In Blog

LAYTIME – Berth Charter or Port Charter? Do you know the difference?

When preparing the laytime calculation, or even when negotiating a charter, not everyone pays attention to this important detail, but in a dispute for demurrage charges it can make a big difference. This is because there is a rule for starting laytime counting:

PORT CHARTERPARTY – The sea passage ends when the ship arrives at the official perimeter of the port, regardless of whether it has direct berthing or not. Thus, the Notice of Readiness can be given on arrival, and the laytime starts counting according to the stipulated rules.

BERTH CHARTERPARTY – The sea passage ends when the ship arrives at the berth, only, that is, after berth, and it is only at that moment that the Notice of Readiness can be given by the ship.

But the definition is not that simple, as both in the first and in the second case there are exceptions and some essential conditions for a NOR to be recognized as valid, such as the 4 Ws (WIPON, WIBON, WIFPON, WICCON), allowed times, to whom it is addressed and the method of sending, etc., and which can completely change the time at which laytime counts.

Is GENCON CP, for example, in its standard format a Berth or Port Charter Party?

(In the image, the method of boarding and unloading that gave rise to the term “board” of boarding and unloading, in which the cargo was rolled or loaded by a board placed between the ship and the wharf.)

 

Start typing and press Enter to search