Tendering NOR_ Avoiding Mistakes and Challenges

Common Challenges and Mistakes When Tendering Notice of Readiness (NOR)

Tendering a valid Notice of Readiness (NOR) is a critical step in the chartering process. Mistakes in this process can lead to disputes, delays, and financial losses. Below are some common challenges and errors to be aware of when tendering NOR.

1. Improper Timing

Timing is crucial when issuing NOR. A premature NOR can be deemed invalid, causing unnecessary delays and disputes.

• Before the Agreed Date: NOR should not be tendered before the commencement date stated in the charter unless the Charterers have provided prior written agreement.
• Before the Vessel is Ready: Tendering NOR when the vessel is not fully prepared can invalidate the notice, leading to delays in laytime commencement.

2. Incorrect Location

The location where NOR is tendered is just as important as its timing.

• Berth or Customary Anchorage: NOR should be issued when the vessel is either securely moored at the loading or discharge berth or anchored at the customary anchorage of the port.
• Failure to Anchor Properly: If the vessel is not at the designated or customary anchorage area, disputes may arise over the validity of the NOR.

3. Readiness Conditions Not Met

The vessel must be fully ready in both physical and legal aspects before NOR is tendered.

• Physical Readiness: This includes completing necessary inspections and ensuring all equipment is operational.
• Legal Readiness: The vessel must have obtained all required certifications, such as the U.S. Coast Guard Vessel Examination Certificate for U.S. ports.

4. Issues with Free Pratique

Free Pratique (port health clearance) is an essential requirement in many ports.

• NOR Tendered Before Free Pratique: If NOR is issued before Free Pratique is granted, it may not be considered effective until clearance is obtained.
• Potential Delays: Delays in Free Pratique can lead to disputes regarding the commencement of laytime.

5. Incomplete or Inaccurate Documentation

Proper documentation is essential for an effective NOR.

• Communication Methods: NOR must be communicated through appropriate channels, such as email, radio, or telephone, and should be confirmed promptly.
• Missing Signatures or Documentation: Any missing details in the NOR document can lead to disputes and potential rejection of the notice.

6. Misunderstanding NOR Effectiveness

Even when NOR is tendered, its effectiveness for laytime or demurrage purposes depends on specific conditions being met.

• Proper Mooring or Anchoring: Laytime typically does not commence until the vessel is in the proper location and ready in all respects.
• Contractual Requirements: The effectiveness of NOR is subject to the terms outlined in the charter party agreement, which must be carefully reviewed and adhered to.

Conclusion

Understanding and avoiding these common mistakes when tendering NOR can prevent disputes, reduce delays, and ensure a smoother chartering process. Charterers and shipowners must carefully review contractual obligations, confirm the vessel’s readiness, and ensure proper documentation to avoid costly errors.