Regulatory Reference
Read the agreed fixture recap, form and riders, applicable law and clause precedence. The BIMCO Laytime Definitions 2013 apply when incorporated: they are not automatically contract terms.
BIMCO — NAABSA wording: additional berthing wording, subject to owners’ agreement. Check its conditions and required confirmations; a safe-berth clause alone does not authorize taking the ground.
Under the WAITBERTH 2002 model wording, NOR while waiting for an unavailable berth is provided for during ordinary office hours and requires actual readiness warranted by the master; movement from the waiting place to the berth does not count as laytime. Under the NAABSA wording, also check the charterers’ written confirmation of a soft bed and the ability to lie aground without damage. Apply these conditions only where agreed, together with the other fixture terms.
Scope of Application
Voyage charter: apply laytime/demurrage/despatch as agreed. Time charter: apply hire/off-hire and use laytime mechanisms only where expressly incorporated or under a voyage sub-charter. For port/berth separately check safety undertaking, afloat wording, NAABSA, draft, UKC, tide and access restrictions.
Procedure / How to Complete It
- Identify charter type, parties, incorporated clauses and applicable law; distinguish the head charter from any sub-fixture.
- Before tendering Notice of Readiness (NOR), check contractual arrival and readiness conditions, recipients, delivery method and permitted times; preserve transmission and receipt evidence.
- Record events, start/end times, weather and stoppage causes in the Statement of Facts using consistent times; flag inaccuracies before signing.
- Separate facts from laytime/demurrage or hire/off-hire calculations, referring disputes and contractual deadlines to the Company and advisers.
- Check safe port/berth, afloat and NAABSA separately; document draft, UKC, tide and restrictions.
Practical Example
BIMCO — WAITBERTH 2002: if incorporated, it allows NOR on arrival while waiting for a berth under specified conditions, but retains actual readiness. Do not transfer this rule to a differently worded fixture. Record the facts and obtain contractual assessment without assuming that any NOR starts laytime.
What Typically Goes Wrong
Applying laytime and demurrage to every time charter, calling demurrage a penalty or deriving always afloat from safe port/safe berth wording alone.
Common Mistakes Mistake Library
| Mistake | Consequence | How to Avoid It |
|---|---|---|
| Voyage and time charter confused | Wrong economic mechanism | Identify actual hire/off-hire and laytime clauses |
| Demurrage called a penalty | Potentially wrong legal characterisation | Use contractual compensation/liquidated damages under contract and law |
| Safe berth equated with always afloat or NAABSA | An unagreed condition is invented | Read each wording separately |
What the PSCO Checks
Operational Tips
- The Master records and checks facts and times and makes assessments within the assigned role; refer disputes and legal-liability questions to the Company and advisers.
- Use fixture wording and definitions, not generic defaults.
- Promptly escalate inconsistencies to Company/P&I/counsel.
Preparation checklist
- Fixture recap, form, riders and applicable law identified
- NOR conditions and transmission/receipt evidence checked
- Accurate Statement of Facts and consistent times
- Laytime/demurrage distinguished from hire/off-hire
- Safe berth, afloat, NAABSA and navigational limits checked separately
FAQ
Related Topics
Certified substantive revision: 16 October 2026 · page fingerprint e6235adcb6de