Reading the Laytime Balance using Different Laytime Allowed
Alison Lindsay
2 days ago
Learn how to calculate laytime allowed in shipping, including reversible laytime, port-specific allowances, and operational rates. Understand cumulative vs. equal distribution for accurate time management.
Chapters
00:34
Laytime Calculation Intro
Introduction to laytime calculation and reversible laytime.
00:51
Reversible Laytime Explained
Understanding reversible laytime and its application.
02:19
Laytime Entry Levels
Exploring the three levels for entering laytime allowed.
03:38
Port Specific Laytime
Port-specific laytime and calculation based on operational rates.
04:05
Operational Rate Calculation
How operational rates and cargo quantities affect laytime.
06:30
Laytime Distribution Options
Understanding cumulative and equal distribution of laytime.
07:18
Adjusting Port Laytime
Adjusting port-specific allowed laytime.
08:34
Distribution View Comparison
Comparing cumulative and equal distribution views.
Transcript
00:00
In this video, we will discuss the lay time balance calculation in the pills and port calls on the main page of the claim and within the demurrage statement, your first pill shows a time balance, which is the total cumulative time on this claim.
00:18
If you hover over any of these numbers, you can see it converted into days, hours or days hours, minutes.
00:25
This is a simple case where I have a total of seven and a half days allowed on my entire claim.
00:33
I don't have any details within the port calls themselves.
00:37
I'm showing cumulative lay time.
00:39
So my first starting pill shows seven and a half days after the first port call.
00:45
You can see I still have that 7.5 days allowed.
00:49
I use seven days at this port and so I have 12 left over.
00:53
This next pill in between port calls shows you that balance.
00:57
Now, at the next port I have starting only 12 hours left.
01:02
I use one day and my balance becomes negative.
01:05
I've used up, 12 more hours than I was given.
01:09
And that's shown in the next pill.
01:10
that 12 hours is now negative.
01:12
So my allowed time on the last port is zero.
01:15
I use one day.
01:17
So my balance at that port is negative one day.
01:21
But I need to add that to the negative 12 hours I had going into that port call.
01:27
So my total becomes negative one day in 12 hours and that's how much I would pay for it to merge.
01:34
If I download the statement, either the timeline or event, I can see that same 7.5 allowed lay time on my summary.
01:44
That's my cumulative time on the claim.
01:47
I can see how much time total I used and that balance of negative one and a half days.
01:53
I can also see details per port call.
01:56
I see that I had seven and a half days after, the first port call.
02:01
I used seven days and so I have a balance of 12 that carries over to the next port call that 12 hours.
02:09
I use one day.
02:10
My balance is negative 12.
02:11
And lastly, I have no extra time going into the last port call.
02:16
I use one day and so the balance at that port is negative one day.
02:20
I add that to the negative balance from the last port and I get a total shown in my summary of, negative 1.5 days.
02:29
If instead I choose equal distribution, my screen looks a little bit different now.
02:34
My total should be the same and it is negative one and a half days, but my allowed time per port looks different and I'm no longer looking at really a running balance, I give myself an equal amount of time per port, in this case two and a half days.
02:52
And I calculate the balance after each port call.
02:55
So my first port call takes seven days.
02:58
I have a negative balance at the end, four and a half that's carried over to this pill.
03:04
Now at the second port I have that same two and a half days, one third of my total time allowed.
03:09
Since I have three ports, I use one day and I'm left with a positive balance of one and a half days.
03:16
So that number actually adds to this negative number to leave me negative three days after this port.
03:23
And then my final port I'm allowed the same two and a half days.
03:26
I only use one.
03:28
So I have a positive amount, one and a half that I can add to this to get a total of negative 1 day and 12 hours.
03:36
If I download the statement, I will see a similar thing.
03:40
I have the same summary I saw before.
03:43
But if I go into each port, my time allowed per port is now the equally distributed time allowed two and a half days.
03:51
And so I have a negative four and a half days after the first port.
03:55
I have a positive one and a half days balance, the second port and a positive one and a half days third port.
04:04
I add those three times together to get 1.5 plus 1.5 minus 4.5.
04:12
My total of negative, 1.5 days.
04:16
The calculations become slightly more complicated when you consider two different allowed lay times shown in the claim.
04:23
Within the port call here, I'll keep the seven and a half days, but I'll go into a port and I'll add an operational rate per hour.
04:32
Let's say your contract says you get an extra 1,000 barrels per hour to load.
04:40
In that case, it's an extra 55 hours on this port.
04:43
Now I can see I get additional time.
04:46
I'm still on equal division.
04:49
So it just took that 55 hours and it spread it between the three.
04:53
If I switch back to cumulative, I will just see the total now increase to 9 days and 19 hours.
05:00
But everything else is pretty much the same.
05:02
In this case, just now, I have a positive 19 hours.
05:05
Since I've added more time, if I go back into the port and I add port specific allowed lay time, it becomes a little bit more complicated.
05:16
Let me remove that 55 hours.
05:19
These are generally intended for canals or transits where the late time allowed applying to this port is different than the reversible allowed lead time on the rest of the claim.
05:34
So let's say I get one day at this port Now you'll see my starting time balance has reverted back to this 7.5.
05:43
I'm not including that one day because this is showing your cumulative time throughout the claim.
05:49
But on this port I see I have one day allowed and I use the seven days so I have a negative six balance on this first port call.
05:58
However, after this port call, my cumulative pill still shows one day and 12 hours because I had seven and a half days I used seven plus I got an additional one day for this port.
06:14
So my running total at this point is one and a half days.
06:18
After the next port where you use one day your time balance is 12 hours.
06:22
And then the last port you use another day, you now have a negative 12 hours balance.
06:27
If you look within these ports it is using the cumulative time allowed the seven and a half days on the port call.
06:36
So you had seven and a half, you used one, your balance was six and a half.
06:39
Then that six and a half carries down.
06:41
Use another, you have five and a half but you have this negative six.
06:46
From here you need to add together allowed to get your total.
06:49
So it becomes a little bit more complicated.
06:52
That's why we recommend only using that portion port specific time allowed in cases where that port is unrelated to the other ports.
07:01
If, for example, you have a calculation where you get one day additional per port, what I would do is I would take it out of the port call and I would add in this case three days to my total time allowed to make it ten and a half days total.
07:16
And then you can keep it simple cumulative or equal distribution.
07:21
If however you do need to keep it within the port call, let's And I download the statement.
07:26
Here, I can see my time balance matches up and these match the pills.
07:32
The allowed lay time is only the cumulative number.
07:36
It's excluding that port specific time that's going to be shown later in the page.
07:41
The time balance is that final correct number.
07:45
If I multiply that time balance by my demurrage rate, if I had one, you would get your total demurrage number.
07:51
Here at my first port I see the same thing I was looking at before.
07:55
I have one day allowed lay time, but I used seven days so I have a negative six.
08:02
Then my next port I get the full cumulative time.
08:05
In this case seven and a half days.
08:08
I use one.
08:09
I have six and a half remaining.
08:10
That six and a half is carried down.
08:12
I use one more.
08:13
I have five and a half.
08:14
Balance That five and a half is added.
08:17
to this negative six to get my total time balance of negative half a day.