Laytime Calculation Example 5

Laytime Calculation

Here’s another example of laytime calculation in a voyage charter-party agreement:

Charterparty Terms:

  • Allowed laytime for loading: 42 hours
  • Allowed laytime for discharging: 54 hours
  • Demurrage rate: $11,000 per day or pro-rata
  • Despatch rate: 50% of demurrage rate

Timeline:

  • Ship arrives and gives Notice of Readiness (NOR) at the loading port on August 3 at 14:00.
  • Laytime starts counting after 6 hours of waiting time on August 3 at 20:00.
  • Loading completed on August 5 at 10:00.
  • Ship arrives and gives NOR at the discharging port on August 12 at 18:00.
  • Laytime starts counting after 4 hours of waiting time on August 12 at 22:00.
  • Discharging completed on August 15 at 08:00.

Laytime Calculation:

Loading:

  1. Calculate the actual laytime used for loading: From August 3, 20:00, to August 5, 10:00, which is 1 day and 14 hours, or 38 hours.
  2. Compare actual laytime used (38 hours) with allowed laytime (42 hours): The actual laytime is less than the allowed laytime by 4 hours.
  3. Calculate despatch for loading: 4 hours of unused laytime, which is 1/6 of a day. The despatch rate is 50% of the demurrage rate, so the despatch for loading is (1/6 * 0.5 * $11,000) = $916.67.

Discharging:

  1. Calculate the actual laytime used for discharging: From August 12, 22:00, to August 15, 08:00, which is 2 days and 10 hours, or 58 hours.
  2. Compare actual laytime used (58 hours) with allowed laytime (54 hours): The actual laytime exceeds the allowed laytime by 4 hours.
  3. Calculate demurrage for discharging: 4 hours of excess laytime, which is 1/6 of a day. Demurrage is $11,000 per day, so the demurrage for discharging is (1/6 * $11,000) = $1,833.33.

Final Settlement:

  1. Calculate the difference between demurrage and despatch: $1,833.33 (demurrage) – $916.67 (despatch) = $916.66.
  2. Since the difference is positive, the charterer owes the shipowner $916.66 as demurrage payment.

In this example, the charterer is liable to pay demurrage to the shipowner, as the demurrage incurred during discharging is not entirely offset by the despatch earned during loading.

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