Ship Agent's Duties

by Will Charpentier

A ship that sits in port makes no money. The ship agent’s duties ensure that port visits are as
brief as possible to maximize the ship’s profitability for its managers and owners. From the
time the agent receives notice of the ship’s pending arrival until the ship is once more
underway, the ship agent’s makes all the arrangements for the ship and its cargo.
Prior to Arrival
Prior to a ship's arrival in port, the ship agent's duties begin with pre-arrival planning for the
ship's port call. These arrangements begin when the agent notifies the port of the ship's
pending arrival. Other arrangements center on the ship's cargo manifest, with particular
attention to the goods to be off-loaded during the port call. If the cargo was transported in
highway containers, gantry cranes remove the containers. If the cargo is liquid, it's removed
at a pier equipped with pump-out facilities.
Approaching the Harbor
The ship's agent notifies consignees of the date and time the ship will discharge cargo, if the
shipping contract requires notice. The ship's agent notifies the local bar and harbor pilot's
association to arrange for pilots, who will board the ship as it approaches the entry to the
channel or harbor to advise the captain on conditions and local requirements. The ship agent
also arranges for tugs to assist with docking and undocking.
Upon Arrival
A ship agent advises local customs personnel of the arrival of freight, so the freight can clear
customs with dispatch. The ship agent also arranges for "booked services" such as
longshoremen to unload cargo and for trucks to move containerized freight from the port to
the next mode of transportation to the final destination.
If the ship has inspections or certifications due when the ship is in port, the ship agent notifies
the local government authority or the ship classification society such as Det Norske Veritas or
the American Bureau of Shipping to schedule the inspection. The ship agent also arranges
any required repairs.
Reloading
When the ship has cargo to be reloaded following cargo discharge, the ship agent ensures the
cargo is present at the port and, insofar as possible, ensures it's as described on the cargo
manifest. The ship agent checks the conditions of transportation specified on the bill of lading
to guarantee the cargo reaches its destination by which method of travel, and that the cargo is
to travel on a particular ship. The ship agent also verifies the condition of the cargo and the
projected date of arrival at the final destination.
After Departure
Following the completion of cargo and port operations, the agent confers with the ship's
master to arrange for departure from the port. The ship agent makes departure arrangements
with the ship’s master and pilot’s association to obtain pilots. The agent also exchanges the
results of inspections and certifications with the ship management company. Following
departure, the agent collects any bills due from consignees who received freight and any
penalties from the ship management company for damage or late delivery. The ship's agent
then disperses these funds.
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Laytime calculation in a voyage charter party agreement for cargo ships employment

Purpose, stages in calculations

The purpose of laytime calculations is to determine whether on completion of loading or

discharge operations despatch is payable to the charterers or demurrage is due to the owners.

The port agent is normally responsible for calculating the sum due and rendering accounts,
but the master should also keep a tally of laytime used as he may be required to confirm the
agent’s figures. The master should also be aware, at any given moment, of whether laytime
has commenced, is still running, is interrupted or has expired. Laytime calculations are
recorded on a laytime statement.

There are seven stages in a laytime calculation:

1. Read relevant clauses in the charter party.

2. Obtain Statement of Facts from agent.
3. Determine duration of laytime allowed.
4. Establish time of commencement of laytime.
5. Allow for interruptions to laytime as per the charter party.
6. Establish time of expiry of laytime.
7. Calculate despatch or demurrage payable.

The Statement of Facts is an extract from the port operations log kept by the charterer’s
agent, and contains times of all relevant events, including:

• arrival of ship;
• tendering of Notice of Readiness;
• commencement of laytime;
• commencement of cargo operations;
• periods of suspension of laytime, with reason in each case (so that risk of stoppage can be
apportioned);
• termination of cargo operations;
• termination of laytime.

The Statement of Facts should be approved by all parties involved (master, stevedore, agent,
etc.), and will normally be presented by the agent to the master for his signature and return;
the master should retain a copy. It is important before signing to compare the times stated
with those recorded on board the ship, since the charterer’s agent may have obtained
inaccurate times from his terminal supervisor, or may, for example, have recorded a period of
rain in the vicinity of his office that did not affect the ship for the same period. For a ship on a
demurrage rate of USD24,000 per day, 6 minutes of time on demurrage is worth USD100; it
is therefore important that all times are accurately recorded.

The Statement of Facts is used by the agent in drafting up the Laytime Statement, from which
any amount of demurrage or despatch money payable will be calculated.

The duration of the laytime allowed depends on whether the laytime is:

• definite, e.g. “2 running days”;

• calculable, e.g. where there is a given tonnage of cargo and a given rate of loading or
discharging; or
• indefinite, e.g. on “FAC” (“fast as can”) terms - which are unusual.

Where calculable, the allowed laytime for the operation involved (loading or discharging)
should be calculated to the nearest minute.

Interpretation of the contract laytime terms should be in accordance with the law governing
the contract (which is determined from the Jurisdiction Clause), or, if expressly provided for,
the internationally recognised Voyage Charter party Laytime Interpretation Rules 1993 . As a
result of court rulings, definitions of certain laytime expressions under English law differ
from those given in the Laytime Interpretation Rules.