Miscelleneous

What are Important terminology used in Charterer Party or CP ?

All Time Saved

The time saved to the ship from the completion of loading / discharging to the expiry of the laytime including periods excepted from the laytime.
All Working Time Saved or All Laytime Saved The time saved to the ship from the completion of loading / discharging to the expiry of the laytime excluding any notice time and periods excepted from the laytime.
As Fast As The Vessel Can Receive / Deliver The laytime is a period of time to be calculated by reference to the maximum rate at which the ship in full working order is capable of loading / discharging the cargo.
ATUTC All time used to count
Berth The specific place where the ship is to load and or discharge.
If the word berth is not used, but the specific place is( or is to be ) identified by its name, this definition shall still apply
CHOPT Charterer’s option ( often refers to a discharge port )
Clear day or Clear Days The day on which the notice is given and the day on which the notice expires are not included in the notice period.
Customary Despatch The charter must load and or discharge as fast as is possible in the circumstances prevailing at the time of loading or discharging.
Day A continuous period of 24 hours which, unless the context otherwise requires, runs from midnight to midnight.
Despatch Money or Despatched The money payable by the owner if the ship completes loading or discharging before the laytime has expired.
Demurrage The money payable to the owner for delay for which the owner is not responsible in loading and or / discharging after the laytime has expired.
Even If Sooner Berthed  The charterer will have the period of notice time even if the vessel berthed in a period of time shorter than that fixed in Notice of readiness clause
Excepted The specified days do not count as laytime even if loading or discharging is done on them.
F.I.O.T Free In Out and Trimmed.
Free to the ship, with the charterer organising and paying for the stevedoring.
Holiday A day of the week or part(s) thereof on which the notice is given and the day on which the notice expires are not included in the notice period
In Writing In relation to a notice of readiness, a notice visibly expressed in any mode of reproducing words and includes cable, telegram, telex, fax (email requires the consent of all parties prior to signing of contract)
Liner Terms Applicable to a liner trade where an owner has his ships regularly calling at his arranged berths and thus can offer to load and discharge incorporating stevedoring into the freight rate
Laytime The period of time agreed between the parties during which the the owner will make and keep the ship available for loading / discharging without payment additional to the freight.
Notice of Readiness Notice to the charter, shipper, receiver or other person as required by the charter that the ship has arrived at the port or berth as the case may be and is ready to load / discharge.
On Demurrage The laytime has expired. Unless the charter party expressly provides to the contrary the time on demurrage will not be subject to the laytime exceptions.
Port An area within which ships are loaded with and / or discharges of cargo and includes the usual places where ships wait for their turn or are ordered or obliged to wait for their turn no matter the distance from that area.
If the word port is not used, but the port is ( or is to be) identified by its name, this definition shall still apply
Per Hatch Per Day Laytime is to be calculated by multiplying the agreed daily rate per hatch of loading / discharging the cargo by the number of the ship’s hatches annd dividing the quantity of cargo by the resultant sum.
Thus
Laytime  =         Quantity of Cargo      =  Days
Daily Rate x Number of Hatches

About the author

Amit Sharma

Graduated from M.E.R.I. Mumbai (Mumbai University), After a brief sailing founded this website with the idea to bring the maritime education online which must be free and available for all at all times and to find basic solutions that are of extreme importance to a seafarer by our innovative ideas.

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