Public Dock Documents

This LEAP Public Dock list, the criteria for creating the list, and the LEAP Public Dock Clause provide a framework by which parties can more clearly document their demurrage liability for marine transactions in North America and the Caribbean.  LEAP and the Public Dock List Committee believe that providing these documents will reduce confusion, inefficiency, and risk among parties in the waterborne trade of oil and products.

These documents are provided by LEAP for the free and voluntary use of market participants.  LEAP has a Standing Committee intended to maintain the Public Dock list and any necessary changes to these documents.  For information about joining the Standing Committee please check out our website or contact .

Criteria

For a Terminal to be considered a Public Dock for purposes of the LEAP Public Dock clause, the following must be true:

  • The Terminal is owned and operated by a governmental authority OR a third party company

AND ALL of the following criteria are also true:

  • The Terminal has a strict policy of berthing vessels in a first come, first served basis.
  • There are two (2) or more companies holding Product inventory at that Terminal.
  • Terminal owner/operator is NOT in the business of purchasing and selling oil or oil products.
  • Terminal owner/operator is NOT an affiliate of a company in the business of purchasing and selling oil or oil products.

Public Dock Clause

Where the parties agree in writing that the Public Dock clause applies, and the Transaction occurs at a Terminal which is on the Public Dock list as available on the Leadership for Energy Automated Processing (‘LEAP’) website at http://www.energyleap.org/publicdockclause/public-dock-list/, in cases in which delays are directly attributable to berth congestion, the following shall apply. Either:

  • Option A: Laytime or demurrage, if vessel is on demurrage, shall not commence until Vessel is All Fast at the dock.
  • Option B: The delay due to congestion shall count at one-half (1/2) laytime, or, if on demurrage, one-half (1/2) the demurrage rate.
  • Option C: Notwithstanding the above clause, laytime shall run and demurrage shall be calculated in accordance with the laytime and demurrage provisions in the contract. The first 48 hours of laytime while awaiting the berth from the tender of NOR shall be for the account of the Vessel Party. Demurrage incurred due to waiting time excess of 48 hours shall be for the account of the Terminal Party.

If the parties do not explicitly agree to an Option, Option A shall apply.

The above clauses, when edited for market participants’ needs, can be inserted into General Terms and Conditions, Confirmations, and other oil trading-related correspondence to document and clarify the Buyer and Seller’s responsibility for demurrage.

LEAP acknowledges that parties have many options to negotiate and document the demurrage liability in their oil trading agreements. LEAP believes that the above options (A, B, and C) are helpful templates that could serve to clearly document demurrage liability for parties to oil trades delivered by marine modes of transportation. Other options may be available to market participants, and the above options should not be seen as exclusive.