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The charterers liability specialists

Claims Service Letter 5 June 2011 www.charterama.com

Laytime Notice of readiness


Laytime is often an issue which seems to be reason for disputes Legal readiness means that all papers
between Charterers and Owners. And more specific: when does laytime necessary for the commencement of
commence and when is a NOR valid. loading or discharging must be in order.
If charterers have to arrange for a certain
document before the vessel can load or
discharge, a valid NOR can be tendered
At common law the vessel has to tender a As discussed in our service-letter 3, if all other requirements have been met.
NOR at her first load-port (or at least notify frequently the C/P contains a provision If such document would prevent the
charterers that the vessel is ready to load) allowing the vessel to tender a NOR at a vessel from proceeding to the specified
but frequently the C/P requires that a NOR different place if the specified destination destination charterers have to act with
shall be tendered at the following ports of cannot be reached because of congestion. reasonable dispatch in order to obtain
call (load and/or discharge ports) as well. In this respect the WIBON and WIPON that document and to enable the vessel to
provisions are frequently incorporated. tender a valid NOR.
A Notice of Readiness (NOR) is valid
when the following requirements have READINESS OF THE VESSEL Obtaining Custom Clearance or Free
been met: Pratique are usually formalities (varying
The vessel must have arrived at the The vessel needs to be ready in all respects from port to port) which will not prevent the
C/P destination to load or to discharge. This does not only vessel from tendering a valid NOR. However
The vessel must be ready to load apply to the physical condition of the if it is not possible for the vessel to meet
(or discharge as the case might be) vessel but for example also to documents (one of) these requirements (f.e. because of
Any specific requirements which may necessary to allow the vessel to load or an infectious disease on board of the vessel
have been incorporated in the C/P discharge. causing that quarantine restrictions have to
be imposed on her) the vessel will probably
The specified destination has been Physical readiness means that: not be at charterers disposal and no valid
discussed in previous articles (see our All cargo-spaces intended for loading NOR can be tendered.
claimsletters 2 and 3). To summarize, (or discharging) need to be ready for
under a berth C/P the vessel has arrived that particular cargo. C/Ps frequently state that the vessel is
at the agreed destination when she is Hatches and loading-gear (if applicable) allowed to tender her NOR Whether
alongside the berth named in or to be or other equipment of the vessel Customs Cleared Or Not (WCCON)
nominated under the C/P. Under a necessary for the cargo-operations must and Whether In Free Pratique Or Not
Port C/P the vessel has arrived when be ready to put into operation. (WIFPON). It is thought that these
she is within the port-limits and at the provisions should mean that a valid NOR
immediate and effective disposal of the If the vessel has a deficiency or can be tendered regardless of whether the
charterers. This would be at the berth shortcoming which will not affect the accompanying formalities have been fulfilled
in case she proceeds there directly or cargo-operations and can be made good or not, however no reliance can be placed
alternatively usually the place where before it will affect vessels performance, on these provisions if no Free Pratique or
vessels wait for a berth to become this will not prevent the master from Custom Clearance can be obtained because
available. tendering a valid NOR. of a problem on board of the vessel.

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The charterers liability specialists

Claims Service Letter 5 June 2011 www.charterama.com

This would imply that these provisions that charterers waived their reliance on a If a valid NOR will be tendered outside
do not have any added value. They does premature NOR at the time loading or these contractual hours (f.e. at 03.00 hrs
not change the common law position as discharging actually started, upon which whereas the office- hours run from 08.00
described here above. laytime commenced in accordance with hrs to 17.00 hrs) this NOR will become
the C/P. So in this case (The Happy effective upon opening of the office at
ANY SPECIFIC C/P REQUIREMENTS Day) the invalid NOR (which was 08.00 hrs and laytime will start to run in
tendered premature) took effect at the accordance with the C/P.
The C/P may say something about the commencement of discharge.
format of the NOR. Further it may dictate Equally a valid NOR which has been
how, to whom and when it should be given. A similar result was achieved in a case tendered before vessels laycan does not
whereby the subject cargo was overstowed become invalid because of this. Also here
Any failure to comply which these by another cargo and a NOR was given the NOR becomes effective at the earliest
requirements does not automatically whilst the subject cargo was not accessible possibility under the C/P.
imply that the NOR is invalid. This would (The Mexico I). When the cargo became
require clear and express wording or it accessible no new NOR was tendered. So So contrary to circumstances under which
should be reasonable to infer that such also here no valid NOR was tendered at an invalid NOR has been tendered as
NOR must be invalid. For example in all. Laytime did not start earlier than at described in the previous paragraphs,
case the C/P requires that the NOR should the commencement of discharge which here it will not be necessary to tender a
be tendered to charterers whereas it has was accepted by charterers. This was new NOR.
been given to owners agent at the relevant about two weeks after a valid NOR could
port, such NOR could well be invalid. On have been given. For further information please contact:
the other hand if in that case the NOR was Gerald Buist
given to a charterers agent or to shippers, This is quite a complicated subject and +31 10 7410741
the NOR might be considered as a valid in order to avoid disputes owners are gerald.buist@charterama.com
one. Much will depend on the facts of the advised that in case of doubt its safer to
matter in question. tender another NOR. On the other hand This letter has been drafted with the utmost care on basis
charterers (and their agents) should keep of information which is believed to be correct but which
AN INVALID NOR in mind not to accept a NOR as a matter cannot be guaranteed by Charterama.
of course in case they have doubts or no
Here above it has been set out which actual knowledge about its validity.
requirements have to met to enable the
vessel to tender a valid NOR. In short, the A NON-CONTRACTUAL NOR
NOR is not validly tendered if the vessel
is not ready or in case the NOR has been A different situation will arise in case a valid
given premature (before arrival at the C/P NOR (containing a true representation of
destination). vessels position and readiness) has been
tendered outside a time-spread within
An invalid NOR does not become valid which the NOR should have been tendered
if the preceding requirements have in accordance with the C/P.
been met as yet. A new NOR should be
tendered when the vessel actually is in a For example the C/P may state that a NOR
position to tender a valid NOR. should be tendered within office-hours. In
the first place the office-hours at the port
However if no such fresh NOR has been in question will have to be established on
tendered (which means that no valid NOR basis of the local situation and the C/P as
has been tendered at all) it has been held a whole.

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