Statement on the Uncertainty and Risks in Bulk Vessel Shipping

In bulk shipping operations, vessel owners often agree with the LAYCAN requested by customers in order to secure bookings. However, the actual LAYCAN is often contingent on whether the shipowner can assemble sufficient cargo within a short timeframe to schedule the voyage. This introduces considerable uncertainty into the shipping process.

If we are unable to ship on time due to our own reasons, the shipowner is entitled to charge dead freight or demurrage fees.

Conversely, when the shipowner fails to meet the agreed LAYCAN, their typical response is: “If you cannot accept the delay, you may choose not to ship.” However, by that stage, alternative shipping options are usually unavailable, leaving us with little choice but to accept the delay. This can significantly disrupt our planning and may even impact delivery to our customers.

Therefore, we must exercise heightened caution when arranging bulk shipments—carefully assessing potential risks and building in a reasonable time buffer to mitigate losses caused by such uncertainties.