Maritime Questions › Charter Parties Master
On arrival at a loading port, you find the berth is occupied and the vessel must wait at anchor for 36 hours. Under the voyage charter, laytime has started. Describe when and how to issue a Letter of Protest.
A. LETTER OF PROTEST — WHEN AND HOW: A Letter of Protest (LOP) is a formal written statement preserving the master's/shipowner's rights by documenting a disputed event, reservation, or complaint against another party. WHEN TO ISSUE A LETTER OF PROTEST: (1) CARGO DAMAGE OR SHORTAGE: when cargo is received in apparent bad condition (see B/L clausing); on discharge, when cargo is found damaged and the receiver might claim against the vessel; (2) BERTH NOT READY: if the vessel arrives ready to load/discharge but no berth is available — issue LOP to charterer. This is critical for laytime purposes: the NOR may start laytime running even when waiting at anchor (if the C/P is on an "WIBON" — Whether In Berth Or Not — basis). The LOP preserves the claim that any delay was the charterer's fault; (3) CARGO OPERATIONS DELAYS: crane breakdowns (charterer's equipment), weather stoppages, or other interruptions affecting loading/discharge — issue LOP to document each event; (4) HAZARDOUS CARGO: if ordered to load cargo the master considers unsafe or improperly documented; (5) UNSAFE PORT: as noted above; (6) DANGEROUS ORDERS: any order that the master believes is unsafe, illegal, or in breach of the C/P. FORMAT: (a) Addressed to: the charterer's agent or the party at fault; (b) Vessel name, date, position; (c) Specific event: "On arrival at Rotterdam berth No.6 at 08:00 on [date], the berth was found to be occupied and the vessel was required to anchor at position [X]. We hereby note our protest and reserve all our owners' rights and remedies in respect of all delays and losses arising therefrom."; (d) Signed by Master; (e) RETAIN A COPY.
B. Letters of Protest are only valid if signed by a notary public in the country where they are issued. A letter signed only by the master has no legal standing.
C. A Letter of Protest only needs to be issued once per voyage. A single general protest at the beginning of the voyage covers all subsequent events.
D. Issuing a Letter of Protest admits that the event was the vessel's fault. Masters should avoid LOPs as they can be used against the vessel in cargo claims.
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A. CHARTER PARTY TYPES — MASTER'S OBLIGATIONS: (1) VOYAGE CHARTER: the shipowner hires the vessel to carry a specific cargo from Port A to Port B. Charterer pays freight for the cargo (per tonne or per unit). The master works for the shipowner. The shipowner provides crew, fuel, and operates the vessel. The charterer provides the cargo. Master's authority: the master operates under the shipowner's instructions within the C/P terms. Key obligations: present the vessel on the laydays (the agreed window for vessel presentation); load the cargo and proceed on the voyage; issue Bill of Lading when requested by the shipper; (2) TIME CHARTER: the shipowner hires the vessel (with crew) to the charterer for a specified period. The charterer directs the employment — which ports, which cargoes. The shipowner continues to pay crew wages and maintain the vessel. The charterer pays for fuel (bunkers). Master's position: the master receives commercial instructions (where to go, what cargo to load) from the charterer. But the MASTER'S OBLIGATION to the shipowner for the vessel's safety and legal compliance remains. The master must follow charterer's instructions UNLESS they would: endanger the vessel or crew; violate the law; take the vessel outside the trading limits defined in the C/P; (3) BAREBOAT/DEMISE CHARTER: the charterer essentially becomes the shipowner for the charter period. The charterer provides the crew, operates and maintains the vessel. The original owner loses operational control. The master in a bareboat charter works FOR the charterer. ISM: under bareboat charter, the ISM Company may transfer to the bareboat charterer.
B. Under any type of charter party, the master must follow all charterer's instructions without question. Commercial obligations always take priority over safety considerations.
C. Bareboat charter and time charter are the same — the difference is only in the payment terms. The master's authority is identical under both arrangements.
D. Under a time charter, the master is employed by the charterer and owes no further duty to the original shipowner during the charter period.
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A. DEMURRAGE AND LAYTIME — MASTER'S KNOWLEDGE: LAYTIME: the period of time agreed in the C/P for the charterer to load/discharge cargo without additional charge. The laytime clock typically starts when: the vessel is at the berth; the master has tendered a Notice of Readiness (NOR); the vessel is in all respects ready to receive/discharge cargo. NOR: the master (or agent) formally notifies the charterer that the vessel is ready. Tender the NOR in writing as soon as the vessel is ready — this starts the laytime clock. LAYTIME CALCULATION FOR THIS SCENARIO: 5 WWD = 5 weather working days. "Weather working days" exclude: Sundays, public holidays, and periods when weather prevents work. Rain preventing loading: a "weather working day" loses time only during periods when weather PREVENTS work. If it rains for 2 days preventing loading — those 2 days are NOT counted as laytime. "Crane breakdown" — this is typically counted as laytime running: equipment failure on the part of the charterer (their crane) does not stop laytime. DEMURRAGE: when laytime expires and cargo is not fully loaded/discharged — the charterer pays DEMURRAGE to the shipowner. Demurrage is a fixed daily rate specified in the C/P (e.g., USD 25,000 per day). Demurrage compensates the shipowner for the vessel being held beyond the agreed time. In our example: if effective laytime is 5 days and loading took 7 days with 2 rain days — net counting laytime = 5 days (rain excluded) + 2 rain days not counted = 5 counting days used. BUT the crane breakdown days count as laytime — so if 2 days rain excluded but 2 days crane breakdown counted, the 7-day loading = 5 countable laytime days (no demurrage due). DESPATCH: if loading is completed BEFORE laytime expires — the charterer earns despatch (typically half the demurrage rate).
B. Demurrage is only payable if the vessel is deliberately delayed. Unavoidable delays such as rain and equipment failure do not trigger demurrage.
C. Laytime begins when the vessel anchors in the port. The Notice of Readiness is a formality and does not affect the laytime commencement.
D. If loading takes longer than the agreed laytime, the extra time is simply added to the voyage and the freight rate is adjusted. No separate demurrage payment applies.
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