Charterparty Clauses

There is no mystery in calculating a time sheet, it is simply a matter of painstakingly going through the Statement of Facts in conjunction with the charterparty clauses and as each fact is set down the time worked is shown in one column and the amount of time which will count as ‘laytime used’ in a separate column.  A running total of laytime used should be kept because the method of calculation changes when the time allowed is used up and the ship goes on demurrage. The expression ‘once on demurrage, always on demurrage’ means that no matter what times are excepted from normal laytime such as Sundays, holidays, stoppages due to bad weather, etc. no time is excepted once the allowed time is used up.  That will mean that the time sheet will show when the laytime expired and from that point on, every minute of every day until the job is finished counts for demurrage regardless of whether they are holidays, rainy days or even when the port is out on strike. Calculating despatch is somewhat different depending upon the wording of the charter party.  In the majority of cases the charter will read ‘Despatch on laytime (or working time) saved’ which means that all the excepted periods for calculating laytime will apply when calculating time saved.  For example, if the ship finished work on Friday evening but the time allowed did not expire until midday Tuesday under a SHEX charter, then the owners would pay the charterers a day and a half’s despatch. Owners consider this fair and just on the basis that the calculation of time saved should be the same as for the time used.  Occasionally, however, the charterers will succeed in negotiating ‘despatch on all time saved’, arguing that the ship has been saved the time and what is good for demurrage is good for despatch.  Regardless of the merits of the two arguments, if despatch is on all time then all the time from completion to when laytime expires will count for despatch.