UNIT 4 COMMERCIAL CALCULATIONS(6 HRS)

• Dead Freight, Notice of Readiness etc. Common

Fixture Terms, Common Charter Party Terms -
Conditions, Warranties,
• Exceptions & Exclusions, SOF, Calculation of Lay
Time-Examples of Lay Time Problems. Calculation of
Demurrage or
• Despatch in simple Lay Time problems.
LAYTIME CALCULATION
• To solve these problems following are important
• Give an account of laydays and
• Calculate the amount of demurrage or
• Despatch money payable
• Adopt a standard method of setting the workout
MAIN POINTS TO CONSIDER ARE
1. The number of days allowed for loading or discharging ie., workout
daily rate of loading or discharging.
2. Kind of laydays - whether laydays are "Working days" or "Weather
working days"- Also assume Sundays and Holidays are exempted unless
stated otherwise.
3. When the lay days begin to count eg., "When lay days to begin 24 hours
after notice of readiness is accepted" and time of acceptance is stated
or "Laydays to begin when vessel is in berth and time of berthing is also
mentioned. DAYS and RUNNING DAYS - means consecutive calendar
days, counting from midnight to midnight and includes Sundays and
Holidays whether work is actually done or not.
4. When the laydays expire – Use the recommended lay-out of the time
sheet- Enter “hours and minutes for each day” and total number of laytime
accumulated at the end of each day in succession” until whole period of
time allowed is accounted for.
5. Assessment of demurrage, if any due to the owner - If the ship is not
loaded or discharged, until after the laytime has expired, the whole period
of detention should be the cases for assessing the amount of Demurrage
payable. Usually, the Demurrage rate will be expressed as so much “Per day
and pro-rate for part of the day”.
6. Assessment of despatch money due to the charterer – If the ship has been
completely loaded or discharged before the laytime has expired, there will
be despatch money payable in respect of the time saved. Despatch money
will be expressed as being payable at “So much per day and Pro-rata”
CALCULATION OF LAYDAYS
Q1. A C/P (charter party) provides for 8,575 MT of cargo to be loaded at 1,250 MT per
weather working day (SHEX). Lay days are to commence 24 hrs after written notice
has been given by the master to the charterers agent during office hours on any day
(SHEX) that the vessel is ready to receive cargo whether in berth or not. Time is not
to count between 1 PM on Saturday and 7 AM Monday, or between 1 PM on the
last working day preceding a holiday and 7 A.M on the first working day after such
holiday. Demurrage, if incurred, is to be paid @ Pound 2,500 per day and pro-rata
and despatch money at Pound 1,250 per day and pro-rata for all time saved. Draw
up a time-sheet.
Notice was served at 1.30 PM on Wednesday, 4th November and loading
commenced at 3 P.M on the same day. Friday 13th November was a public holiday.
Bad weather prevented work from 9 A.M to 11.30 A.M on 10th November and
again from 2 P.M to 4 P.M on 18th November. Loading was complete and B/L signed
at 11.10 A.M on 19th November. Calculate lay days and demurrage/despatch.

ANSWER:
LAYDAYS = CARGO TO BE LOADED / CARGO LOADED PER DAY
= 8575 MT / 1250 MT = 6.86 days = 6 days 20 hours 38.4 min
= 6D 20H 38.4M
DAY DATE REMARKS TIME TO COUNT TOTAL TIME DEMURRAGE/ DESPATCH

NOR Tendered 0130 PM Loading

WED 4TH
Nov commenced 0330 PM but time not to
- - NIL
count

THU 5TH Nov Not to count until 0130 PM 10H30 M 00D10H30M NIL

FRI 6TH Nov 24H00M 01D10H30M NIL

SAT 7TH Nov UNTIL 0100 PM 13H00M 01D23H30M NIL

SUN 8TH Nov SUNDAY HOLIDAY 00H00M 01D23H30M NIL

MON 9TH Nov FROM 0700AM 17H00M 02D16H30M NIL

TUE 10TH Nov Bad weather 9AM to 1130AM 21H30M 03D14H00M NIL

WED 11TH Nov 24H00M 04D14H00M NIL

THU 12TH Nov UNTIL 0100 PM 13H00M 05D03H00M NIL

FRI 13TH Nov PUBLIC HOLIDAY 00H00M 05D03H00M NIL

SAT 14TH Nov FROM 7AM TO 1PM 06H00M 05D09H00M NIL

SUN 15TH Nov SUNDAY HOLIDAY 00H00M 05D09H00M NIL

MON 16TH Nov FROM 7AM 17H00M 06D02H00M NIL

TUE 17TH Nov 24H00M 06D20H38M 05H22M DEM

WED 18TH Nov Bad weather 2PM to 4PM 22H00M 24H00M DEM

THU 19TH Nov Loading completed 1110AM 11H10M 11H10M DEM

TOTAL DEMURRAGE 40H32M DEM

Demurrage amount = £ 2500 per day & pro-rata
Total Demurrage = 40H32M = 1.68889
Demurrage amount due = 1.68889 x 2500 = £ 4222.22

Q1a) The above problem can be modified as follows

(i) Loading rate at 1000 tons per working day of 24 consecutive hours (SHEX).
(ii) 13TH November not a holiday
(iii) Lay days to begin 24 hours after notice of readiness is given or when
loading begins whichever is earlier.
(iv) Loading completed at noon on 13th November.
Draw up a statement of lay days and calculate the amount of demurrage or
despatch money payable.
LAYTIME CALCULATION.docx
Q2. A tanker has 23,400 MT of oil to load and discharge in
172 running hours. Bunkering time is excluded. Lay hours
to commence 6 hours after N.O.R.is accepted. N.O.R was
accepted at the load port at 1200 hrs on Friday the 4th of
May. Work ceased while bunkering from 0730 to 1230 hrs
on 7th May. Loading finished at 1600hrs on 8th May. NOR
was accepted at the discharge port at 1500 hrs on the 18th
May and discharging was completed at 1830 hrs on the
22nd of May. The demurrage rate is $750/day or pro-rata.
Despatch money is not payable. Freight is due at $3.90 per
MT less 4% insurance. Calculate the amount due to the
ship on completion of discharge?
Q3. A vessel of 3,348 N.R.T is chartered for a full cargo to be loaded and discharged in
14 running days, bunkering time exempted. Lay days are to commence when the
vessel is in the berth and ready to load and discharge respectively. Demurrage, if
incurred is to be paid at 30p per N.R.T per day and pro-rata and despatch money at
half the demurrage rate for all time saved.
The facts are as follows
• Thursday 27th Aug 1030 – vessel arrived at load port
• 1200 – In berth and ready to load
• 1345 – Loading commenced
• Monday 31st Aug - Declared a public holiday- no work done
• Wednesday 2nd Sept. 0600 - Left loading berth for bunkering
• 0830 - Commenced bunkering
• 1530 - Completed bunkering
• 1945 - Made fast in loading berth and resumed loading
• Thursday 3rd Sept 1630 - Completed loading – B/L signed
• 1830 - Sailed from Load port
• Sunday – 20th Sept 1115 - Arrived at disport
• Monday-21st Sept 0500 – Berthed and ready to discharge
• 0800 – Commenced discharge
• Friday 25th Sept. 1345 - Completed Discharge
• 1445 - Sailed from disport
DRAW UP STATEMENT OF LAYDAYS and calculate amount of demurrage/despatch
payable?
Q4. Charter Party provides Lay time for loading six days; Lay
time for discharge three days. Lay time not to count from
Noon Saturday till Midnight Sunday even if used.
Demurrage at $ 3,500 per day or pro-rata.
Despatch at half demurrage rate on all time saved.
Lay time at load port commenced on 25th Nov 1200 hrs on
Monday completed on 29th Nov 1200 hrs.
At discharge port Lay time commence at 1200 hrs on
Thursday 12th Dec.
Discharging completed at 2400 hrs on Thursday 19th Dec.
Calculate the Demurrage/Despatch in each case?
Q5. A C/P provides for 16 weather days(S&HE) to be allowed for
loading and discharging. Stoppages due to machinery failures are
not to count are part of lay time and Saturday is to count as 3/4 of
a lay day. At the loading port the time used amounted to 10days 4
hours 30 minutes. At the disport, lay time commenced at 0830 on
Tuesday 26th July and discharging was completed at 1724 hrs on
4th August. The first Monday in August was a public holiday.
Rain prevented work being done during 5 1/2 hrs on 28th July and
work at No.4 hatch was suspended for 2 hrs on 29th July due to
winch breakdown. The ship has 5 hatches.
Calculate the demurrage or despatch money payable, if the
demurrage rate is Pound 250 per day and despatch rate is half the
demurrage rate?
Q6. A vessel is booked to receive 6000 tons of Cargo. The lay days are
to commence 24hrs after the notice of readiness is handed in.
Despatch money is Pound 250 per day and pro-rata, while
demurrage is Pound 350 per day and pro-rata. Work out the
implications of each of the following methods of assessing the lay
days, in the circumstances outlined below:
(a) 10 running days
(b) 600 tons per weather working day (SHEX)
(c) 10 days to be allowed (SHEXUU)
Notice of Readiness was handed in at Noon on Thursday 27th
December.
Tuesday and Wednesday 1st & 2nd January were holidays, but, Cargo
was worked on 2nd January. Work was impossible on 4th and 9th
January because of rain. The loading was completed and B/L signed
at noon on 10th January.
Q7. A C/P provides for a vessel to load a full cargo of not less than 11,400 tons
and not exceeding 12,600 tons at the rate of 1500 tons per day (SHEX unless
used). Lay days are to commence 24 hrs after notice of readiness and
charterers stevedores are to be employed at pound 1.75 per ton deadweight.
Demurrage, if incurred, is to be paid at pound 1600 per day and pro-rata and
6 running days are to be allowed for demurrage. Dead freight, if any is to be
paid at pound 16.25 per ton and the vessel is to have a lien on the cargo for
freight, dead freight and demurrage.
Notice was accepted on Tuesday 5th may at 10.30 A.M and, the charterer’s
agent agreed with the master’s declaration that the vessels deadweight
capacity was 12,250 MT. Monday 11th May was an official Holiday.
Loading commenced on Thursday 7th May and cargo was received on board as
follows:
7th May – 1200 tons 12th May – 1500 tons 16th May - 850 tons
8th May – 1145 tons 13th May- 1100 tons 18th May – 1075 tons
9th May – 475 tons 14th May – 960 tons 19th May – 875 tons
11th May – 1050 tons 15th May – 980 tons 20th May – 750 tons
Thereafter, no more cargo was forthcoming. Calculate the amount due to the
vessel by way of demurrage and dead freight, and when the vessel is free to
sail with the incomplete cargo?
Q8. A charter party provides for 8000t of cargo to be loaded at 250t per
workable hatch per Weather Working Day of 24 consecutive hrs SHEX.
Vessel has five holds and five hatches, the largest hold capacity being
1750t.
Lay times are to commence 24 hrs after Notice of Readiness is served.
Time is not to count between 1.00 P.M. Saturday and 7.00 a.m. Monday
or between I.00 P.M. on the last working day preceding a holiday and 7
a.m. on the first working day after such holiday. Demurrage, if incurred,
is to be paid at $6,000/- per day and pro rata and despatch money at
half demurrage rate for all time saved. N.O.R was served at 1.30 P.M. on
Wednesday, 4th Nov. loading commenced at 3.00 P.M. on the same day.
Friday, 13th November, was a public Holiday. Bad weather prevented
loading from 11.00 A.M. to 2.30 P.M. as on 12th Nov. and again from
4.00 A.M.P.M. to 4.00 P.M. on 16th Nov.
Loading completed at 10.00 am on 18th Nov.
Prepare a lay time statement and calculate the amount of demurrage or
despatch money payable?
Q9. A mini bulk carrier is chartered to load 30000 MT of coal from Haldia
bulk loading terminal in India at the rate of 9,600 MT PWWD SHEX. Lay
time commences to count 6 hours after Notice of Readiness is given to
the Charterers. Time is not to count between 1 p.m. on Saturday and 7
a.m. on Monday or between 1 p.m. on the last working day preceding a
holiday and 7 a.m. on the first working day after such a holiday.
Demurrage is to be paid @ Rs.30000/-per day and pro rata for part of a day.
Despatch @ Rs.18000/- per day and pro rata for all the time saved.
The vessel arrives berth on Monday, 22nd October at 0000 hrs and NOR
was given at the same time. Loading commenced at 1130 hrs on Monday
22nd October and completed on Monday 29th October at 2200 hrs.
Tuesday 23rd and 30th October was public Holidays. The rain stopped work
from 1400hrs to 2200 hrs on 24th October and again from 1000 hrs to
2300 hrs on 27th October.
Calculate the amount of demurrage/despatch?
Q10. A charter party states “Vessel to load in 100 running hours
exclusive of bunker time, Sundays and Holidays, Time not to count
from Noon on Saturday or the day previous to any such holidays,
until 6 AM on Monday or the day after such holiday, unless used.
Demurrage is to be paid at $600 per day and pro-rata, Despatch at
$300 per day and pro-rata 30% advance freight is to be paid less
3.5% for insurance and interest. Freight is to be paid at 8$ per ton”.
The vessel is chartered to load, 17500 MT of cargo. Lay time
commences at 8 A.M. on Wednesday 22nd March.
Friday 24th and Monday 27th March were public holidays. Work
ceased at 1700 hrs on Thursday 23rd March and resumed at 0800
hrs on Tuesday 28th March.
The vessel completed loading at 1800 hrs on Friday 31st March.
Calculate the balance due to the vessel?