news Operational risk Charter Party Disputes
Laytime exceptions for draft survey and terminal breakdowns Dec 11, 2025 3 min read Summary prepared by Prokopios Krikris, FCIArb, Arbitrator This arbitration addressed a common topic of disagreement. The contract provided for suspension of laytime during riots, strikes, etc., or “any cause whatsoever beyond the control of charterer”. lt was held that laytime continued to run during delays for insignificant routine maintenance of shore loading equipment. Moreover, on the facts, the tribunal found that Charterers cannot exclude time for draft survey and noted that " it certainly must be considered proper operational procedure and management that Owners tried to ensure the appropriate loading progress and cargo intake". If the contract is silent on whether intermediate or initial draft survey is excluded, parties typically disagree. There are several LMAA Awards addressing this matter. The events referred to in this dispute are described as breakdowns. They are minor in nature; the Port Log/Statement of Facts lists the following interruptions: a) delay account electrical problem --35 minutes, b) delay account tightening belts--30 minutes, c) delay account washing impact rollers- 15 minutes and d) delay account reclaimers overloaded- 10 minutes The tribunal noted that Clause 4 did not focus on insignificant problems as enumerated above, but refered to “riots, strikes, lockouts,” “accidents to machinery,” “fire, floods, frosts, fogs, storms”. To bring minute loading delays, which, by their descriptions were clearly matters of routine maintenance (or more correctly the lack thereof), under the provision “any cause whatsoever” or the ejusdem generis rule was, in the tribunal’s opinion, neither justifiable by the language of the contract nor in the spirit of the commercial enterprise. Clause 4 refers to “any cause whatsoever beyond the control of the Charterer,” but there has been no evidence that the events were beyond Charterers' control.
Laytime exceptions for draft survey and terminal breakdowns
Charter Party Disputes
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