How do you calculate Laytime?
Table of Contents
How do you calculate Laytime?
There are seven stages in a laytime calculation:
- Read relevant clauses in the charter party.
- Obtain Statement of Facts from agent.
- Determine duration of laytime allowed.
- Establish time of commencement of laytime.
- Allow for interruptions to laytime as per the charter party.
- Establish time of expiry of laytime.
What is the purpose of calculating Laytime?
The purpose of calculating laytime is not only to calculate the time during which the vessel is made available to the charterer for loading and/or discharging but also to calculate demurrage or despatch if there is time lost or saved.
What is a Laytime statement?
by Ship Inspection. A document on which the agent has made a calculation of the amount of demurrage (owed to owners) or despatch (owed to charterers), as the case may be, based on the facts in the Statement of Facts.
How do you calculate vessel demurrage?
Calculation of Demurrage
- Total Laytime Allowed 11 days.
- Demurrage Rate $60,000 per day pro rata (PDPR)
- Ship exceeded laytime allowed for loading and discharging by 4 days 6 hours 30 mins.
- Demurrage Payable =4d 6h 30m x $60,000 per day =4.27083 days x $60,000 = $256,250.
What is laytime and demurrage?
Laytime can be defined as the amount of time allowed to a ship in a voyage charter for loading and unloading of cargo at a port. If a ship fails to complete the work during this allotted time and the ship is required to stay at a port for a longer time, then demurrage (fine) is incurred to the ship owner.
What is free time in shipping?
“Free time”: the period of time offered by the Carrier to the Merchant free of charge, covering both demurrage period and detention period, beyond which additional charges such as, but not limited to demurrage and detention charges, will be due to the Carrier.
What is the difference between laytime and demurrage?
‘laytime’ refers to the time allowed in a voyage charter for cargo to be loaded on to or unloaded from a vessel; and. ‘demurrage’ is incurred after the permitted laytime is spent.
What is free-time demurrage and detention?
Definition of Demurrage, Detention, Demurrage and Detention Combined, and Free Time. Demurrage and detention both refer to fees incurred by importers and exporters alike when containers are either not picked up or dropped off within the appropriate amount of time.
How is detention calculated?
Per diem detention fees are typically calculated based on when the containers leave the port, terminal or depot through the time they are returned there. They range from $50-$100 per container per day on average until equipment is returned. Driver detention fees vary based on the company, equipment, and geography.
What is free-time at destination?
What is free-time in shipping?
How much is demurrage per day?
$75 to $150 per container per day
How much does demurrage cost? Daily charges range from $75 to $150 per container per day; however, charges can and do increase the longer the cargo stays on the terminal.
What is demurrage free time?
Demurrage costs are applied from the moment the free time expires until the end of the day when the container is picked up and removed from the terminal.
What is free detention and demurrage?
In most South-American countries, the meaning of “demurrage” and “detention” is inverted! In these countries, “demurrage” refers to the time containers spend outside the port, while “detention” refers to the time spent on port grounds.
