Home / Event / Dry Cargo Laytime and Demurrage eLearning

Dry Cargo Laytime and Demurrage eLearning

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Date/Time
Date(s) - 30/05/2017 - 29/08/2017
All Day

Location
BIMCO Head Office (eLearning)

Categories


For further information, please contact:
BIMCO Training
Tel.: (+45) 4436 6830
Email: [email protected]
Programme

This module focuses on the fundamental principles which underpin laytime and demurrage and how these principles can be changed quite dramatically by the wording of contractual terms. The module also includes practical examples of calculations. Laytime and demurrage disputes constitute a substantial proportion of the cases which are tried by arbitrators and courts in many countries in any year and which result in substantial legal/other costs to the parties concerned.

The saying “time is money” is particularly relevant to all aspects of shipping activity. In the context of voyage charters, the risk of delay falls predominantly on the shipowner since the owner receives the same amount of freight no matter how long the voyage takes. However, the shipowner’s problem is that the freight will have been assessed as an estimate of the expenses, many of which increase with the passage of time (eg salaries, insurance, port costs, bunkers etc). Therefore, if the shipowner’s initial estimate of the voyage duration proves to be inaccurate, his expenses will increase and this will squeeze the profit margin that he has built into the freight. Therefore, the shipowner will wish to transfer the risk of delay, particularly during those stages of the overall voyage where he has minimum control (ie the loading and discharging of the cargo) to the charterers.

In similar fashion, the charterers will not wish to accept the risk of delays occurring either on stages of the voyage over which they have minimum control (ie the approach voyage to the loadport and the laden voyage from the loadport) or when delays occur beyond their control during the cargo operations stages.

Therefore, laytime and demurrage provisions are intended to allocate the risk of delay by agreement between the shipowners and voyage charterers, and if needs be, between the sellers and buyers under an underlying cargo sale contract. However, unlike many other aspects of shipping, laytime and demurrage is not subject to any compulsory international regulation and is not the subject of insurance. Therefore, disputes relate to the shipowners’, charterers’ or traders’ “own dollar in their own pocket” and success often depends on the successful or unsuccessful negotiation of particular contractual terms. Consequently, shipping and trading companies tend to employ laytime and demurrage specialists who, if successful, can contribute substantially to that organisation’s profitability.
Topics covered

introduction to laytime and demurrage
how is laytime calculated and types of laytime
when laytime starts to run
what suspends laytime and when does laytime end?
demurrage – rates, timing and liability
demurrage – when payable, time bars and despatch
claims for damages for detention
laytime and demurrage in the international sale of goods.

eLearning is entirely web-based

The course content is delivered through a combination of:

digital textbook which explains the topics with great details, examples and interactions
three webinars, group work, three case studies, and access to model answers and webinar recordings
online tutor assistance, a discussion forum, a library with relevant reports, articles and charter parties
a PDF version of the online book (without the interactive parts)
a final online written examination.

The fee includes access to this eLearning module and three scheduled webinars. It also includes the final exam, as well as online assistance from the tutor. The fee does not include any of the materials listed under “recommended reading” in the syllabus.

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