Arbitration- conflicting laytime weekend exceptions

Summary prepared by Prokopios Krikris FCIArb, Arbitrator

Inconsistencies or contradictions between terms due to relaxed draftsmanship often arise in charterparties as seen in practice. There is ample authority setting a guidance on how to address construction issues in such instances.

In this arbitration, the question of the Owners' right to claim demurrage depended upon the interpretation that was to be given certain clauses of the charterparty.

Clause 18 stated: “cargo is to be loaded …. at the rate of 500 metric tons per workable hatch per weather working day of 24 hours. Sundays and Holidays excepted unless used ….”

Clause 19 stated: “At load port time from 5:00 PM Friday …. until 8:00 AM Monday …. not to count unless used”.

Moreover, Clause 23 stated: “Owners to make available 2 workable holds and hatches for this cargo ….”

Clause 24 provided: “Charterers' privilege to work two hatches at all times ….”.

The decision

No one takes pride in the authorship of these clauses for in no way can they express a clean-cut agreement. We have concluded that Clause 19 should prevail over Clause 18 in that it is a specific term that excludes Fridays from 5:00 PM to Monday at 8:00 AM from the calculation of laytime unless used.

Load port laytime provides for 1000 metric tons to be loaded per weather working day of 24 hours and time not to count from 5:00 PM Friday to 8:00 AM Monday unless used.

Note: this is for information purposes only.