Cancelling Date

The Cancelling Date is an important clause in a charter party (such as a voyage charter) that specifies the date by which the vessel must arrive at the designated loading port and be ready to load; otherwise, the charterer has the right to cancel the contract. This term is commonly found in the charter transportation of bulk commodities (e.g., coal, grain, ore) and, together with the Layday, forms the Laycan (Layday and Cancelling Date). If the vessel fails to arrive on or before the Cancelling Date, the charterer may exercise the right of cancellation without bearing liability for breach of contract. Note: The Cancelling Date is different from the Latest Shipment Date, which is the shipment deadline in a sales contract, whereas the Cancelling Date applies only to the charter party. In addition, shipowners sometimes request that loading may continue after the Cancelling Date (i.e., an interpellation clause), but this must be explicitly agreed by both parties. Foreign trade practitioners need to accurately define the Cancelling Date in the contract and monitor the vessel's movements to avoid contract cancellation or additional costs due to delay.