Charter Parties and Cargo-Specific Clauses
Laytime, demurrage and despatch normally belong to voyage chartering; safe port/berth, always safely afloat and NAABSA are distinct terms to be read in the wording actually incorporated.
Operational Explanation
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
The decisive source is the charter party and every incorporated clause. BIMCO clauses and explanatory notes are primary drafting references but do not replace the fixture. Safe port/safe berth, always safely afloat and NAABSA/safely aground remain distinct wording.
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, governing law and incorporated clauses.
- Record facts and times under the charter without deciding the final legal calculation on board.
- Separate laytime/demurrage from hire/off-hire.
- Check safe port/berth, always safely afloat and NAABSA/safely aground separately.
- Document draft, UKC, tide, access and notices required by the fixture.
Practical Example
A time-chartered vessel accurately records delay facts and times but does not presume demurrage: it checks hire/off-hire and any voyage sub-fixture. For a mud berth, a safe-berth clause alone is not NAABSA: specific wording is required.
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 facts and times, not final legal liability.
- Use fixture wording and definitions, not generic defaults.
- Promptly escalate inconsistencies to Company/P&I/counsel.
Preparation checklist
- Charter type and governing law identified
- Laytime or hire/off-hire correctly applied
- Demurrage characterised under contract
- Safe port/berth wording separated from afloat and NAABSA
- Draft, UKC, tide and access restrictions documented
FAQ
Related Topics
Last substantive revision of this page: 31 August 2026 · page fingerprint 708443a3f80e