ASBATANKVOY 2025: Modernizing a Maritime Standard and Reframing “Once on Demurrage, Always on Demurrage”

From 1977 to 2025 — Evolution of a Chartering Benchmark

Since its introduction in 1977, the ASBATANKVOY voyage charterparty has been a foundational document in tanker chartering, prized for its clarity, fairness, and adaptability across diverse markets and operations. It brought uniformity to chartering terms during a period of exponential growth in the oil trade and remained a dominant form through the decades.

However, with the rise of complex logistical scenarios such as Ship-to-Ship (STS) transfers, anchorage congestion, performance warranties, and sanctions compliance, the original ASBATANKVOY form became increasingly strained. Many charterers and owners responded by developing proprietary rider clauses or switching to newer forms, such as BPVOY, SHELLVOY, and EXXONVOY.

Finally, the long-awaited update—ASBATANKVOY 2025—has been released.  It retains the structural core of the 1977 form but introduces robust modernizations, especially regarding laytime, demurrage, and the longstanding maritime maxim: “Once on demurrage, always on demurrage.”

We have carefully evaluated the key laytime and demurrage implications as the market shifts from the original ASBATANKVOY to this new version.  Find yourself with more detailed questions?  Shoot us an email at info@haugenconsulting.com. We will be happy to discuss the changes with you and their specific implications for your business.

The Maxim: “Once on Demurrage, Always on Demurrage”

Traditional Rule under ASBATANKVOY 1977

The legal principle “once on demurrage, always on demurrage” means that once laytime expires and demurrage begins to accrue, it continues uninterrupted—regardless of the reason for continued delay—unless the contract explicitly provides otherwise. This rule supports commercial predictability and deters unnecessary delay.

The 1977 ASBATANKVOY form implicitly adopted this approach. For instance:

• Clause 6 (NOR): Once a valid NOR is tendered and laytime starts, there is no provision for suspending demurrage unless clearly exempted.
• Clause 8 (Demurrage): Provides for continuous demurrage, subject only to limited exclusions such as strikes or fires at the Charterer’s facility, which reduce demurrage to half rate.
• No broad interruption mechanisms are included; delays not expressly excluded generally count.

Conclusion: The 1977 form aligns fully with the traditional interpretation—demurrage continues unless specifically excused.

ASBATANKVOY 2025: Qualified Continuity

ASBATANKVOY 2025 preserves the principle but introduces operational refinements that allow for narrowly tailored interruptions to demurrage, focusing on technical and procedural events beyond Charterer control—or tied to Owner deficiencies.

Key clauses introducing this nuance include:

Clause	Update in ASBATANKVOY 2025	Impact on Demurrage Accrual
6(c)	For STS ops, time starts 6 hours after NOR or upon mooring—whichever comes first	Sets a clear rule for STS commencement
7(c)	After hoses are disconnected, if Vessel delayed more than 3 hours waiting for documents or Charterer’s procedures, demurrage resumes after that window	Introduces an administrative pause for post-cargo delay
10(b)	If the Inert Gas System (IGS) fails, cargo ops stop and time is excluded until resumed	Safety-linked technical exception
10(c)	If the Vessel fails to meet the pumping warranty (24 hrs or 100 PSI), time does not count as demurrage	Performance-based Owner accountability
14 (Ice)	Time lost due to waiting for new orders or route diversions may still count as demurrage	Reinforces the maxim where delay is outside Charterer’s fault

Conclusion:  The 2025 form provides a more precise operational approach to demurrage, striking a balance between owner accountability and charterer protection. It refines the application of the maxim while maintaining its default application unless certain conditions are met, including failures in safety systems (such as IGS, etc.), the vessel’s inability to meet performance warranties, and delays in procedures after discharge (with a tolerance of up to three hours).

No Time Bar on Demurrage Claims in Either Form

Importantly, neither ASBATANKVOY 1977 nor ASBATANKVOY 2025 contains a contractual time bar for submission of demurrage claims. Unlike many modern forms (e.g., BPVOY or EXXONVOY), which include strict time bars (commonly 90 days), ASBATANKVOY places no explicit limitation period in the standard wording.

• Practical consequence: In the absence of a time bar clause, demurrage claims may be brought subject only to statutory limitations under applicable law (e.g., 6 years under English law or 4 years under U.S. maritime law).
• Risk allocation: This omission favors Owners, giving them more time to prepare and submit claims. Charterers must rely on prompt reservation-of-rights communications or incorporate riders to limit exposure.

Parties using ASBATANKVOY should consider incorporating a demurrage time bar rider clause if contractual finality and claim certainty are key commercial goals.

Clause-by-Clause Enhancements: More Than Just Demurrage

We have carefully evaluated the key laytime and demurrage clauses and summarized them into an easily digestible format below. 

Clause 3: Deadfreight

• 1977: Triggered by failure to load full cargo, calculated as difference from capacity.
• 2025: Anchored to Certificate of Quantity or Bill of Lading, offering better documentation support.

Key Impact: Improves transparency and enforcement by tying calculations to independent evidence.

Clause 4: Load and Discharge Ports

• Nomination timing shifted from fixed 24-hour rule to “in time to avoid delay.”
• Economic impact of port inefficiency clarified: delays and fuel costs now payable by Charterer.

Key Impact: Reduces disputes by shifting responsibility for inefficient routing onto Charterers.

Clause 5: Laydays and Cancelling

• Introduces a new Subclause 5(b): Owners must notify Charterers of revised ETA if late; Charterers get 48 hours to decide whether to cancel.

Key Impact: Enhances communication and gives both parties flexibility.

Clause 6: Notice of Readiness (NOR)

• Modernized to include STS and anchorage congestion.
• Valid even if vessel lacks free pratique or customs clearance.

Key Impact: Expands NOR validity in real-world conditions—facilitating laytime start.

Clause 7: Loading/Discharging Hours

• Environmental delays (fog, sea state) now count at half laytime or half demurrage.
• Disconnection of hoses and equipment removal now clearly mark laytime end.
• Post-hose administrative delays are counted after a 3-hour grace period.

Key Impact: Reduces ambiguity around berth departure and documents.

Clause 8: Demurrage

• Demurrage still accrues after laytime, with broader clarity on whose facilities count (e.g., consignee or shipper).
• Integrated with STS (via Clause 9) to account for suspension due to safety.

Key Impact: Preserves continuity but provides sharper operational contours.

Clause 9: STS and Berthing

• New regulatory framework: Owner may reject STS if AIS data missing, vessel details incomplete, or sanctions risks exist.
• Must comply with OCIMF best practices.

Key Impact: Injects compliance and national security protections into operational choices.

Clause 10: Pumping Performance

• Introduces explicit warranty: discharge homogeneous cargo within 24 hours or maintain 100 PSI.
• Time lost from pumping underperformance or IGS failure not counted toward demurrage.
• Terminal-caused failures do not exempt demurrage.

Key Impact: Technically rigorous; enforces vessel accountability while shielding Owner from terminal inefficiencies.

Clause 15: Two or More Ports Counting as One

• Minor updates: time between berths now counts as demurrage if laytime has expired.

Key Impact: Clarifies a previously grey area—important in multi-port loading.

Clause 24: Arbitration

• Adds Singapore and Hong Kong to traditional venues (New York, London).
• Venue-specific arbitration rules (SMA, LMAA, SCMA, HKMAG).
• New subclause: Small Claims (≤$150,000) go to a sole arbitrator under an expedited procedure.

Key Impact: Modern dispute resolution with clear institutional frameworks and quicker paths for minor claims.

Conclusion

ASBATANKVOY 2025 preserves the commercial essence of the 1977 form while providing a modern, granular, and globally relevant framework. It upholds the principle of “once on demurrage, always on demurrage” but tempers its application with reasonable, clearly defined exceptions.

For Owners, this provides improved protections against terminal-caused delays and sanctions risks. For Charterers, it introduces greater operational accountability—especially in the timing of NOR, documentation handling, and STS risk allocation.

In short, ASBATANKVOY 2025 is not a break from tradition, but a refined evolution—better aligned with the needs of today’s tanker trade and the realities of global compliance and performance expectations.