When the ship has arrived within the fiscal and geographical limits of the port, then it is said to be an arrived ship, and the master is entitled to tender a notice of readiness (NOR) before the laytime starts to run against the charterers. The charterer has the option to choose whether to send the vessel to a particular berth or to limit his or her instructions by nomination of a port only. This choice is expressed in the voyage charter party in the form of either a port or a berth charter. The time at which the ship arrives will depend on whether the contract is a berth charter party or a port charter party and on the terms of the notice of readiness clause. Under the terms of a berth charter party, the ship will only become an arrived ship once she has reached the particular berth that is expressly named in the charter party. Even in the case of a berth charter party, the risks of delay can be passed to the charterer by allowing earlier commencement of laytime by incorporation of the term WIBO (whether in berth or not). This would shift the risk of delay (e.g., due to congestion) to the charterer. If the charter party indicates a particular port, then the ship be- comes an arrived ship once she has reached a position within the legal, administrative, and fiscal limits of the port, even if she cannot proceed immediately to a berth .
.. .where she is at the immediate and effective disposition of the charterer. If she is at a place where waiting ships usually lie, she will be in such a position unless in some extraordinary circumstances, proof of which would lie in the charterer. If she is at some other place in the port then it will be for the shipowner to prove that she is as fully at the disposition of the charterer as she would have been if in the vicinity of the berth for loading or discharge. (per Lord Reid in the Johanna Oldendorff, 1973)
Where the waiting area of a port is outside its legal, administrative, and fiscal limits, a ship within this area does not become an arrived ship (The Maratha Envoy, 1977).