pi_circular Compliance & regulationOperational risk West of England
Notices of readiness in a nutshell Defence Guides A Notice of Readiness (“NOR”) is a notification by the vessel that she is ready to start the charter service (upon delivery) or is ready to load or discharge cargo. Giving an NOR has two purposes: (i) to inform the charterers that the vessel is at their disposal; and (ii) to start the running of hire or laytime. Disputes often occur in relation to the validity of a NOR, in particular under voyage charter parties. 1) The general requirements for a valid NOR: There are three requirements to be met in order to tender a valid NOR: a) The vessel must have reached the agreed place (being an “arrived ship”); b) The vessel must be “physically ready”; and c) The vessel must be “legally ready”. a) The vessel must have reached the agreed place: In order for the vessel to be an “arrived ship”, the NOR must be tendered when the ship has arrived at the contractual place of delivery, loading or discharging. The charter party will usually state where the vessel must be before a valid notice of readiness can be tendered. The ship must be at the immediate and effective disposition of the charterer, having come to rest at the place at which she can be described as an “arrived ship”. Where that place is depends upon the terms agreed in the charter party. In the most simple case, the place will be the name of a port, dock or a berth. In voyage charters in particular it is sometimes hard to determine the place when the charter mentions both the port and a berth. It is always a matter of construction whether the agreed destination is the port or the berth. For example, a charter which describes the destination as “one safe berth, London” is a berth charter, but one which describes the destination as “London, one safe berth” is a port charter (the reference to a berth is to be construed as a safe berth warranty). In a berth charter, owners can only tender the NOR when the vessel has actually berthed. In the case of a port charter when no berth is available, the vessel must normally have reached a position within the port where waiting ships usually lie. In this regard, the customary waiting area does not have to be “the commercial area of the port”, but can be the “legal, fiscal and administrative area of the port”. However, if the customary waiting area is outside the limits of the port, then no valid notice of readiness can be served. However, some charters (Gencon for example) extend the waiting place beyond the port. The above basic principles can however be varied by the terms “whether in berth or not” (“WIBON”) or “whether in port or not” (“WIPON”). The phrase “whether in berth or not” converts a berth charter into a port charter and ensures that under a berth charter party the NOR can be given as soon as the ship has arrived within the port’s commercial area. However, this is only when the berth is inaccessible due to congestion and not bad weather. (This is because the charter party puts the risk of navigational delays onto owners and of commercial delays onto charterers.) It is thought that the phrase “whether in port or not” will mean that an NOR can be tendered outside port limits as long as the ship is at the port’s usual waiting area. Also, some voyage charters commonly contain other exceptions and will for instance state that the commencement of laytime will start “Whether Customs Cleared or Not” (WCCON) and “Whether in Free Pratique or Not” (WIFPON). Defence Guides b) The vessel must be physicall
Notices of readiness in a nutshell
West of England
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