An overview of laytime and demurrage

Abstract

The thesis analyses the concept of laytime and demurrage, starting off with a brief examination of its historical emergence. Its development, within the context of the voyage charter party, up to the present day, is discussed. Particular stress is placed on principles which have emerged from the English common law system. The first part of the thesis comprises a discussion of laytime, its calculation and the clauses which qualify, advance or delay its commencement. The three requisites necessary for laytime to start running are examined, as are the various methods of measuring the laytime. The particular clauses usually inserted in the charter party contract intended to except certain particular circumstances which would, as a general rule, prevent the continuous running of the laytime are then discussed. The nature of demurrage, and liability for the same are reviewed in the second half of the thesis. Various aspects of demurrage, such as its nature, definition, rate and method of calculation are also considered. Liability for demurrage under the bill of lading, the way in which such liability may be incurred, the necessity of referring to the terms of the charter party and the termination of the charterer's liability under the cesser clause are also outlined and explained. Chapter 5 attempts a comprehensive analysis of some of the basic rules relating to the imposition of contractual time bars for the bringing of the demurrage claim. In conclusion, both laytime and demurrage are reviewed in the context of Maltese law, emphasis being placed on existing relative legislation, and suggestions for improvement.