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Hi. I am a shipping company director, transport academic, author, family man and all round nice guy. I have worked as shipbroker, shipowner, freight trader and bulk charterer, in senior positions, with some of the largest and most disrespected (joke) companies in the world. Ask my advice on all things shipping and you will receive my blunt and always honest answer. Hang around to learn more about chartering and ship broker salaries, chartering and ship broker jobs, chartering and shipbroker recruitment agencies, cheap freight, maritime education, chartering and ship broker qualifications, become a ship broker, tips on how to be a successful bulk shipping executive, philosophy, Zen and the art of shipbroking, and much more. Yours The Virtual Shipbroker (recently proclaimed the guru of shipbroking) Copyright © 2009-17 by Virtualshipbroker

Friday, December 11, 2009

Late for laycan? Charterers happy - why?

In response to the previous thread find my answer below

Hi guys

Good answers everyone.

Unfortunatley the shipowners cannot walk away if they are missing cancelling. Only the charterers can. So 99 percent of the time the owners "dont want to be late". They lose all power.

Plus if the market does rise - why would the charterer not accept the ship a little late? 99 percent of the time they will.

In the above situation the charterers could be happy for a number of reasons...

1. The market has dropped. But alas - this is not enough. For this to be good for the charterers we need the market to drop but we also need another ship! On many occassions when a ship does miss cnacelling - there are no alternative ships due to the prompt nature of the situation.

2. Maybe the charterer has had trouble accumulating cargo at the loadport. There may also be congestion at the loadport...for all these reasons it is advantageous for the charterer is the ship runs late. They will still accept the ship but they will limit possible demurrage claims due to making the ship wait before loading.

Hope this makes sense. Any questions just shoot (from the hip)!

Thanks to all for the contributions.

Brgds
VS

7 comments:

  1. Dear VS, good evening.

    About this very subject, I would also point the following:
    3. Assuming that a BALLAST BONUS was agreed (although not mentioned in your statement), charterer would have the right to be released from such payment (or reduce it a lot), once the owner did not comply with lay can. But notwithstanding this situation, much probably Charterers would have no problem to keep that ship for their cargo, and this comes from the fact that it wouldn't be advantageous for the Owner to get another cargo nor to this Charterer to get another ship with such a short notice.
    Hope this makes sense.
    Thanks a lot for sharing your knowledge... I've read your last Book (2 x 1), and found them REALLY good. Congratulations for this great blog!
    Agw, w/p, hope you can keep on sending these queries.

    All the best,

    Luis

    ReplyDelete
  2. Hello Luis

    Thanks for stopping by and many thanks for being a fan of the blog and books.

    A ballast bonus is only payable if the ship actually delivers. So I would assume in this case the shipowner will not attempt to claim anything. But yes you are correct - at such short notice you would expect that mostly the fixture is kept intact!

    Cheers
    VS

    ReplyDelete
  3. I should explain more

    If the ship is late for cancelling the charterer can (if they see fit) refuse to accept delivery and in the process cancel the contract.

    ReplyDelete
  4. Can shipowner cancel the contract or witraw from it if the delay is caused by the charterer (for example: the goods intended for loading are not ready)? The delay prolonged the time beyond stipulated laycan, and the shipowner has next contracted laycan for another charterer so he should cancel this C/P to acheve the next one.

    If this is the case, does the shipowner has a right to charge the charter the deadfreight or some kind of compensation for losing time due to chartere's delay?

    Thanks in advance.

    ReplyDelete
  5. The Virtual ShipbrokerSeptember 14, 2011 at 2:54 PM

    good question

    i will make a new post!

    ReplyDelete
  6. Hey .. i am totally new to the shipping industry.. well if the ship owner misses the laycan, and when he reaches late at the loadport , there is no berth availability. So does the charterer have to pay the demurrage fr this waiting time ?

    ReplyDelete
  7. Hey! Can you tell me the implications of the clause
    "Laycan: Prompt"? Would prompt in this case mean that the ship HAS to be available at the start of the laytime or within reasonable period?

    ReplyDelete