A ship is said to be an arrived ship when the ship has arrived within the fiscal and geographical limits of the port. Captain (master) of the ship is entitled to tender a Notice of Readiness (NOR) before the laytime starts to run against the charterers. Charterer has the option to choose whether to send the ship to a particular berth or to limit his instructions by nomination of a port only. Port or berth 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 (NOR) 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. Under 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). Incorporation of the term WIBO (Whether in Berth or Not) to the charter-party would shift the risk of delay such as congestion to the charterer.
Under the terms of a port charter party, if the charter party indicates a particular port, then the ship becomes an arrived ship once she has reached a position within the legal, administrative and fiscal limits of the port, even if the ship cannot proceed immediately to a berth.
In 1973 Johanna Oldendorff case, Lord Reid described arrived ship:
“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.”
In 1977, in The Maratha Envoy case, arrived ship:
“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.”