Laytime Calculations

Laytime Calculations

Introduction to Laytime

Laytime is the agreed period during which the Voyage Charterer is entitled to load and/or discharge the cargo without paying any amount in addition to the Freight. In a Voyage Charter, the Shipowner undertakes the sea carriage, while the Charterer is allowed a defined amount of time at the loading and discharging stages to complete cargo operations. Because every day, hour, or even part of an hour may affect the commercial result of the voyage, Laytime is one of the most important economic mechanisms in Voyage Chartering. In practical terms, the Charterer’s right to use the ship for cargo operations is limited, and if that agreed period is exceeded, financial consequences normally follow.

Laytime is crucial because it combines commercial negotiation, legal interpretation, port practice, cargo-handling reality, and dispute management. The wording of the Laytime Clause determines when time begins to count, which periods are included or excluded, how interruptions are treated, and whether the final result produces Demurrage or Despatch. Laytime may appear to be a simple time calculation, but in practice it frequently becomes one of the most disputed areas of Voyage Charter Parties. For that reason, clear drafting is essential. Modern chartering practice often relies on the Laytime Definitions endorsed by BIMCO, FONASBA, CMI, and the Baltic Exchange to reduce uncertainty and bring greater consistency to Laytime interpretation.

Disputes over Laytime calculations are common in Voyage Charter Parties. Many disagreements arise because Laytime Clauses in printed Standard Charter Party Forms are not always sufficiently clear for the specific trade, cargo, port, or operational arrangement. Parties frequently amend printed clauses through rider clauses in order to state more precisely how Laytime will be calculated. Without careful amendments, the parties may later disagree over whether a Notice of Readiness (NOR) was valid, whether the ship had become an Arrived Ship, whether weekends and holidays counted, whether weather interruptions stopped time, and whether time continued to run after Demurrage had started.

It is therefore advisable to incorporate recognized interpretation rules into the Charter Party where appropriate. These may include Voyage Charter Party Laytime Interpretation Rules 1993, commonly known as VOYLAYRULES 1993, and the Laytime Definitions for Charter Parties 2013, often referred to as “Laytime Definitions 2013.” These rules do not replace clear contractual drafting, but they provide useful definitions and guidance for interpreting expressions commonly used in Laytime Clauses. If the parties want these rules to apply, the Charter Party should incorporate them expressly and should also state whether any printed or rider clauses override them.

The objectives of Laytime Calculation are:

• To identify the time allowed by the Shipowner to the Voyage Charterer for loading and/or discharging the cargo under the Charter Party.
• To calculate Demurrage or Despatch. Demurrage is the agreed compensation payable to the Shipowner when cargo operations take longer than the allowed Laytime. In other words, Demurrage is paid when actual loading/unloading time exceeds Laytime. Despatch operates in the opposite direction. It is compensation payable to the Voyage Charterer where the cargo operations are completed before the allowed Laytime expires, meaning Despatch Money (DM) is paid when actual loading/unloading time is less than Laytime, provided the Charter Party contains a Despatch provision.
• To create a clear documentary record that can be used as evidence if a dispute is later referred to arbitration, court proceedings, or commercial settlement negotiations.

Time Risk During Sea Voyage

In Voyage Chartering, the risk of delay during the Sea Voyage is generally borne by the Shipowners. The Shipowner is responsible for bringing the ship to the agreed destination and usually bears the consequences of delay at sea, unless the Charter Party contains wording that transfers or modifies that risk. This reflects the basic nature of a Voyage Charter: the Shipowner earns Freight for carrying the cargo and remains responsible for the marine adventure until the ship reaches the agreed loading or discharging destination and the conditions for commencement of Laytime are satisfied.

Specific clauses may alter this general position. For example, ice clauses, war risk clauses, canal clauses, deviation clauses, or special routing provisions may allocate certain sea-voyage risks differently. EXXONMOBILVOY 2012, Part II, Clause 21(a), “ice during voyage,” provides an example of wording under which the Voyage Charterer may be required to reimburse Shipowners for additional steaming time and bunker (fuel) costs caused by ice that prevents or delays the ship from reaching the named Port. Ice Clauses are particularly important in trades involving northern ports, seasonal ice conditions, river systems, and areas where the approach to the loading or discharging port may be obstructed.

Although ice clauses often focus on conditions near loading or discharging ports, their commercial effect may extend into the sea voyage if ice requires the ship to slow down, wait, deviate, use icebreaker assistance, or proceed by a longer route. For this reason, Shipowners and Charterers should review such clauses carefully before fixing. A clause that appears to deal only with navigation may have a direct effect on bunker costs, voyage duration, Laytime commencement, cancellation rights, and liability for delay.

Ships’ ETA (Estimated Time of Arrival) Notices

ETA (Estimated Time of Arrival) Notices are important operational tools in Voyage Chartering. Charterers, Shippers, Receivers, terminals, Port Agents, Stevedores, surveyors, and other parties rely on ETA Notices to arrange cargo readiness, berth planning, labor, documents, inspections, customs procedures, and port services. If the Shipowner or Ship Master fails to provide ETA Notices as required by the Charter Party, or provides them late or inaccurately without justification, the Shipowner may be liable for any economic damages suffered by the Voyage Charterer as a result.

In some Charter Parties, the remedy for defective ETA Notices may be expressed as a financial claim. In others, the Charterer may receive additional time for loading and/or discharging by way of a Laytime adjustment. For example, if a terminal was unable to prepare because the ship failed to send required notices, the Charterer may argue that part of the resulting delay should not count against Laytime. The legal result depends on the wording of the ETA clause, the causation of the delay, the actual loss suffered, and whether the Charterer or terminal could reasonably have acted despite the missing or late notice.

ETA Notices should therefore be treated as more than routine messages. The Ship Master should send them in the form, timing, and frequency required by the Charter Party. Common notice intervals may include 7 days, 5 days, 3 days, 48 hours, 24 hours, and 12 hours before arrival, depending on the trade and Charter Party wording. If the ETA changes materially because of weather, congestion, routing, mechanical issues, canal delay, or other circumstances, revised notices should be sent promptly so that all parties can adjust their arrangements.

Ships’ Arrival at the Agreed Destination

Because Shipowners normally carry the time risk during the sea voyage, while the port-stay risk is shared or allocated through Laytime, Demurrage, and exceptions clauses, it is essential to identify the exact moment when the sea voyage ends and the ship becomes available for cargo operations under the Charter Party. This is the point at which the question of an Arrived Ship becomes central.

A ship must reach the Agreed Destination before it can be treated as an Arrived Ship. The more precisely the destination is described in the Charter Party, the easier it is to determine whether the ship has arrived for Laytime purposes. If the destination is stated as a particular berth, the ship may not be an Arrived Ship until she reaches that berth, unless the Charter Party contains wording that shifts the risk of berth congestion or waiting time. If the destination is a port, the position may be different. The classification of the Charter Party therefore has major consequences for when Laytime begins.

Voyage Charters are commonly classified into three categories according to the destination named for loading or discharging:

1. Berth Charter Party
2. Dock Charter Party
3. Port Charter Party

In a Berth Charter Party, the named destination is the specific berth or cargo-handling place. In a Dock Charter Party, the destination is the dock area. In a Port Charter Party, the destination is the port as a whole. The distinction matters because a ship may be within the port but unable to berth due to congestion, weather, berth occupation, tidal restrictions, or terminal delay. Whether Laytime can begin in those circumstances depends on the type of charter and the precise wording used.

According to Laytime Definitions 2013, Term 1, “Port shall mean any area where ships load or discharge cargo and includes, but is not limited to, Berths, wharves, anchorages, buoys, and offshore facilities as well as places outside the legal, fiscal, or administrative area where ships wait their turn, regardless of the distance from that area.” This definition adopts a broad commercial understanding of a Port and recognizes that ships may wait outside the strict legal or administrative limits of the port while still waiting for that port’s cargo operations.

According to Laytime Definitions 2013, Term 2, “Berth shall mean the specific place where the ship is to load or discharge and includes, but is not limited to, any wharf, anchorage, offshore facility, or other location used for handling cargo.” This definition is also broader than a simple quay or dockside berth. It recognizes that cargo may be loaded or discharged at anchorages, buoys, offshore facilities, terminals, or other cargo-handling locations.

The 2013 official commentary expanded and modernized the approach taken in VOYLAYRULES 1993. The definition of “Port” was updated to reflect the broader commercial concept developed in cases such as The “Johanna Oldendorff” [1971] 2 Lloyd’s Rep. 96; [1972] 2 Lloyd’s Rep. 292; [1973] 2 Lloyd’s Rep. 285. That approach recognizes that the port area may include places outside the legal, fiscal, or administrative boundaries of the port where ships wait their turn. The introduction of “offshore facilities” also reflects modern cargo-handling practice, particularly in tanker, bulk, and offshore loading or discharging operations.

The definition of “Berth” was similarly widened. Under VOYLAYRULES 1993, the concept was more closely tied to a “Place Within a Port”. The 2013 definition recognizes that the cargo-handling place may be more varied and may include offshore or non-traditional locations. This broader wording is commercially useful, but it also makes careful drafting more important. The Charter Party should identify whether the parties intend a berth, dock, or port obligation, and whether waiting at anchorage or outside port limits can trigger Laytime once a valid Notice of Readiness (NOR) is tendered.

Arrival at the Agreed Destination is therefore not only a navigational event. It is a legal and commercial threshold. Once the ship has reached the contractual destination, is ready in the required sense, and has tendered a valid Notice of Readiness where required, Laytime may begin according to the Charter Party. If any of these elements is missing, Laytime may not start, even if the ship is physically close to the loading or discharging place. Clear destination wording is therefore one of the best ways to reduce Laytime disputes.

The Charterer must nominate a Safe Port (SP) in accordance with the Charter Party. A Safe Port is a port that the ship can safely Reach, Enter, Remain at, and Depart from without being exposed to dangers that cannot be avoided by proper navigation and good seamanship. The safety obligation is therefore not limited to the berth itself. It extends to the approach voyage, channels, pilotage areas, anchorages, berthing arrangements, port stay, cargo operations, and departure route.

An extraordinary, abnormal, or unforeseeable event may relieve the Charterer from liability if the ship suffers loss at a port that was otherwise safe when nominated. However, once the danger becomes known, the Charterer must act promptly and give fresh orders to another Safe Port (SP) if the original port can no longer be used safely. The obligation is not merely to nominate a safe place at the beginning; it may also require the Charterer to respond reasonably when circumstances change before or during the ship’s call.

Safe Anchorage (SA) and Safe Berth (SB) follow the same commercial logic. A Safe Anchorage or Safe Berth is a place where the ship can safely approach, remain, carry out the relevant operation, and leave without being exposed to dangers that could not be avoided by competent navigation and seamanship. The concept of safety is therefore similar to the Safe Port obligation, although it is applied to a more specific place within, near, or connected with the port.

For a Berth Charter Party or Dock Charter Party, the position is generally more straightforward. The ship normally becomes an Arrived Ship only when it reaches the named Berth or Dock. Until that point, the sea voyage has not legally ended for Laytime purposes, unless the Charter Party contains special wording to the contrary. As a result, the Shipowner is responsible for any delay in reaching the designated Berth or Dock, including delay caused by congestion, berth occupation, or waiting outside the berth, unless the contract transfers that risk to Charterers. Berth Charter Parties are relatively unusual in tanker trades, where port and berth availability issues are often handled through more specific wording.

In a Port Charter Party, the question of when the ship becomes an Arrived Ship is more difficult. A port may be understood geographically, legally, administratively, commercially, or operationally, and these meanings may not always coincide. Under the common law approach developed in The “Johanna Oldendorff” [1971] 2 Lloyd’s Rep. 96; [1972] 2 Lloyd’s Rep. 292; [1973] 2 Lloyd’s Rep. 285, a ship will generally be treated as an Arrived Ship in a Port Charter Party when certain requirements are satisfied:

• The ship must be within the geographical and legal limits of the port as generally understood by commercial users of that port.
• The ship must be readily and effectively available to the Charterer, meaning that it can proceed to the berth within a reasonable time once a berth becomes available.
• The ship must be waiting at a customary location normally used by ships of similar size and type while awaiting a berth at that port.

For this reason, every Charter Party should define as clearly as possible the point at which the risk and cost of delay pass from Shipowner to Charterer. If the Charter Party does not state this clearly, disputes may arise over whether the ship was an Arrived Ship, whether the Notice of Readiness (NOR) was valid, whether Laytime had started, and whether waiting time should count against Charterers.

Always Accessible (AA) means that the Charterer undertakes to provide an available loading or discharging Berth upon the ship’s arrival at the Port, and that the ship can reach that berth safely and without delay. The obligation is not limited to entry into the berth. It also requires that the ship should be able to leave the berth safely and promptly at any relevant stage before, during, or after loading or discharging. This wording is therefore wider than a simple promise that the berth will eventually become available.

Waiting for Berth Clause

From the Shipowner’s perspective, it is often prudent to include an express Waiting for Berth Clause or to use the phrase Whether In Berth/Port Or Not (WIBPON) in the Laytime Clause. Such wording is intended to allow Laytime to commence when the ship reaches the customary or agreed waiting place, even if the ship has not yet reached the named berth or the precise contractual destination. This is commercially important because berth congestion can otherwise leave the ship waiting for a long period while Laytime has not yet started.

The accessibility of a berth on the ship’s arrival has produced extensive legal debate, particularly in Voyage Tanker Charters. The difficulty arises because different clauses may allocate the waiting risk differently. In some cases, the ship may not yet be an Arrived Ship, but the Charterer may still be in breach of a reachable berth or always accessible obligation. In other cases, the ship may be an Arrived Ship and Laytime may already be running. The wording of the Charter Party therefore determines whether the remedy is Laytime, Demurrage, damages for detention, or another contractual consequence.

Reachable on Arrival or Always Accessible (AA)

“Reachable on arrival shall mean that the Charterer ensures an available loading or discharging Berth is ready for the ship upon its arrival at the Port, which the ship can safely and promptly access.”

The expression Reachable on Arrival has generated substantial litigation because it determines who bears the risk of delay when the berth is not available or cannot be safely reached. The modern understanding reflected in the Laytime Definitions 2013 is that delays caused by bad weather or congestion may amount to a breach of the Charterer’s obligation if the clause requires the berth to be reachable on arrival. This approach places a significant responsibility on Charterers to ensure that the berth is not only physically present but also practically available and accessible when the ship arrives.

The phrase “in the absence of an abnormal occurrence,” which appeared in VOYLAYRULES 1993, was removed from the later formulation. This change is important because it avoids narrowing the Charterer’s obligation by reference to abnormal events in the same way. The result is a clearer and more demanding standard for Charterers where the Charter Party provides for a berth that must be reachable on arrival.

Always Accessible (AA) is generally understood to be similar to Reachable On Arrival (ROA) in relation to entry into the berth. However, the concept of Always Accessible may also extend to departure from the berth, an area that was historically more uncertain. The terms have therefore been separately defined so that the Charterer’s obligation includes not only enabling the ship to reach the berth safely and without delay, but also allowing the ship to depart safely and without obstruction when required.

Many Charter Parties require the Charterer to nominate a Reachable Berth when the ship arrives at the agreed destination. If the Charterer fails to nominate an available berth because of port congestion, the risk of delay may pass to the Charterer. The principle was considered in The “Angelos Lusis” [1964] 2 Lloyd’s Rep. 28. The obligation is not limited to physical obstructions. It may also apply where a berth is technically vacant but cannot be reached safely because of adverse Weather Conditions, fog, tidal conditions, port restrictions, or other circumstances preventing safe and prompt access.

For a Reachable on Arrival obligation to operate, the ship does not necessarily have to be an Arrived Ship for Laytime purposes. It may be sufficient that the ship has reached the point, either within or outside the port, where ships normally wait when no berth has been nominated or made available. From that point, the Charterer assumes the risk of any delay, liable for damages due to failing to appoint a Reachable Berth, provided the Charter Party wording and facts support that conclusion.

However, care must be taken to avoid double recovery for the same period of delay. If the ship is already an Arrived Ship at the waiting place and Laytime has started, the Charterer will not normally be required to compensate the Shipowner twice for the same time lost. Once Laytime is running, time saved during the actual loading or discharging operation may reduce or absorb the earlier waiting time, depending on the Laytime calculation. By contrast, if the ship is not an Arrived Ship at the waiting place, the waiting period and the later cargo-handling period may be treated separately. In that situation, time saved during loading or discharging will not necessarily compensate for the earlier delay caused by the failure to nominate a reachable berth, as illustrated by The “Delian Spirit” [1971] 1 Lloyd’s Rep. 64; [1971] 1 Lloyd’s Rep. 506.

Clauses Tailored for Specific Ports

In ports that are regularly affected by congestion, the usual waiting area may be located outside the formal port limits. In such situations, standard port-specific clauses are often inserted into the Charter Party to protect Shipowners against loss of time before the ship can reach the berth. These clauses commonly provide that Laytime begins when the ship reaches a designated point, provided the ship cannot proceed further because of berth congestion, berth unavailability, port restrictions, or similar operational obstacles. The clause may operate even though the ship has not yet become an Arrived Ship under the ordinary legal test. Its commercial purpose is to shift the waiting risk to Charterers once the ship has reached the agreed waiting point and is effectively prevented from moving forward because the berth or cargo-handling place is not available.

Ships’ Readiness

Principal Rule

The general rule is that a ship must be ready in the required sense before a valid Notice of Readiness (NOR) can be tendered and before Laytime can begin. Readiness is not limited to the physical ability of the ship to load or discharge cargo. It also includes compliance with the necessary customs, quarantine, health, documentary, and port authority requirements imposed by the local authorities (Administrative Readiness). In practical terms, readiness has three connected elements: Physical Readiness, Legal Readiness, and Administrative Readiness.

Physical Readiness means that the ship is in a condition to receive or deliver the cargo. For loading, the cargo spaces must normally be clean, dry, safe, accessible, and suitable for the cargo intended to be loaded. The ship must therefore be a Cargoworthy Ship. For discharging, the ship must be able to make the cargo available for discharge in accordance with the Charter Party and port requirements. Legal Readiness and Administrative Readiness require that the ship has completed, or is able to complete, the formalities necessary for loading or discharging to begin, including customs clearance, health clearance, port documentation, immigration requirements, and other official procedures relevant to the port and cargo.

General Exceptions from the Principal Rule

The principal rule is not applied mechanically in every situation. A ship does not always need to be fully legally, administratively, and physically ready in every respect before a Valid Notice of Readiness (NOR) can be tendered. In some circumstances, Charterers must accept that the ship is sufficiently ready, even though minor onboard preparations remain incomplete or certain formalities cannot yet be finalized. Examples may include uncovering hatches, placing gangways, completing final port health formalities, obtaining Free Pratique, or completing customs clearance where local rules prevent those steps from being taken before the ship reaches the berth.

These exceptions are particularly important in ports where local regulations, terminal procedures, or port routines do not permit physical preparations or formal clearances to be completed until the ship is alongside. If the ship has otherwise reached the contractual destination and is genuinely ready to proceed with cargo operations once the berth becomes available, it may be commercially unreasonable to prevent the tendering of Notice of Readiness (NOR) merely because some formal step must wait until berthing. Whether this approach applies depends on the Charter Party wording, port practice, the nature of the remaining formality, and whether the delay actually prevents cargo operations from starting.

Agreed Exceptions from the Principal Rule

Charter Parties frequently contain express clauses modifying the strict readiness requirements. These agreed exceptions are designed to avoid disputes where the ship is waiting for a berth but cannot complete formalities because the ship is not yet alongside. For example, VOYLAYRULES 1993 modifies the ordinary position by providing that near completion of formalities, including Free Pratique and customs clearance, should not prevent the tendering of a Notice of Readiness (NOR). However, if time is actually lost because those formalities are not completed, that lost time should not count as Laytime or time on Demurrage.

Under Laytime Definitions 2013, Free Pratique is treated more narrowly as a matter concerning compliance with port health requirements. The 2013 definitions avoid detailed treatment of Free Pratique and customs formalities because the applicable rules vary significantly between countries, ports, and authorities. This leaves the parties to deal with readiness and formalities through the Charter Party wording itself. These clauses are most relevant where the ship is waiting for a berth under a Berth Charter or where berth unavailability prevents completion of local procedures. If a berth is available, Notice of Readiness (NOR) is normally tendered after the ship reaches the berth and is ready there.

Where no berth is available, the Charter Party may permit the ship to tender Notice of Readiness (NOR) Whether In Free Pratique Or Not (WIFPON) and/or Whether Customs Cleared Or Not (WCCON). These expressions are intended to prevent the absence of Free Pratique or customs clearance from invalidating the Notice of Readiness (NOR) while the ship is waiting for a berth. In general, where WIFPON or WCCON wording applies, those formalities do not prevent the ship from being treated as ready, and Laytime may begin according to the Charter Party, even though the formalities have not yet been completed, so long as a Berth remains unavailable.

In tanker Voyage Charters, special care is needed where the tanks must be inspected for cleanliness by Charterers, Shippers, Receivers, terminals, or surveyors before loading. If the ship tenders Notice of Readiness (NOR) before tank inspection has been completed, the Charter Party should state clearly what happens if the tanks are rejected, if inspection is delayed, or if cleaning is required. Clauses such as Shellvoy 6, Part II, Clause 2, “cleanliness of tanks,” address the consequences of time lost in connection with tank inspection and cleanliness. This is commercially important because tank rejection may delay loading and create disputes over whether Laytime has started, whether time is excluded, or whether the ship was truly ready.

Notice of Ships’ Arrival and Readiness

When the ship has arrived at the contractual destination and is ready to load or discharge, the Ship Master normally tenders a Notice of Readiness (NOR). The Notice of Readiness (NOR) is the formal declaration that the ship is ready to begin cargo operations. It is one of the most important documents in Laytime calculation because it usually triggers the start of notice time, also known as Notice Time (Free Time, Grace Time), before Laytime itself begins. The length of this notice period depends on the Charter Party wording, port custom, and agreed working-time provisions.

The Notice of Readiness (NOR) should be accurate, timely, and tendered to the correct party in the required manner. It should identify the ship, the port or berth, the time of arrival, the ship’s readiness, and any relevant circumstances affecting the tender. If the Notice of Readiness (NOR) is invalid, Laytime may not begin, even if the ship is physically present and waiting. For this reason, Ship Masters, Ship Agents, Shipowners, and Charterers must treat NOR procedures with great care.

Written Notice of Readiness (NOR)

Unless the Charter Party expressly requires a particular form, a Notice of Readiness (NOR) may, in principle, be given orally or in writing. However, oral notices create obvious evidential difficulties and should be avoided wherever possible. A written notice provides a clear record of the time, date, recipient, content, and method of transmission. This record may become decisive in a Laytime or Demurrage dispute.

VOYLAYRULES 1993, Term 20, provides a widely accepted definition of “in writing,” stating that it includes any visibly expressed form of reproducing words and that the method of transmission may include electronic communications, radio communications, and telecommunications. Although the same wording is not repeated in Laytime Definitions 2013, modern commercial practice strongly favors written or electronically recorded Notices of Readiness (NOR), including notices sent by email, electronic port systems, telex-style communications, or other reliable written channels. The essential point is that the notice should be capable of proof and should comply with the Charter Party requirements.

Time of Notice of Readiness (NOR) Provision

A Notice of Readiness (NOR) should be tendered as soon as the ship is ready to load or discharge and has reached the place at which the Charter Party permits NOR to be given. If the ship is ordered to wait outside the berth under a Berth Charter Party, or outside the port under a Port Charter Party, the Charter Party wording must be examined to determine whether Notice of Readiness (NOR) may be validly tendered at that waiting place. Clauses such as WIBON, WIPON, WIFPON, WCCON, Waiting for Berth, or port-specific waiting clauses may be decisive.

If the Charter Party provides that Notice of Readiness (NOR) must be given only during office hours, a notice tendered outside those hours may not take effect until the next permitted office period begins. Office hours are normally understood as the usual business hours at the relevant port or at the office of the party designated to receive the notice, depending on the wording. Charterers cannot normally avoid the commencement of notice time by closing offices earlier than ordinary business practice or by refusing to receive a valid notice without justification.

Notice of Readiness (NOR) and Statements of Facts (SOF) are essential records in Laytime calculation. The NOR shows when the ship declared readiness, while the Statement of Facts records the sequence of port events, including arrival, anchoring, berthing, NOR tendering, NOR acceptance, commencement of Laytime, start and completion of cargo operations, interruptions, shifting, stoppages, and departure. If the Notice of Readiness (NOR) is valid and accurate, Charterers cannot delay the commencement of Notice Time or Laytime merely by refusing to accept it. The legal effect of the notice depends on the Charter Party and the facts, not simply on whether Charterers choose to acknowledge it.

Sea Notices or Premature Notices

In Voyage Chartering, a Notice of Readiness (NOR) may sometimes be tendered before the ship has actually reached the agreed contractual destination. This can happen, for example, when the ship is still at sea, when the Pilot is on Board, or when the ship is approaching but has not yet reached the place where Notice of Readiness (NOR) may validly be given. Such notices are commonly described as Sea Notices or Premature Notices. As a general rule, they are not effective unless the Charter Party expressly permits them, because Laytime cannot normally begin until the ship is truly Arrived and Ready.

A Sea Notice given too early is usually treated as Invalid. If the ship has not yet become an Arrived Ship, or if the ship is not ready in the sense required by the Charter Party, the Ship Master should tender a Fresh Notice of Readiness (NOR) once the ship has properly arrived and is in fact ready to load or discharge. Where the Ship Master or Shipowner wishes to preserve the argument that the earlier notice was valid, the later notice should be issued with protective wording, such as “Without Prejudice to the Notice of Readiness (NOR) given at (insert earlier time and day of first NOR).” This protects the Shipowner’s position while also reducing the risk that Laytime fails to start because no fresh notice was tendered.

The Validity of a Notice of Readiness (NOR) depends on two central requirements: the ship must have reached the contractual destination, and the ship must be physically, legally, and administratively ready to commence cargo operations. If those requirements are not satisfied, the document may be treated as a Nullity. In that case, the notice has no legal effect for Laytime purposes, even if Charterers, agents, or terminals received it. A document called a Notice of Readiness (NOR) does not become valid merely because it has been sent; it must meet the contractual and legal conditions required for a valid tender.

An Invalid Notice of Readiness (NOR) may prevent Laytime from starting. This can create a serious disadvantage for Shipowners if cargo operations later begin while the earlier notice remains legally ineffective. Charterers may then argue that Laytime did not begin when Shipowners assumed it had begun, potentially reducing or eliminating Demurrage and increasing the time treated as being for Shipowners’ account. The result depends on the wording of the Charter Party, the definition of an Arrived Ship, the place where the notice was tendered, and whether the ship was actually ready at the relevant time.

Readiness is equally important. A ship must generally be Ready In All Respects before a valid Notice of Readiness (NOR) can be tendered. This means that the ship must be Physically Ready to handle the cargo and Legally Permitted to load or discharge. Physical readiness may include clean holds or tanks, accessible cargo spaces, working cargo gear where required, and the absence of defects preventing cargo operations. Legal and administrative readiness may include customs, health, port, immigration, and other formalities, subject to any agreed exceptions such as WIFPON or WCCON. If the ship lacks the necessary readiness, the Notice of Readiness (NOR) may be treated as Premature and may be rejected. Delay caused by the ship not being arrived and ready, or by the tender of an Invalid Notice of Readiness (NOR), falls under the Shipowner’s Risk.

The Correctness of a Notice of Readiness (NOR) is also determined by “how,” “where,” and “when” it is tendered and received. A notice may fail not only because the ship was not arrived or ready, but also because it was given to the wrong party, at the wrong place, by the wrong method, outside permitted hours, or in a form that does not comply with the Charter Party. An Incorrect Notice of Readiness (NOR) may therefore be ineffective even where the ship herself is ready. The procedural requirements should always be checked carefully before tendering Notice of Readiness (NOR).

Notice of Readiness (NOR) should be tendered during the Office Hours specified in the Charter Party. If the original notice is invalid, the Ship Master may need to tender a Fresh Notice of Readiness (NOR), and in some cases it may be prudent to repeat the notice periodically until there is no doubt that a valid notice has been given. Office Hours usually refer to ordinary business office hours, not port operating hours or Stevedore working hours. However, if the Charter Party permits Notice of Readiness (NOR) to be tendered on Saturdays or by electronic means, a Correct Notice of Readiness (NOR) may be sent by email, fax, or another agreed communication method even where the recipient’s office is not physically open, provided the clause permits that result. If the Charter Party requires Notice of Readiness (NOR) to be given during Office Hours and the notice is tendered outside those hours, it will usually take effect only at the beginning of the next permitted business period.

LAYCAN

The “Laydays and Cancelling” LAYCAN Clause defines the contractual window within which the ship is expected to present herself for loading. The first date, commonly called the Layday or opening Layday, indicates the earliest date on which Laytime may begin. The second date, the Cancelling Date, gives Charterers the right to cancel the Charter Party if the ship has not validly tendered Notice of Readiness (NOR) by the agreed deadline, subject to the terms of the contract. A typical formulation may state: “Laydays 1st June/Cancelling Date 15th June.”

The LAYCAN Clause does not necessarily prevent the Ship Master from tendering Notice of Readiness (NOR) before the opening Layday, if the ship has arrived and is ready and the Charter Party permits such notice. In many cases, the Ship Master may tender Notice of Readiness (NOR) and allow the Notice Time to run before the Laydays begin. However, Laytime itself will not start before the earliest time permitted under the LAYCAN Clause. This distinction is important. Notice may be tendered early in some circumstances, but Laytime cannot be forced to commence before the contractual start of the Laydays if the clause prevents it.

The Cancelling Date protects Charterers against excessive delay in the ship’s arrival. If the ship fails to tender a valid Notice of Readiness (NOR) by the cancelling deadline, Charterers may have an option to cancel the Charter Party. Whether Charterers also have a claim for damages depends on the Charter Party wording and the reason for the delay. If Shipowners have exercised due diligence but the ship is late because of circumstances beyond their control, Charterers may have a cancellation right without a damages claim. If Shipowners are in breach of a separate obligation to proceed with due dispatch, damages may also be argued.

Notice of Readiness (NOR) in Each Port?

Charter Parties are sometimes unclear on whether a Notice of Readiness (NOR) must be tendered at every loading and discharging port, or only at the first loading port and/or first discharging port. This can create uncertainty, especially in multi-port voyages where Laytime is calculated separately for each port or where reversible Laytime applies across several operations. Under English Common Law, it’s not required at the Discharging Port unless the Charter Party provides otherwise. However, from a practical and evidential perspective, it is usually safer to tender Notice of Readiness (NOR) at every port where Laytime is intended to count.

Tendering Notice of Readiness (NOR) at each port helps avoid later disputes over whether the ship was ready, when the relevant time began, and whether Charterers had proper notice of the ship’s availability. This does not mean that Charterers automatically receive a fresh Notice Time at every port merely because a Notice of Readiness (NOR) has been tendered. Whether a separate Notice Time applies at each port depends on the Charter Party wording. The parties should therefore state clearly whether Notice Time applies once only, at each loading port, at each discharging port, or at every port where cargo operations are performed.

Length of Notice of Readiness (NOR)

Many Voyage Charterparties give Charterers an additional period after a valid Notice of Readiness (NOR) has been tendered before Laytime begins. This period is commonly called Notice Time, Free Time, or Grace Time. Historically, Notice Time gave Charterers, Shippers, Receivers, terminals, and Stevedores a reasonable opportunity to prepare for cargo operations after being notified of the ship’s Arrival and Readiness. It allowed cargo arrangements, berth planning, labor, documents, and equipment to be organized before time began to count against Charterers.

In modern shipping, where ships are equipped with email, satellite communications, tracking systems, voyage reporting tools, and continuous operational contact between Shipowners, Charterers, Port Agents, terminals, and cargo interests, Notice Time may appear less necessary than it once was. Charterers often know the ship’s expected arrival well in advance through ETA Notices and operational updates. Nevertheless, many Standard Voyage Charterparty Forms continue to provide Notice Time as part of the agreed Laytime mechanism, and unless the clause is amended, the contractual Notice Time must be applied.

For example, GENCON 1994, Part II, Clause 6(c), “Laytime – Commencement of Laytime (loading and discharging),” provides:

“Laytime for loading and discharging shall commence at 13.00 hours if Notice of Readiness is given up to and including 12.00 hours, and at 06.00 hours the next working day if Notice is given during office hours after 12.00 hours. Notice of Readiness at loading Port to be given to the Shippers named in Box 17 or if not named, to the Charterers or their agents named in Box 18. Notice of Readiness at the discharging Port to be given to the Receivers or, if not known, to the Charterers or their agents named in Box 19.”

This wording creates a clear rule for the commencement of Laytime depending on when Notice of Readiness (NOR) is tendered. If the notice is given before or at noon, Laytime starts at 13.00 hours. If notice is given after noon but within office hours, Laytime starts at 06.00 hours on the next working day. Such provisions are designed to remove uncertainty by replacing a general “reasonable time” approach with a fixed contractual timetable.

In tanker Voyage Chartering, Notice Time is often shorter and more standardized. SHELLVOY 6, Part II, Clause 13, “Notice of Readiness (NOR) / Running Time,” provides:

“Time at each loading or discharging Port shall commence to run 6 hours after the ship is in all respects ready to load or discharge and written notice thereof has been tendered.”

This six-hour Notice Time reflects common tanker practice and the need for predictable cargo-programming. In tanker trades, terminal scheduling, cargo availability, pumping arrangements, tank inspections, shore tanks, pipelines, and documentary procedures are closely coordinated. A fixed six-hour period gives Charterers and terminals a short but defined preparation period after the ship has tendered a valid written Notice of Readiness (NOR).

Although Notice Time may be less commercially necessary today than in earlier periods, it can still be justified in certain situations. If a ship arrives during the night, on a Sunday, during a public holiday, or outside ordinary working hours, immediate cargo operations may not be possible. In such circumstances, Notice Time allocates the risk of initial waiting between Shipowners and Charterers. If the parties agree that the ship should wait until the next ordinary working period before Laytime begins, they may use wording such as:

“Laytime to commence at the beginning of the next ordinary working shift after the ship’s arrival.”

Once Notice Time has begun, it generally continues to run unless the Charter Party Expressly Agreed otherwise. This means that Notice Time may continue during Sundays, holidays, or other periods that would not count as Laytime under the Laytime Clause. For example, if Notice Time begins on a Saturday afternoon and the Laytime Clause excludes Sundays and holidays, the Notice Time may still expire during the excluded period unless the Charter Party states that the same exceptions apply to Notice Time. The relevant clause should therefore be drafted carefully to avoid disputes over whether weekends, holidays, weather delays, strikes, or other exceptions interrupt Notice Time.

The length and effect of Notice Time should always be considered together with the rules on Notice of Readiness (NOR), Office Hours, Laydays, SHEX or SHINC wording, port working practices, and cargo-readiness obligations. A small difference in Notice Time wording can change the Laytime calculation substantially and may determine whether the final account results in Demurrage, Despatch, or no balance payable by either party.

Notice Time Before the First LAYDAY

Unless the Charter Party provides otherwise, a Notice of Readiness (NOR) may be tendered before the first agreed LAYDAY, provided the ship has reached the place where notice can validly be given and is ready in accordance with the Charter Party. In such a case, the Notice Time may begin and even expire before the opening Layday. However, Laytime itself will not normally start before the earliest date permitted by the Laydays provision. This distinction is important because an early valid Notice of Readiness (NOR) may complete the notice procedure, while the actual counting of Laytime remains postponed until the contractual Layday begins.

Laytime Counting During Notice Time

Under English law, if loading or discharging starts before the agreed Notice Time has expired, Shipowners are not automatically entitled to count that period as Laytime. The general rule is that Laytime begins only when the Notice Time has run its course, unless the Charter Party expressly provides that earlier working time will count. To avoid uncertainty, parties often insert wording such as:

“Time actually used before commencement of Laytime shall count.”

This wording is directed at time actually spent on cargo operations before the formal start of Laytime. It does not normally mean that every minute during the Notice Time becomes countable. Interruptions such as meal breaks, stoppages, or periods when no cargo work is taking place should not count merely because the ship is within the Notice Time period, unless the Charter Party clearly provides otherwise. The expression is therefore useful, but it should be drafted carefully if the parties intend all time, rather than only cargo-working time, to count before Laytime formally begins.

Commencement of Time Counting

Laytime will generally commence only after the essential conditions have been satisfied. These conditions are:

• The ship has arrived at the agreed destination (Port, Berth, Dock, etc.) in accordance with the Charter Party;
• The ship is Physically Ready and Legally Ready to load or discharge the cargo;
• A Notice of Readiness (NOR) is correctly tendered by the Ship Master, Ship Agent, or another party authorized to act on behalf of the Shipowner.

If the Charter Party grants a Notice Time, the ordinary rule is that Laytime starts only after that Notice Time has expired. However, many Charter Parties contain special clauses designed to deal with practical situations where the ship cannot immediately proceed to the berth or cargo-handling place. Such clauses have developed through commercial practice, arbitration, and court decisions because congestion, berth unavailability, and waiting outside port limits can otherwise leave Shipowners exposed to substantial waiting time before Laytime begins.

Laytime Definitions 2013, Term 26, explains the effect of expressions such as “time lost waiting for Berth to count as loading or discharging time” or “as Laytime.” In substance, where no loading or discharging berth is available and the ship is unable to tender Notice of Readiness (NOR) at the waiting place, the time lost to the ship counts as if Laytime were running, or as time on Demurrage if Laytime has already expired.

The time counted under this type of clause stops once the berth becomes available. When the ship reaches a place where she is able to Tender Notice of Readiness (NOR), the Laytime or Demurrage position resumes according to the Charter Party. If Laytime is still running, it resumes after the fresh tender of NOR and the expiry of any applicable Notice Time. If the ship is already on Demurrage, time resumes on the basis applicable to Demurrage, usually without the benefit of a further Notice Time unless the contract clearly provides otherwise.

Common Clauses Shifting Risk of Delay

One of the most common clauses transferring the risk of waiting time is found in GENCON 1994, Part II, Clause 6(c), “Laytime – commencement of Laytime (loading and discharging).” This provision states that time lost waiting for a berth is to count as loading or discharging time. The commercial purpose of the clause is to protect Shipowners where the ship could have proceeded to the berth if a berth had been available, but is delayed because the berth is occupied, congested, or otherwise unavailable.

In a Berth Charter, this type of clause covers the period during which the ship waits in or near the port before the berth becomes available. Without such wording, the ship might not become an Arrived Ship until she reaches the named berth, leaving Shipowners to bear the waiting time. In a Port Charter, the clause may apply where the ship is waiting outside port limits, or even inside the port, but is not Immediately and Effectively at the disposal of Charterers. The central question is whether berth unavailability is the real and effective cause of the delay.

The clause was originally developed as a Berth Charter Clause, but its use in Port Charters has sometimes caused uncertainty because of possible overlap with ordinary Laytime provisions. The modern understanding is that, where the clause states that “all time lost waiting for a berth shall count as Laytime,” the waiting period is treated as Laytime as if the ship were already an Arrived Ship. This approach was considered in The “Darrah” [1967] 1 Lloyd’s Rep. 285; [1976] 2 Lloyd’s Rep. 359.

Regarding Laytime Calculation when such a term is agreed in the Charter Party, it should be noted:

• Laytime may begin when the Notice of Readiness (NOR) is tendered by the Ship Master to Charterers’ Agent, even though the ship is delayed because no berth is available, provided the clause and facts support that result.
• Time lost waiting for an available Berth counts as Laytime until either Laytime expires or a berth becomes available, whichever occurs first. If Laytime expires while the ship is still waiting, the ship goes on Demurrage.
• If the ship is waiting for a berth and Laytime has not yet expired, the usual Laytime Exceptions apply as though the ship were actually loading or discharging.
• If the ship remains waiting and Laytime expires, so that the ship is on Demurrage, Laytime exceptions normally cease to apply under the principle (Once On Demurrage Always On Demurrage), unless the Charter Party expressly provides otherwise.
• Waiting time, whether counted as Laytime or as Demurrage, stops counting once a Berth is available, if the clause is drafted in that form.
• When a berth becomes available and the ship reaches a place where a Fresh Notice of Readiness (NOR) can be tendered in accordance with the Charter Party, Laytime or Demurrage resumes after that tender. If the ship is still on Laytime, any contractual Notice Time must normally expire before Laytime resumes. If the ship is already on Demurrage, time usually resumes immediately after the Tender of Notice of Readiness (NOR), without a new Notice Time, unless the Charter Party states otherwise.
• The main commercial purpose of the clause is to transfer the burden and risk of time lost because of berth unavailability from the Shipowner to the Charterer.
• The provision may operate in both Berth Charter and Port Charter contexts. In a Berth Charter, the ship does not normally become an Arrived Ship until she reaches the contractual berth, and Notice of Readiness (NOR) isn’t valid until then, unless special wording allows earlier tender. The time-lost clause protects the Shipowner during the waiting period before the berth becomes available.
• In a Port Charter, the same wording may protect the Shipowner where the ship is required to wait outside port limits, or where the ordinary waiting place does not satisfy the usual test for an Arrived Ship.

Furthermore, Laytime Definitions 2013, Term 27, introduces similar wording:

Whether in Berth or Not (WIBON), also expressed as “Berth or no Berth,” means that if the designated loading or discharging berth is not available when the ship arrives, the ship may tender Notice of Readiness (NOR) from any usual waiting place at the port, and Laytime will commence in accordance with the Charter Party.

The official commentary explains that this term is intended to address delays caused by congestion and berth unavailability, rather than weather-related delays. One important change from VOYLAYRULES 1993 is that, once a berth becomes available, Laytime or Demurrage does not necessarily stop while the ship proceeds to the berth. This shifts the risk back in accordance with the Charter Party wording and avoids unnecessary interruption in time counting. The WIBON Clause is similar in commercial function to a Time Lost Clause, but it is particularly important in Berth Charter Parties. Where the ship arrives and no berth is available, WIBON can effectively allow the ship to be treated in a similar way to a Port Charter Party for Notice of Readiness (NOR) and Laytime purposes, enabling the ship to become an Arrived Ship earlier and allowing the Laytime clock to start before the ship is physically alongside.

Clause Enabling Early Notice of Readiness (NOR)

This type of clause allows the Shipowner to tender a Valid Notice of Readiness (NOR) once the ship has arrived at the port or at an agreed waiting place, provided that the other requirements for a valid Notice of Readiness (NOR) are satisfied. Its main purpose is to protect Shipowners where the ship cannot proceed directly to the berth because of port congestion or berth unavailability. It is not normally intended to apply where a berth is open but the ship cannot safely reach it because of bad weather, tides, fog, navigational restrictions, or other physical obstacles. For Laytime Calculation, the clause operates in much the same commercial manner as a Time Lost Clause, because it transfers the risk of waiting time from Shipowners to Charterers once the agreed conditions are met.

Laytime Definitions 2013, Term 28, also introduced the expression:

Whether in Port or Not (WIPON) means that if the nominated loading or discharging berth and the usual waiting place at the port are not available when the ship arrives, the ship is entitled to tender Notice of Readiness (NOR) from any recognized waiting place outside the port, and Laytime will commence in accordance with the Charter Party.

This wording gives Shipowners a practical remedy where the ordinary waiting place cannot be reached or used. Under WIPON, the ship does not necessarily need to be within the formal port limits before Laytime can begin. If the ship has arrived at a recognized waiting area outside the port, where similar ships commonly wait for berth availability, and the ship is otherwise ready, the Shipowner may be able to tender a valid Notice of Readiness (NOR). The clause therefore extends protection beyond the ordinary port boundary where congestion prevents the ship from entering the port or reaching the usual waiting place.

WIPON has a similar commercial effect to the WIBON Clause. Both expressions are designed to prevent Charterers from arguing that Laytime cannot start merely because the ship has not yet reached the berth. However, WIPON goes further by addressing situations where the ship is not even within the port or cannot reach the usual waiting place. Like WIBON, it is primarily concerned with delay caused by Berth unavailability due to Port Congestion, rather than delay caused by weather, tides, navigational danger, or other causes unrelated to berth availability.

Laytime Allowance

Laytime is normally stated in the Charter Party either as a fixed number of days or hours, or as a cargo-handling rate per day. Examples include “9 days,” “96 hours,” “loading 15,000 mt per day,” or similar wording. The allowance may apply separately to loading and discharging, or it may apply to both operations together. Where the allowance covers both loading and discharging, the expression For All Purposes is often used. Clear wording is essential because the method chosen directly affects whether the final calculation produces Demurrage, Despatch, or no balance payable by either party.

Laytime may also be structured in different ways. Calculable Laytime requires the parties to calculate the allowed time by applying the Charter Party terms to the cargo quantity and the events recorded in the Statement of Facts. For example, where the Charter Party provides for loading at 10,000 metric tons per day, the allowed loading time depends on the actual cargo quantity. Indefinite Laytime is more uncertain and arises where the Shipowner agrees to load or discharge according to expressions such as Custom of Port (COP), Customary Quick Despatch (CQD), or As Fast As Can (FAC). These terms often make Laytime calculations more difficult because they depend heavily on local practice, ship capability, evidence, and factual circumstances.

Common methods to determine Laytime include:

• A fixed number of days, such as “Ten running days allowed for loading.”
• A daily cargo-handling rate, such as “Loading at a rate of 10,000 mt per day.”
• A rate per hatch per day, such as “Loading at a rate of 300 mt per hatch per day.”
• A calculation based on the ship’s loading capacity, such as “Six running days allowed for loading based on the ship’s cubic capacity of 600,000 cubic feet. Time to be adjusted pro rata for larger or smaller ships.”

Where cargo-handling rates are expressed per hatch, particular attention must be paid to the wording used. Expressions such as Workable Hatch and Available Hatch usually mean that only the hatches actually available or used for the cargo operation are counted. In that case, the total time allowed is often calculated by dividing the quantity in the largest hatch by the agreed daily rate per workable or available hatch. This method is generally less favorable to Shipowners because a heavy concentration of cargo in one hatch may extend the allowed time even if other hatches are lightly used.

By contrast, where the Charter Party simply refers to “hatch” without the words “available” or “workable,” the calculation may be more favorable to Shipowners. In that case, the Total Time Allowed may be calculated by dividing the total cargo quantity by the result obtained by multiplying the number of hatches by the daily cargo-handling rate. Because the difference can be substantial, the Charter Party should define the hatch basis clearly and should avoid vague cargo-rate wording where cargo is unevenly distributed between holds.

In tanker trades, Laytime often continues until cargo hoses are disconnected, or until the necessary cargo documents and transport documents have been delivered, depending on the wording of the Charter Party. Tanker Laytime therefore requires attention not only to pumping time but also to tank inspection, sampling, documentation, disconnection of hoses, cargo measurement, and terminal procedures. These events can affect the exact point at which loading or discharging is considered completed for Laytime purposes.

Challenges for Shipowners with As Fast As Can (FAC) Clauses

In Contracts of Affreightment (COA) and similar long-term arrangements, the time allowed for cargo operations may be connected with a fixed cargo-handling capacity for particular ship sizes, with adjustments for larger or smaller ships. Clauses such as Liner Terms with Customary Quick Despatch (CQD) or As Fast As The Ship Can Receive/Deliver (FAC) are often used, but they can create serious difficulties for Shipowners. The main problem is evidential: if no fixed loading or discharging rate is stated, Shipowners may find it difficult to prove that Charterers or cargo interests handled the cargo too slowly and that Demurrage is payable.

For Shipowners, it is important to link any As Fast As Can (FAC) wording to the ship’s actual cargo-handling capacity. If the clause is not connected to the ship’s gear, pumping ability, hatch arrangement, tank capacity, or technical capability, Shipowners may struggle to recover compensation for delays caused by circumstances outside Charterers’ control, such as shore congestion, shortage of trucks, slow terminal operations, lack of storage, customs delay, or labor restrictions. Without a clear benchmark, the phrase “as fast as can” may become too uncertain to give Shipowners reliable protection.

Some Charter Parties also contain Force Majeure Clauses, which may protect one or both parties where extraordinary events beyond their control prevent or delay performance. Natural disasters, strikes, political events, port closures, war risks, epidemics, government restrictions, or extreme weather may fall within such clauses, depending on the wording. Where FAC, CQD, or similar clauses are combined with force majeure wording, the parties must examine carefully whether delay remains for Charterers’ account, Shipowners’ account, or is excused altogether.

A further practical difficulty is that Charterers operating under an As Fast As Can (FAC) Clause often do not expect Demurrage claims. This can create commercial resistance when Shipowners later assert that cargo operations were not conducted as quickly as the ship could receive or deliver. The challenge is both evidential and psychological. Shipowners must prove the ship’s cargo-handling capability, the actual performance achieved, the cause of delay, and the extent to which Charterers failed to use the ship efficiently. Detailed records from the Ship Master, Port Agents, terminals, Stevedores, surveyors, and Statements of Facts are therefore essential.

Unless otherwise agreed, Demurrage (D) and Despatch Money (DM) are calculated separately for loading and discharging. If there are several loading ports, one calculation is normally made for all loading ports together. If there are several discharging ports, one calculation is normally made for all discharging ports together. This approach keeps the loading and discharging accounts distinct unless the Charter Party expressly combines them.

The default position may be changed by clear Charter Party wording. For example, phrases such as “time allowed for loading and discharging, ten days altogether” or “time allowed, ten days all purposes” indicate that the parties intend one combined Laytime allowance for both loading and discharging. Such wording can materially affect the final result because time saved at one stage may be used at another, depending on whether the clause creates total, average, or reversible Laytime.

Voyage Charter Parties may also use expressions such as Reversible or Average. For example, the Charter Party may provide: “four days for loading and six days for discharging, loading and discharging times to be reversible,” or “four days for loading, six days for discharging, Charterers having the right to average loading and discharging times.” These expressions are similar in commercial purpose but different in calculation method.

With Reversible Laytime, loading time and discharging time are combined into one Total Time allowance. Any time saved during loading becomes available for discharging. If the total allowance is exhausted during loading, the ship may go on Demurrage immediately upon arrival at the discharging port, provided the other requirements for counting time are satisfied. Because the calculation treats the loading and discharging operations as one combined account, the point at which Demurrage begins may differ from a separate calculation.

It remains advisable for the Ship Master to tender a Notice of Readiness (NOR) at the discharging port to avoid disputes, even where such notice may not be strictly required under the applicable law or Charter Party. For Average Laytime, loading and discharging are first calculated separately. The time saved in one operation is then set against the excess time used in the other operation to determine the final balance of Demurrage or Despatch Money (DM).

Laytime Definitions 2013 defines Average Laytime, or To Average Laytime, as a method under which separate calculations are made for loading and discharging, and time saved in one operation is offset against excess time used in the other. The practical effect is that Despatch at one port may reduce Demurrage at another, or excess time at one stage may be balanced against time saved at another stage.

Reversible Laytime, as defined by Laytime Definitions 2013, gives Charterers the option to combine the time allowed for loading and discharging. Once that option is exercised, the combined allowance is treated as though one total Laytime period had been agreed for both operations. This turns the calculation into a single account rather than two separate calculations.

Unlike Average Laytime, where loading and discharging remain separate before being offset, Reversible Laytime involves a single calculation for both stages. The total time used for loading and discharging is deducted from the total Laytime allowance, and the balance then determines whether Demurrage or Despatch is payable. If there are multiple loading ports, the parties may also agree that a Reversible Laytime Calculation applies only to the loading ports, while discharging remains separately calculated.

In many cases, Average Laytime and Reversible Laytime may produce similar financial results. However, the principle “Once On Demurrage, Always On Demurrage” can create major differences. If the ship has already gone on Demurrage during loading, the treatment of exceptions, interruptions, and subsequent time may differ from a calculation where the total allowance remains available across both loading and discharging. This is why the exact choice of wording matters.

These clauses are often drafted to give Charterers the Option, for example: “Laytime for loading and discharging to be reversible at Charterers’ option.” Such wording usually benefits Charterers because Charterers can choose the method that produces the more favorable final account. Shipowners should therefore consider carefully whether the option should be mutual, whether it must be declared by a particular time, and whether the Charter Party should specify the calculation method in advance.

Definite Laytime

Definite Laytime refers to a clearly stated amount of time allowed to Charterers for loading, discharging, or both. It may be expressed in days, hours, or another precise time unit. Where one allowance is stated for both loading and discharging, it is often described as All Purposes Laytime. Definite Laytime is generally preferable where the parties want certainty, because the calculation begins with an agreed time allowance rather than a vague standard such as Custom of Port (COP) or As Fast As Can (FAC).

Various expressions are used to define Definite Laytime, and the meaning of each expression can affect the calculation. Key definitions and abbreviations connected with LAYDAYS include the following:

• Day: A period of twenty-four (24) Consecutive Hours. Any part of a day is counted pro rata. Under Laytime Definitions 2013, Term 8, a Day is understood as 24 Consecutive Hours, which is different from a Calendar Day and a Conventional Day. This definition may be favorable to Shipowners because it can include Sundays and holidays where the Charter Party does not exclude them.
• Calendar Day: A period of twenty-four (24) Consecutive Hours running from 0000 hours to 2400 hours, with any part counted pro rata. Laytime Definitions 2013, Term 9, treats this as a full day measured by the calendar clock.
• Conventional Day: A period of twenty-four (24) Consecutive Hours beginning at any agreed or specified time, with any part counted pro rata. Laytime Definitions 2013, Term 10, allows the 24-hour period to begin at a time other than midnight.
• Working Day (WD): A day on which work is normally performed according to local law or local practice. Laytime Definitions 2013, Term 11, uses the local working pattern as the basis. The Charter Party should define carefully which days are Working Days and which days are holidays at the loading and discharging ports. Days intended to be excluded from Laytime should be expressly stated to avoid disputes.
• Running Days (RD) or Consecutive Days (CD): Days that follow one after another without interruption. Laytime Definitions 2013, Term 12, emphasizes the continuous nature of this type of Laytime. Unless the Charter Party provides otherwise, weekends, holidays, and non-working periods may count.
• Running Hours or Consecutive Hours: Hours that follow continuously without interruption. This expression is frequently used in Tanker Charter Parties, where Laytime may be expressed in a fixed number of running hours, such as 72 hours. Laytime Definitions 2013, Term 13, reflects this continuous-time approach.
• Holiday: A day other than an ordinary weekly rest day when work is not normally performed during Ordinary Working Hours because of local law or local practice. Laytime Definitions 2013, Term 14, makes the local character of holidays important. Parties should therefore check the holiday calendar and local port practice before fixing.
• Weather Working Day (WWD): A Working Day, or part of a Working Day, during which cargo operations can be performed without interruption by weather. If cargo work is stopped by weather, the relevant stopped period is excluded or added to the end of Laytime according to the specific wording used. Laytime Definitions 2013, Terms 15 and 16, distinguish between different forms of weather working day wording.
• Weather Working Day of 24 hours: A 24-hour period made up of one or more Working Days during which cargo operations can proceed without weather interruption. Weather-related stoppage time is excluded from Laytime. Laytime Definitions 2013, Term 17, gives this phrase a more precise meaning than a general reference to weather working days.
• (Working Day) Weather Permitting: This expression is treated as equivalent to a Weather Working Day of 24 Consecutive Hours under Laytime Definitions 2013, Term 18. Its purpose is to give a consistent interpretation where the parties intend weather interruptions to affect the counting of Laytime.

Laytime Definitions 2013 provide several distinct definitions of Weather Working Days (WWD), reflecting the development of English law and commercial practice. This was an important update from the simpler approach in VOYLAYRULES 1993, which dealt with weather working expressions in a more limited way. The modern distinctions are important because different weather wording may produce different results in Laytime calculations, particularly where weather interrupts only part of a working day, where work would not have been possible in any event, or where the port operates outside ordinary working hours.

For clarity, and to understand why these distinctions matter, the wording of the weather working expressions in VOYLAYRULES 1993 should be compared carefully with the later Laytime Definitions 2013. The choice of expression can affect whether weather stops the clock entirely, merely extends the allowance, or excludes only the time during which cargo operations were actually prevented. In practice, even small differences in weather wording can have significant financial consequences where a ship is loading or discharging during periods of rain, snow, high wind, swell, lightning, extreme temperature, or other adverse weather conditions.

• Weather Working Day (WWD) or Weather Working Day of 24 hours or weather working day of 24 consecutive hours: Under VOYLAYRULES 1993, Term 12, this expression means a working day of 24 consecutive hours, excluding any period during which weather prevents loading or discharging, or would have prevented loading or discharging if work had actually been taking place. In practical terms, this is a day on which cargo work is normally performed at the port, but time affected by Bad Weather does not count as Laytime. For example, if the ship is waiting for a berth and Bad Weather would have prevented loading or discharging had the ship been alongside, the weather-affected period is excluded from Laytime. This wording is generally less favorable from the Shipowner’s perspective than Weather Permitting (WP), because it may protect Charterers even before cargo operations physically begin.
• Weather Permitting (WP): Under VOYLAYRULES 1993, Term 13, this expression means that any time during which weather interrupts loading or discharging does not count as Laytime. The important distinction is that Weather Permitting (WP) is usually linked to actual interruption of cargo operations. Therefore, if the ship is waiting for an available berth and Bad Weather would have prevented loading or discharging had the ship been alongside, that period may still count as Laytime. For that reason, this wording is usually more favorable to Shipowners than a Weather Working Day (WWD) formulation.

Several additional expressions are not included in Laytime Definitions 2013 but remain important for understanding older Charter Party wording and commercial practice:

• Clear Days: Under VOYLAYRULES 1993, Term 9, Clear Days are Consecutive Days beginning at 0000 hours on the day after Notice of Readiness (NOR) is given and ending at 2400 hours on the final stipulated day. This expression is often used to define Notice Time, with the day of the notice and the final working commencement day excluded. For example, if Notice of Readiness (NOR) is tendered on June 15 for “7 Clear Days,” the count begins at 0000 hours on June 16 and ends at 2400 hours on June 22. Cargo readiness would then be expected on June 23.
• Days All Purposes (DAP): This expression is often used in the same commercial sense as Reversible Laytime, or in wording such as “time allowed for loading and discharging X days altogether.” It indicates that the agreed time is to be used for both loading and discharging, rather than being divided into separate allowances unless the Charter Party states otherwise.

The expressions Weather Working (WW), Weather Working Day (WWD), and Weather Permitting (WP) have historically caused substantial uncertainty in Voyage Chartering. Even though attempts have been made to standardize their meaning, no single universally accepted interpretation has completely eliminated disputes. Much depends on the governing law, the exact Charter Party wording, local port practice, whether the ship is already at berth, and whether cargo operations were actually underway or merely would have been prevented by the weather.

Expressions such as “Time allowed for loading 5 days Weather Permitting (WP)” or “Time allowed for loading 5 days Weather Working (WW)” are common in Voyage Charter Parties, but they should not be used casually. Shipowners and Charterers should discuss these expressions carefully during negotiations and, where possible, draft wording that clearly states how weather interruptions will affect Laytime. If the parties prefer a standardized approach, they should expressly incorporate Laytime Definitions for Charter Parties 2013 and consider the official commentary, which largely reflects the approach developed under English law.

Even with modern definitions, weather exceptions continue to generate practical and legal debate. When drafting or reviewing a Laytime Clause, Shipowners and Charterers should consider three main questions:

1. Should weather stoppages in the port suspend time counting for ships that are waiting their turn to load or discharge?
2. Should weather stoppages outside the port’s normal working hours affect Laytime, even where cargo operations would not have taken place during that period in any event?
3. How should weather interruptions be calculated mathematically in the final Laytime statement?

Under Laytime Definitions 2013, the official commentary to Definition No. 18 explains that (Working Day) Weather Permitting has the same meaning and interpretation as Definition No. 16, Weather Working Day (WWD) of 24 Consecutive Hours. For practical purposes, the key provisions are therefore Definitions No. 15 and No. 16. Both definitions make clear that they apply where an interruption occurs, or where an interruption would have occurred if cargo work had been in progress.

Definition 15, dealing with Weather Working Day (WWD), provides that any interruption to time counting should be calculated “by reference to the ratio which the duration of the interruption bears to the time which would have or could have been worked but for the interruption.”

In practical terms, this means that Bad Weather deductions are calculated proportionally. The interruption is compared with the number of hours that would normally have been worked during the relevant working period, and the result is then converted against a 24-hour Laytime day. For example, if a two-hour weather stoppage occurs during an eight-hour working day, the deduction is calculated as two divided by eight, multiplied by 24 hours. The result is a six-hour deduction. In that situation, six hours are excluded from Laytime, while the remaining eighteen hours continue to count. Weather interruptions outside ordinary working hours are not excluded under this method, because those hours would not have been worked in any event.

Definition 16, dealing with Weather Working Day of 24 Consecutive Hours, takes a different approach. It provides that the actual duration of any Bad Weather interruption occurring at any time during a working day, whether during or outside ordinary working hours and including periods while the ship is waiting on turn, is added to the end of Laytime.

This means that Weather Stoppages are fully deducted from Laytime whenever they occur within the relevant 24-hour period. Unlike Definition 15, this approach is not limited to weather interruptions during ordinary working hours. It includes stoppages outside normal working hours and may also apply while the ship is waiting for its turn, provided the wording and facts satisfy the definition.

Regarding the first question, namely whether weather stoppages in port should suspend time for ships waiting their turn to load or discharge, both Definitions 15 and 16 confirm that Weather Stoppages in port may suspend Laytime counting where cargo operations would have been prevented by the weather.

Regarding the second question, namely whether stoppages outside ordinary working hours should affect the calculation when the ship would not have been working anyway, the answer depends on the exact definition used. Under Definition 15, the calculation is linked to the working time that would have or could have been used, so weather outside ordinary working hours will not normally reduce Laytime. Under Definition 16, the full duration of the weather interruption is added to the end of Laytime, even if it occurs outside ordinary working hours, because the definition treats the working day as a 24-hour period for this purpose.

Regarding the third question, the mathematical treatment differs significantly between the two approaches. Definition 15 uses a proportional calculation based on the relationship between the weather stoppage and the time that would have been worked. Definition 16 uses a direct deduction of the actual time lost because of weather. This difference can produce materially different results in a Laytime statement, especially where weather interruptions occur at night, during weekends, outside normal shifts, or while the ship is waiting for berth availability.

The practical lesson is that weather wording should be drafted with precision. A phrase that appears familiar may change the financial result substantially. Shipowners will generally prefer wording that minimizes weather deductions during waiting periods or outside working hours, while Charterers will usually prefer wording that stops Laytime whenever weather would have prevented cargo operations. Because the value of Demurrage or Despatch can be significant, the chosen weather expression should be understood before the Charter Party is fixed, not argued after the Statement of Facts has been issued.

• Definition 15 does not exclude weather interruption time outside the relevant working period from Laytime.
• Definition 16 does exclude the full actual duration of the weather interruption, regardless of whether the interruption occurs during or outside ordinary working hours.

For the third question, namely how Weather Stoppages should be calculated, the two definitions adopt different methods:

• Under Definition 16, the actual duration of the weather interruption during the 24-hour period is deducted directly from Laytime.
• Under Definition 15, the deduction is calculated proportionally by comparing the length of the weather interruption with the normal or available working period, and then applying that ratio to a 24-hour Laytime day.

These distinctions show why weather wording must be selected carefully. A short weather stoppage may produce different Laytime results depending on whether the Charter Party refers to Weather Working Day, Weather Working Day of 24 Consecutive Hours, Weather Permitting, or another expression. Ultimately, the exact Charter Party wording governs the Laytime Counting process, and the parties should avoid relying on familiar expressions unless their intended legal and commercial effect is clearly understood.

Calculable Laytime

Calculable Laytime is used where the precise Laytime allowance is not stated as a simple fixed number of days or hours, but must be calculated from the Charter Party wording and the facts recorded in the Statement of Facts (SOF). In these cases, the allowed Laytime is determined after the cargo quantity, loading or discharging rate, hatch arrangement, and cargo distribution are known. The calculation may be based on Tonnage Calculations or Hatch Calculations, depending on the method chosen in the Charter Party.

• Tonnage Calculations: This method applies where the Charter Party states that the ship is to load or discharge at a fixed tonnage rate per day. For example, if the ship is to load 100,000 metric tons at a rate of 20,000 metric tons per day, the allowed Laytime is five (5) days. This is one of the clearest calculable methods because the formula is directly linked to cargo quantity and the agreed daily cargo-handling rate.
• Hatch Calculations: This method applies where Laytime is calculated by reference to a cargo-handling rate per hatch and/or per day. For example, wording such as “300 tons per hatch daily” requires the calculation to take account of the number of hatches, the cargo distribution, and whether the clause refers simply to hatches or to working, workable, available, or serving hatches. These distinctions can materially change the Laytime allowance.

Common definitions and abbreviations used in Calculable Laytime include the following:

• Per Hatch Per Day under Laytime Definitions 2013, Term 6, refers to a calculation based on the total cargo quantity, the daily rate per hatch, and the number of hatches available under the formula.

Laytime = Quantity of Cargo ÷ (Daily Rate per Hatch × Number of Hatches) = Days

Under this method, the cargo quantity is divided by the total daily loading or discharging capacity derived from the number of hatches multiplied by the agreed rate per hatch. Twin parallel hatches are normally counted as one hatch, unless the hatch arrangement permits two gangs to work simultaneously, in which case the arrangement may be treated as two hatches for calculation purposes. Because hatch counting can significantly affect the time allowed, the Charter Party should identify clearly how hatch capacity is to be assessed.

• Per Working Hatch Per Day (WHD) or Per Workable Hatch Per Day under Laytime Definitions 2013, Term 7, uses a different approach. Instead of dividing the total cargo by all hatches, the calculation focuses on the largest quantity of cargo loaded in or discharged from one hold and the number of hatches serving that hold.

Laytime = Largest Quantity in One Hold ÷ (Daily Rate of Loading or Discharging per Working or Workable Hatch × Number of Hatches Serving that Hold) = Days

This method is particularly important where cargo is not evenly distributed between holds. If one hold contains a much larger quantity than the others, the ship may still be delayed by the time needed to complete that hold, even though other holds finish earlier. For that reason, Working Hatch or Workable Hatch calculations may allow more time to Charterers than a simple total-hatch calculation. The same hatch-counting principle applies: twin hatches are counted as one unless they can be worked at the same time by two gangs.

These methods are designed to produce a more accurate Laytime allowance where the Charter Party does not provide a single fixed period. However, they can also create disputes if cargo distribution, hatch availability, gang allocation, shore equipment, working shifts, or terminal practice are unclear. The Statement of Facts (SOF), stowage plan, loading plan, discharge records, tally sheets, and hatch-by-hatch cargo figures should therefore be preserved carefully. A small difference in the interpretation of “hatch,” “working hatch,” or “workable hatch” may materially affect whether the final Laytime statement results in Demurrage or Despatch.

Indefinite Laytime

Indefinite Laytime refers to a situation where the Charter Party does not state a precise number of days, hours, or a fixed cargo-handling rate for loading or discharging. Instead, the time allowed is determined by the practice of the port, the speed at which the ship can receive or deliver cargo, or a combination of both. In this type of arrangement, the Shipowner may agree that cargo operations will be performed according to Custom of Port (COP), Customary Despatch (CD), Customary Quick Despatch (CQD), or Fast As Can (FAC) terms. These expressions can be commercially convenient, but they often create uncertainty because the permitted time is not measured by a clearly stated figure.

Customary Despatch (CD), Customary Quick Despatch (CQD), or Custom of Port (COP): These expressions generally mean that Charterers must load or discharge the ship with reasonable speed in accordance with the ordinary practice, facilities, labor arrangements, working hours, and operational conditions of the port concerned. The difficulty is that port custom may be flexible, difficult to prove, and different from one berth, terminal, cargo, season, or local authority to another. As a result, Charterers may be excused for delays if they can show that operations were carried out in the normal manner for that port, even where the ship remained idle for a substantial period. From the Shipowner’s perspective, this type of wording is often unattractive because it does not provide a fixed standard against which delay can easily be measured.

Because Customary Despatch (CD) and related expressions are imprecise, Shipowners may find it difficult to establish a claim for Demurrage (D) or Damages For Detention (DFD) unless there is clear evidence that Charterers failed to act with the level of speed required by the port custom. Evidence may be needed from Port Agents, terminal records, Statements of Facts, local regulations, prior cargo operations, Stevedore practices, berth availability, working-shift patterns, and cargo-handling statistics. For this reason, it is usually better to replace vague customary wording with a measurable loading or discharging rate wherever possible.

Fast As Can (FAC) or As Fast As the Ship Can Receive/Deliver: This is another form of non-fixed Laytime wording. It measures the permitted time by reference to the maximum rate at which the ship can receive or deliver cargo when the ship is fully operational and properly prepared for cargo operations. Unlike a simple Custom of Port clause, Fast As Can (FAC) focuses more directly on the ship’s own cargo-handling capability. However, this can create serious uncertainty because the actual rate may depend on ship’s gear, hatch arrangements, pump capacity, tank layout, cargo characteristics, terminal equipment, Stevedore productivity, shore storage, weather, and port working routines.

Where Fast As Can (FAC) is used, the Shipowner may carry the burden of proving the ship’s physical cargo-handling capacity. If the ship’s gear, pumps, cranes, hatches, tanks, or cargo spaces are not capable of supporting the claimed rate, the Shipowner may be unable to show that Charterers delayed the ship. Charterers, on the other hand, must normally use reasonable despatch and handle the cargo as promptly as practicable, often in line with Custom of Port (COP) or Customary Quick Despatch (CQD). In some cases, Fast As Can (FAC) may also imply that Charterers must provide shore-side arrangements sufficient to allow the ship to work at the expected rate.

The distinction between Fast As Can (FAC) and Customary Despatch (CD) is commercially important. Customary Despatch focuses mainly on what is normally done at the port, while Fast As Can may require consideration of what the ship herself could have achieved if properly supplied with cargo, labor, equipment, and access. Nevertheless, both expressions may create disputes if the Charter Party does not define the responsibilities of each party. For that reason, Shipowners and Charterers should avoid Fast As Can (FAC), Customary Despatch, and similar expressions unless the clause clearly states how cargo-handling capacity, shore-side delay, port custom, weather, congestion, and evidence of performance will be treated.

Laytime Counting and Exceptions

Once Laytime has validly commenced, the time allowed to Charterers for loading or discharging begins to run. This process is usually described as the counting of Laytime. Unless the Charter Party contains an applicable exception, Laytime continues to count until the allowance is exhausted or cargo operations are completed. If the allowed time is exceeded, the ship will normally go on Demurrage. If cargo operations are completed within the allowed time and the Charter Party provides for Despatch, Charterers may be entitled to Despatch Money.

Shipowners and Charterers commonly agree that certain events or periods will interrupt or suspend Laytime. These are known as Exception Clauses or Laytime Exceptions. Their purpose is usually to protect Charterers against time counting during periods when cargo operations cannot proceed for reasons that the parties have agreed should not be for Charterers’ account. Common examples include Sundays, Holidays, Bad Weather, Strikes, Ballasting, shifting between berths, port closures, and other agreed non-working periods or events.

Because time has direct financial value in Voyage Chartering, both Shipowners and Charterers naturally seek the interpretation most favorable to their own position. Shipowners usually prefer Laytime to run continuously once it has started, with few interruptions. Charterers usually prefer wider exceptions that protect them from delays beyond their immediate control. For this reason, Laytime Clauses should be drafted with precision and should clearly express the commercial intention of the parties. Ambiguous wording frequently leads to disputes, Demurrage claims, and arbitration.

After the commencement and length of Laytime have been identified, the Shipbroker must then examine whether any interruptions occurred during the relevant period. The most common causes of interruption in loading and discharging operations include Sundays, holidays, other non-working days or non-working periods under port custom, port congestion, bad weather, strikes, labor shortages, political unrest, shifting delays, lack of cargo, lack of transport, customs delays, or clauses referring to “any other cause beyond the control of Charterers.” However, unless the Charter Party contains an express exception covering the event, Laytime will generally continue to run once it has started.

The following are some of the most frequently used definitions and phrases regarding Laytime exceptions:

Excepted or Excluded means that the specified days or periods do not count as Laytime, even if loading or discharging actually takes place during those periods. Under Laytime Definitions 2013, Term 19, this wording is important because it prevents time from counting merely because work was performed on an otherwise excepted day, unless the Charter Party includes additional wording such as “Unless Used.”

Unless Sooner Commenced means that if Turn-Time (TT) has not yet expired but loading or discharging begins, Laytime starts at the time cargo operations commence. Turn-Time (TT) is the period allowed after Notice of Readiness (NOR) has been tendered but before Laytime formally begins. Under Laytime Definitions 2013, Term 20, this expression allows Laytime to start earlier than the ordinary commencement time if cargo work begins before the expiry of Turn-Time.

“Unless sooner commenced in which case actual time used to count” means that the actual time used for cargo operations during Turn-Time (TT) will count as Laytime. Under Laytime Definitions 2013, Term 21, Laytime still begins according to the Charter Party mechanism, but the time actually spent working cargo before that point is deducted from the Laytime allowance. The expression is narrower than a clause stating that all time during Turn-Time counts; it normally covers only the time actually used for loading or discharging.

Unless Used (UU) means that, if Laytime has already begun and cargo operations take place during an excepted period, the time actually used will count as Laytime. Under Laytime Definitions 2013, Term 22, time used during excepted periods is counted against Charterers. For example, if Sundays are normally excluded but Charterers choose to load during Sunday hours, the actual working time may count as Laytime where an Unless Used provision applies.

Strike refers to coordinated industrial action by workers that causes a complete stoppage of their ordinary duties and directly affects the ship’s loading or discharging operations. Under VOYLAYRULES 1993, Term 28, refusals to work overtime, go-slows, or work-to-rule measures that do not amount to a full stoppage are not necessarily treated as Strikes. The definition also distinguishes the strike itself from its after-effects. Congestion, cargo backlog, transport disruption, or port inefficiency continuing after the strike has ended may not automatically fall within a Strike exception unless the Charter Party wording is broad enough. This term was not carried forward into Laytime Definitions 2013, so parties should define strike wording expressly where it is important.

Weather Working Day (WWD), Weather Working Day of 24 Hours, Weather Working Day of 24 Consecutive Hours, and Weather Permitting are weather-related expressions dealt with under Laytime Definitions 2013, Terms 15, 16, 17, and 18. These expressions may appear similar, but they can produce different practical results. The effect depends on whether the weather interruption occurred during working hours, outside working hours, while the ship was alongside, or while the ship was waiting for berth. Because weather exceptions can materially affect Demurrage and Despatch calculations, the chosen expression should be understood and agreed before the Charter Party is fixed.

Laytime exceptions must always be read together with the rest of the Charter Party. A general exception may be limited by specific wording elsewhere. Similarly, an exception that applies during Laytime may not apply once the ship is on Demurrage, unless the contract clearly provides otherwise. The familiar principle “Once On Demurrage, Always On Demurrage” means that, once Laytime has expired and the ship is on Demurrage, ordinary Laytime exceptions no longer interrupt time unless the Charter Party expressly states that they continue to apply. This principle can make the exact wording of exceptions commercially decisive.

In practical Laytime work, the Statement of Facts (SOF), Notice of Readiness (NOR), port logs, terminal records, weather reports, strike notices, holiday calendars, correspondence, and agent reports must be examined carefully. It is not enough to identify that a delay occurred. The party relying on an exception must normally show that the event falls within the Charter Party wording and that it interrupted or prevented cargo operations in the manner required by the clause. Clear records and precise drafting are therefore essential to avoid uncertainty in the final Laytime account.

Some of the most frequently used abbreviations relating to Laytime Exceptions:

ATUTC: All Time Used to Count. This expression has the same practical effect as Unless Used, meaning that time actually used for loading or discharging during an otherwise excepted period will count as Laytime.

EIU: Even If Used. This means that time spent loading or discharging during excepted periods, such as Sundays or Holidays, will not count as Laytime even though cargo operations are actually carried out during that time.

FHEX: Fridays Holidays Excluded. Fridays and Holidays are excluded from Laytime.

FHINC: Fridays Holidays Included. Fridays and Holidays count as part of Laytime.

SATPMSHEX: Saturdays Post Meridiem Sundays Holidays Excluded. Time after 1200 hours on Saturdays, together with Sundays and Holidays, is excluded from Laytime.

SHEX: Sundays Holidays Excluded. Sundays and Holidays do not count as Laytime.

SHINC: Sundays Holidays Included. Sundays and Holidays count as Laytime.

Final Analysis and Result of Laytime

The completion of cargo operations is the decisive point in the final Laytime calculation. The exact moment when loading or discharging ends must be identified carefully because it determines whether the Charterer has used less than the agreed Laytime, exactly the agreed Laytime, or more than the agreed Laytime. Certain cargo-related operations may also need to be included in the calculation. These may include Trimming (T), Lashing (L), Securing (S), tallying, sampling, tank inspection, hose disconnection, document completion, or draught checking, depending on the cargo, port practice, and Charter Party wording.

The Charter Party should state clearly whether time spent on these final operations counts as Laytime. In dry bulk trades, trimming may be essential for safe carriage and stability. In breakbulk or project cargoes, lashing and securing may be necessary before the ship can safely sail. In tanker trades, the end of cargo operations may be connected with completion of pumping, draining, stripping, sampling, measurement, hose disconnection, or delivery of necessary cargo documents. If these matters are not defined, disagreement may arise over whether Laytime stopped when cargo physically stopped moving, when securing work was completed, when documents were delivered, or when the ship was ready to sail.

The final Laytime statement will show whether a payment is due from the Charterer to the Shipowner or from the Shipowner to the Charterer. If loading or discharging takes longer than the Time Allowed, the Charterer must compensate the Shipowner for the excess time. This compensation may take the form of Demurrage (D) or, in some situations, Damages For Detention (DFD). The distinction between these two remedies is commercially important because Demurrage is usually pre-agreed in the Charter Party, while Damages For Detention may require proof of actual loss.

The key distinction is that Damages For Detention (DFD) are normally treated as Unliquidated Damages (UD), meaning that the amount is not fixed in advance and may need to be established through evidence, negotiation, arbitration, or court proceedings. Demurrage (D), by contrast, is treated as Liquidated Damages (LD), because the daily rate is agreed in the Charter Party before the voyage begins. This is why most Voyage Charter Parties state a Demurrage rate in advance. It gives both parties commercial certainty and avoids the need to prove the Shipowner’s actual loss for every day of delay after Laytime has expired.

However, where delay is prolonged or where the Charter Party wording allows it, a Shipowner may attempt to claim Damages For Detention (DFD) in addition to or beyond the agreed Demurrage Rate (DR). Such a claim may arise where the delay is caused by a separate breach of contract, where the delay continues after the Demurrage regime no longer provides a complete remedy, or where the Shipowner can show losses not covered by the agreed Demurrage rate. The measure of such damages may be based on the agreed Demurrage Rate (DR), the ship’s market earning capacity, lost Freight Revenue, additional Operating Costs, or other provable financial loss, depending on the circumstances and applicable law.

Laytime Definitions 2013, Term 30, defines Demurrage as the agreed amount payable to the Shipowner for delay to the ship after Laytime has expired, where the delay is not caused by the Shipowner. The definition also makes clear that Demurrage is not subject to Laytime exceptions unless the Charter Party specifically provides otherwise. This final point is fundamental because it reflects the traditional principle known as Once On Demurrage, Always On Demurrage.

The principle Once On Demurrage, Always On Demurrage means that once the Charterer has exhausted the agreed Laytime and the ship has gone on Demurrage, ordinary Laytime exceptions no longer stop the running of time unless the Charter Party expressly says that they do. For example, if Sundays, Holidays, weather interruptions, or other exceptions would normally interrupt Laytime, they will not automatically interrupt Demurrage. The commercial reasoning is that Demurrage is compensation for detention after the agreed time has been used up. Nevertheless, modern English and US law may examine the wording and facts closely, and the principle should not be applied mechanically without considering the full Charter Party.

Demurrage is usually quoted in US Dollars per day, with part days calculated pro rata. The rate should be commercially realistic. If it is too low, the Shipowner may be undercompensated for delay and may lose the opportunity to perform another profitable Fixture. If it is too high, Charterers may resist the term during negotiations or seek wider exceptions. The Demurrage Rate (DR) should therefore reflect the ship’s earning potential, market level, operating cost, bunker consumption in port, opportunity cost, and the risk of delay at the relevant ports.

Address Commissions (ADCOM) and Brokerages (B) are often deducted from Demurrage payments, but this should be clearly stated in the Commission or Brokerage Clause. If the Charter Party is silent, disputes may arise over whether commission applies only to Freight or also to Demurrage, Deadfreight, Ballast Bonus, Over Freight, or other payments. Clear wording avoids uncertainty and ensures that the final Laytime account can be calculated without separate disagreement over deductions.

If the ship completes cargo operations before the allowed Laytime has expired, the Charterer may become entitled to Despatch Money (DM) (Dispatch Money), provided the Charter Party contains a Despatch provision. Despatch Money is usually calculated at Half the Daily Rate of Demurrage (DHD: Despatch Half Demurrage), although the rate is negotiable. Despatch is a reward to Charterers for saving the Shipowner’s time by completing loading or discharging before the full Laytime allowance has been consumed.

Laytime Definitions 2013, Term 31, defines Despatch Money as the agreed amount payable by the Shipowner if the ship completes loading or discharging before Laytime has expired. Only Charterers with strong bargaining power are usually able to negotiate Despatch at the same daily rate as Demurrage. In many dry bulk trades, Despatch at half Demurrage remains the usual commercial compromise. In trades where ships regularly turn around quickly, such as Ro/Ro Ships, Car Carriers, short-sea ships, or Coaster Ships, the Charter Party may provide for Free Despatch, meaning that no Despatch Money is payable even if time is saved. In tanker Voyage Charters, Despatch Money (DM) is generally not included.

Regarding Despatch Money (DM), the following definitions and terms are important:

Despatch On All “Working Time Saved” (WTS) or “On All Laytime Saved” means that Despatch Money (DM) is payable for the period between completion of loading or discharging and the expiry of Laytime, but excluding periods that would not have counted as Laytime because they are excepted. Under Laytime Definitions 2013, Term 32, this method benefits Shipowners more than an all-time-saved basis because Sundays, Holidays, weather exceptions, or other excluded periods may be deducted from the saved time before Despatch is calculated.

Despatch On “All Time Saved” (ATS) means that Despatch Money (DM) is payable for the full period between completion of loading or discharging and the end of Laytime, including periods that would otherwise have been excluded from Laytime. Under Laytime Definitions 2013, Term 33, this method is usually more favorable to Charterers because it gives credit for all time saved, including Sundays, Holidays, and other excepted periods. The difference between WTS and ATS can be financially significant, especially where cargo operations finish before a weekend or holiday period.

The final Laytime analysis should therefore identify the relevant Laytime allowance, the valid commencement point, the time actually used, the applicable exceptions, the point at which cargo operations ended, and whether Demurrage or Despatch is payable. It should also check whether commission or brokerage applies, whether Despatch is calculated on Working Time Saved or All Time Saved, and whether any special clauses alter the ordinary rules. A well-prepared Laytime calculation is not merely a mathematical exercise. It is a legal and commercial reconstruction of the voyage events, supported by the Notice of Readiness (NOR), Statement of Facts (SOF), port records, weather reports, correspondence, and the exact wording of the Charter Party.

In addition, a comparison of key Despatch Terms and commonly used abbreviations is provided below:

ATSBENDS or ATSBE: All Time Saved Both Ends. This expression identifies the basis on which Despatch Money (DM) is calculated. It has the same practical meaning as DBEATS. Under this method, Despatch is payable at both ends, meaning for both loading and discharging operations, and it is calculated on the total time saved across both operations.

Accordingly, the Despatch amount is calculated by reference to the actual time saved from early completion of loading and discharging up to the expiry of the total Laytime allowed for both operations. This includes periods that would otherwise be excluded from Laytime. The result should be compared with AWTSBENDS, where only working or Laytime-saving periods are included.

ATSDO: All Time Saved Discharging Only. Under this expression, Despatch Money (DM) is payable only for time saved during the discharging operation. The calculation runs from completion of discharging until the expiry of the Laytime allowed for discharge, including periods that would otherwise be excepted from Laytime.

ATSLO: All Time Saved Loading Only. This expression means that Despatch Money (DM) is payable only for time saved during the loading operation. It is calculated from the completion of loading until the expiry of the Laytime allowed for loading, including any excepted periods that fall within the saved time.

AWTSBENDS, AWTSBE, ALTSBENDS, or ALTSBE: All Working Time Saved Both Ends or All Laytime Saved Both Ends. These expressions describe a Despatch Money (DM) calculation method and are generally synonymous with DBELTS. Despatch is payable at both ends, meaning during loading and discharging, but only for the working time or Laytime actually saved across both operations.

Under this method, Despatch is calculated from the early completion of both operations until the expiry of the total Laytime allowed for loading and discharging, but excluding periods that are excepted from Laytime. This is usually less favorable to Charterers than ATSBENDS, because Sundays, holidays, weather exclusions, or other excepted periods may be deducted before Despatch is calculated.

AWTSDO or ALTSDO: All Working Time Saved Discharging Only or All Laytime Saved Discharging Only. Despatch is payable only for working time saved during discharging. The calculation runs from the completion of discharging to the expiry of the Laytime allowed for discharge, excluding periods that would not have counted as Laytime.

AWTSLO or ALTSLO: All Working Time Saved Loading Only or All Laytime Saved Loading Only. Despatch Money (DM) is payable only for working time saved during loading. It is calculated from completion of loading until the expiry of the Laytime allowed for loading, excluding any excepted periods.

DBEATS: Despatch Payable At Both Ends On All Time Saved. This is another way of expressing ATSBENDS. Despatch is payable for both loading and discharging and is calculated on all time saved in total across both ends, including periods that would otherwise be excepted from Laytime.

DBELTS: Despatch Payable At Both Ends On Laytime Saved. This expression is equivalent to AWTSBENDS. Despatch is payable at both loading and discharging ports, but only for Laytime or working time saved, excluding periods that would not have counted as Laytime.

Demurrage (D) and Damages For Detention (DFD)

The familiar expression Once On Demurrage, Always On Demurrage means that ordinary Laytime Exception Clauses do not apply after the ship has gone on Demurrage, unless the Charter Party expressly provides that they continue to apply. Once the allowed Laytime has been exhausted, the Charterer is no longer using permitted Laytime; the Charterer is detaining the ship beyond the agreed allowance. For that reason, Demurrage normally runs continuously after Laytime expires.

In practical terms, this means that once the ship is on Demurrage, time usually counts 24 hours a day, seven days a week, regardless of events that might previously have interrupted Laytime, such as bad weather, Sundays, holidays, strikes, or ordinary non-working periods. However, time may still be excluded where the delay is caused by the Shipowner, the Shipowner’s servants, the Ship Master, the crew, or by a deficiency connected with the ship herself. The exact meaning of “fault” in this context can be difficult. It may include negligence, unseaworthiness, defective cargo gear, inability to provide power to winches, lack of readiness, or another ship-side failure, depending on the Charter Party wording and the governing law.

When the ship is on Demurrage, it is therefore not always simple to decide whether all ship-side delays stop Demurrage or only delays caused by negligence or breach by Shipowners. Tanker Charter Parties often deal with this issue more expressly by stating that certain events “shall not count for Laytime or as time on Demurrage”. This type of wording is important because it makes clear that the relevant exception applies not only before Laytime expires but also after the ship has gone on Demurrage.

The Demurrage Rate (DR) is the agreed compensation payable to Shipowners when loading and/or discharging takes longer than the permitted Laytime. It is usually stated as a fixed amount per 24 hours, with pro rata calculation for any part of a day. Because Demurrage is treated as Liquidated Damages (LD), the amount is fixed in advance by the Charter Party. Shipowners do not have to prove their actual loss for the delay period covered by Demurrage. If the Shipowner’s real loss is higher than the agreed Demurrage amount, the Shipowner is generally limited to the agreed rate. Equally, if the Shipowner’s actual loss is lower, the Shipowner is still entitled to recover Demurrage at the agreed rate.

Some Charter Party forms or negotiated clauses limit the period for which Demurrage may run. GENCON 1976, Part II, Clause 7, “Demurrage,” provides an example by allowing “Ten running days on Demurrage at the rate stated in Box 18 per day or pro rata for any part of a day, payable day by day, to be allowed for Merchants altogether at Ports of loading and discharging.” This type of cap restricts the period during which the agreed Demurrage Rate applies. The ten-day cap was removed from the GENCON 1994 form, which reflects a more modern approach to Demurrage exposure.

Where Demurrage time is capped and the agreed Demurrage period has been fully used, Shipowners may seek to recover Damages For Detention (DFD) for further delay. Unlike Demurrage, Damages For Detention (DFD) are not automatically payable at a pre-agreed rate. Shipowners must prove the actual loss suffered after the Demurrage period has expired. In such cases, the Demurrage Rate (DR) may operate as Prima Facie Evidence of the ship’s daily loss, but it is not necessarily conclusive. The parties may still argue that the actual loss was higher or lower, depending on market conditions, lost employment, operating costs, bunker consumption, and the commercial opportunities lost because of the detention.

The distinction between Damages For Detention (DFD) and Demurrage (D) is therefore important. Damages For Detention (DFD) are Unliquidated Damages, meaning that the amount is not fixed in advance and must be established by evidence, negotiation, arbitration, or court decision. Demurrage, by contrast, is Liquidated Damages (LD), fixed in the Charter Party before the voyage begins. Since proving unliquidated damages can be expensive, slow, and uncertain, Shipowners and Charterers usually prefer to agree a realistic Demurrage Rate (DR) at the Fixture stage.

As an alternative to capping Demurrage and then moving into Damages For Detention (DFD), the parties may agree an escalating or tiered Demurrage Rate (DR). For example, the Charter Party may provide: “Demurrage for the first 9 days is agreed at US$10,000 per 24 hours, thereafter US$15,000 per 24 hours.” This type of clause gives the parties greater certainty while recognizing that prolonged detention may expose Shipowners to higher commercial losses, especially in a strong Freight Market or where the ship has follow-on employment.

Clauses limiting the duration of Demurrage do not fully solve another difficult situation: the failure of Shippers to provide the agreed cargo quantity while Charterers do not clearly declare that no further cargo will be available. In such cases, Shipowners may face a difficult operational and legal decision. If the ship sails too early, Charterers may allege that Shipowners failed to load the contractual cargo quantity. If the ship waits too long, Shipowners may lose follow-on employment and suffer additional costs.

If the Demurrage Rate (DR) is commercially adequate and Charterers continue to pay Demurrage, Shipowners may be financially protected while waiting for the balance of the cargo. However, the position becomes more difficult where the Demurrage Rate is low, payments are delayed or unpaid, or Shipowners have other commitments for the ship. In those circumstances, Shipowners should seek legal advice before deciding whether to wait, sail, issue protest, claim Deadfreight, terminate the loading operation, or reserve rights for Damages For Detention (DFD). The correct course will depend on the Charter Party wording, cargo availability, communications with Charterers and Shippers, the extent of the delay, and the evidence available.

For both Shipowners and Charterers, the safest approach is to deal with Demurrage and detention risks clearly at the negotiation stage. The Charter Party should state the Demurrage Rate, whether Demurrage is capped, whether exceptions continue to apply on Demurrage, whether commission and brokerage are deductible from Demurrage, when Demurrage is payable, and what happens if delay continues beyond any capped period. Clear drafting reduces the risk of later disputes and gives both parties a predictable financial framework for dealing with delay after Laytime has expired.

Demurrage is usually calculated and paid after the cargo has been fully discharged and delivered. However, if Shipowners want to preserve the possibility of exercising a lien over the cargo as security for a Demurrage claim, the Charter Party should state clearly that Demurrage Is Payable Day By Day. Without express wording of this kind, the date on which Demurrage becomes payable may be uncertain, and that uncertainty can make it difficult for Shipowners to rely on a cargo lien as practical security. GENCON 1976, Part II, Clause 7, “Demurrage,” contained wording that made Demurrage payable “day by day.” GENCON 1994, Part II, Clause 7, “Demurrage,” modernized the position by providing:

“Demurrage at the loading and discharging Port is payable by the Charterers at the rate stated in Box 20 in the manner stated in Box 20 per day or pro rata for any part of a day. Demurrage shall fall due day by day and shall be payable upon receipt of the Owner’s invoice.”

If Demurrage remains unpaid in accordance with this provision, Shipowners may serve a Written Notice to the Charterers requiring payment within 96 running hours. If Charterers fail to remedy the default within that period, and the ship is still at the loading port, Shipowners may have the right to terminate the Charter Party and claim damages for losses resulting from the termination. This remedy, found in GENCON 1994, Part II, Clause 7, is commercially significant because it gives Shipowners a practical response where delay is continuing and Demurrage is not being paid as it falls due.

The day-by-day payment mechanism is particularly important in trades where cargo operations may be prolonged, where Charterers’ financial standing is uncertain, or where Shipowners are concerned that Demurrage may accumulate without prompt settlement. It also helps avoid the situation where Shipowners must wait until the end of the voyage before seeking payment. In practice, Shipowners should ensure that invoices are issued promptly, supporting documents are preserved, and any notice procedure required by the Charter Party is followed strictly. Failure to comply with notice requirements may weaken the Shipowners’ position, even where a substantial Demurrage balance is due.

Despatch Money (DM)

Despatch Money (DM), also written as Dispatch Money, is the amount payable by Shipowners to Charterers when cargo operations are completed before the agreed Laytime has been fully used, provided the Charter Party contains a Despatch provision. When loading or discharging finishes early, the ship is released back to Shipowners sooner than expected, enabling Shipowners to proceed to the next employment, reduce port time, or improve the commercial result of the voyage. In return for this time saving, Shipowners may agree to pay Charterers a financial allowance known as Despatch.

In dry cargo Charter Parties, Despatch Money (DM) is commonly agreed at Half the Demurrage Rate (DHD: Despatch Half Demurrage). This reflects the usual commercial balance: Charterers pay the full Demurrage rate when they exceed the agreed Laytime, while Shipowners reward Charterers at half that rate when time is saved. The exact rate is negotiable and must be stated in the Charter Party. In tanker Voyage Charters, Despatch is generally not payable unless the parties add a specific rider clause providing for it.

Despatch can be calculated in different ways. The two most important methods are All Time Saved and All Working Time Saved. These expressions may appear similar, but they can produce different financial outcomes. The difference lies in whether excepted periods, such as Sundays, Holidays, bad weather periods, or other non-counting periods, are included in the saved time.

Under the All Time Saved method, Charterers receive Despatch for the full amount of time saved between the completion of cargo operations and the theoretical expiry of Laytime. This calculation includes periods that would otherwise have been excepted from Laytime. For example, if the ship finishes loading before a weekend and Laytime would otherwise have continued through that weekend, Charterers may receive Despatch for the entire saved period, including the weekend, if the Charter Party provides for All Time Saved. Under this method, Laytime Exceptions are not deducted from the Despatch Calculation.

By contrast, under the All Working Time Saved method, Despatch is calculated only on the Laytime that would have counted if the ship had remained in port. Excepted periods are excluded from the calculation. This method is more favorable to Shipowners because Charterers are not rewarded for time that would not have counted as Laytime in any event. For example, if Sundays and Holidays are excluded from Laytime, those periods are also excluded when calculating Despatch Money (DM) on an All Working Time Saved basis.

Charter Parties do not always specify when Despatch Money (DM) must be paid. In trades where Despatch is frequently agreed and commercially expected, the Charter Party may provide that part of the Despatch amount is payable after time counting begins or after cargo operations are completed. In other cases, Despatch is dealt with in the final voyage settlement. The final settlement of Despatch is then offset against the remaining Freight. To avoid disputes, the Charter Party should state the Despatch rate, the calculation basis, the time of payment, whether Despatch applies at loading, discharging, or both ends, and whether brokerage or commission applies to Despatch.

Stages and Documents of Laytime Calculations

A consistent method should be used for Laytime Calculation, even though Shipowners, Charterers, operators, and Shipbrokers may each have their own preferred formats. Standard Charter Party Forms can reduce uncertainty, but the actual calculation must still be based on the exact wording of the Charter Party and the factual record of the port call. A reliable Laytime calculation is not simply an arithmetic exercise. It is a structured review of contractual terms, notices, port events, cargo operations, interruptions, and the final balance of Demurrage or Despatch.

The usual stages involved in Laytime Calculation include:

• Identifying the exact point at which Laytime commences;
• Establishing the total duration of Laytime allowed under the Charter Party;
• Reviewing and applying any interruptions, exceptions, or excluded periods;
• Determining the point at which Laytime ends;
• Preparing the final calculation and determining whether Demurrage or Despatch is payable.

To carry out accurate Laytime Calculations, the Shipbroker requires access to the following documents:

Copy of the Voyage Charter Party: The Charter Party is the starting point for every Laytime calculation. The Shipbroker must examine all clauses dealing with the time allowed for loading and discharging, the commencement of Laytime, Notice of Readiness (NOR), Arrived Ship requirements, exceptions, interruptions, Demurrage, Despatch, commissions, liens, and payment. The Shipbroker should also review rider clauses, recap terms, amendments, typed clauses, and any special port clauses. Where printed clauses and rider clauses conflict, the negotiated wording may be decisive. Without a full review of the Charter Party, the Laytime calculation may be commercially and legally unreliable.

The Charter Party should be checked to determine whether it is a Port Charter Party, Berth Charter Party, or Dock Charter Party. It should also be reviewed for clauses such as WIBON, WIPON, WIFPON, WCCON, “time lost waiting for berth to count,” “reachable on arrival,” “always accessible,” “unless used,” “even if used,” SHEX, SHINC, weather exceptions, strike exceptions, and other provisions affecting time counting. These clauses can materially change the final Laytime result and must be applied before any Demurrage or Despatch figure is calculated.

Copy of Notice of Readiness (NOR): The Notice of Readiness (NOR) is the formal notice by which the ship declares that she has arrived and is ready to load or discharge cargo. It is a key document because, in most Voyage Charter Parties, Laytime cannot begin unless a valid Notice of Readiness (NOR) has been tendered in accordance with the Charter Party. The notice should show the ship’s name, the port, the place of tender, the date and time of tender, the recipient, the method of transmission, and the declaration that the ship is ready in all respects to load or discharge.

When the ship arrives at the customary anchorage or waiting place at the loading port, the Ship Master or Port Agent should notify Charterers, Shippers, Receivers, or their representatives by the method permitted in the Charter Party. This may be by letter, email, fax, electronic port system, radio message, telephone message confirmed in writing, or another accepted communication method. If the ship is not yet alongside the berth, the Charter Party must be checked to confirm whether Notice of Readiness (NOR) can be tendered from the anchorage, waiting area, or outside port limits. Clauses such as WIBON, WIPON, WIFPON, and WCCON may be critical.

A physical Notice of Readiness (NOR) may be completed and signed after the ship berths, but modern practice often allows electronic tender before berthing if the Charter Party permits it. The Ship Master, and in some cases the Port Agent acting on behalf of the ship, must ensure that the Notice of Readiness (NOR) is properly tendered to the correct party at the correct time and in the correct form. If the notice is tendered to the wrong recipient, outside permitted hours, before the ship is an Arrived Ship, or before the ship is ready, Charterers may challenge its validity.

The ship does not always need to have completed every inspection, cleaning check, or formal clearance before tendering a valid Notice of Readiness (NOR), especially where the Charter Party contains agreed exceptions such as WIFPON or WCCON. However, if the ship fails a required inspection after tendering Notice of Readiness (NOR), the earlier notice may be treated as invalid, depending on the wording and the reason for the failure. In that event, a fresh Notice of Readiness (NOR) should be tendered after the ship has passed reinspection and is genuinely ready.

Notice of Readiness (NOR) is important because it informs Charterers that the ship is available and ready so that cargo arrangements may proceed. It also triggers the running of Notice Time where the Charter Party provides for a grace period before Laytime begins. Laytime normally begins only after the ship has arrived at the agreed destination, is physically and legally ready for cargo operations, and a valid Notice of Readiness (NOR) has been properly tendered by the Ship Master or Port Agent. The Charter Party may state that Laytime begins immediately, after a fixed number of hours, at the next working shift, or at a specified time after the tender and acceptance of Notice of Readiness (NOR).

At the discharging port, a Notice of Readiness (NOR) may not be required under certain legal principles unless the Charter Party specifically requires it. Nevertheless, as a matter of good practice, Shipowners often tender Notice of Readiness (NOR) at every loading and discharging port where Laytime may count. This creates a clear record and reduces later disputes. However, tendering a notice at the discharging port does not automatically give Charterers a fresh Notice Time unless the Charter Party provides for it.

Statement of Facts (SOF): The Statement of Facts (SOF) is one of the most important documents used in Laytime Calculation. It is usually attached to, or used together with, the Time Sheet (TS) and records the sequence of events that occurred while the ship was at the loading or discharging Port. The Statement of Facts (SOF) is normally prepared by the Port Agent and sent to the Shipowner after the ship has sailed. It provides the factual basis for determining when Laytime started, whether it was interrupted, when cargo operations were completed, and whether Demurrage or Despatch is payable.

Both Shipowners and Charterers may use their own Statement of Facts (SOF) and Time Sheet (TS) formats, but standard Statement of Facts (SOF) forms have also been developed by BIMCO and endorsed by FONASBA. These forms are designed to record the essential information required for a reliable Laytime Calculation. The details normally include the date and time of the ship’s arrival, tendering of the Notice of Readiness (NOR), acceptance or rejection of the Notice of Readiness (NOR), commencement and completion of cargo operations, daily cargo progress, stoppages, interruptions, weather delays, shifting, waiting periods, and any other event that may affect the counting of Laytime.

The Statement of Facts (SOF) should be signed by the relevant parties involved in the port operation. It usually contains signature spaces for the Port Agent who prepares the document, the Ship Master, and a Charterer or terminal representative. Signing the Statement of Facts (SOF) does not always mean that every party accepts the legal consequences of the events recorded, but it does confirm the factual record, unless a party signs with reservations or inserts protest comments. For this reason, the Ship Master should review the Statement of Facts (SOF) carefully before signing and should make written remarks if any entry is inaccurate, incomplete, or disputed.

Time Sheets (TS): Time Sheets (TS) are detailed chronological records used to calculate Laytime, Demurrage, and Despatch. They function as a working diary of the port call, showing how time was used from the ship’s arrival until completion of loading or discharging. A Time Sheet (TS) records cargo-working periods, waiting time, Laytime Exceptions, interruptions, shifting, weather stoppages, holidays, non-working periods, and other events that may either count or not count under the Charter Party. The purpose of the Time Sheet (TS) is to show clearly whether the allowed Laytime has been exceeded or whether time has been saved.

Time Sheets (TS)

Time Sheet (TS) generally contains the following information:

• Date and time when the ship arrives at the loading or discharging Port.
• Date and time when the ship arrives at the loading or discharging Berth.
• Date and time when the ship becomes physically and legally ready to start loading or discharging.
• Date and time when Notice of Readiness (NOR) is tendered.
• Date and time when Notice of Readiness (NOR) is accepted, rejected, or otherwise acknowledged by Charterers or their representatives.
• Date and time when loading or discharging operations commence.
• Dates and hours during which loading or discharging operations actually take place.
• Date and time when LAYDAYS commence.
• Loading and discharging rates agreed in the Charter Party.
• Laytime interruptions, exceptions, stoppages, and excluded periods under the Charter Party.
• Daily quantities of cargo loaded or discharged.
• Total quantity of cargo loaded or discharged.
• The total time allowed for loading and discharging under the Laytime Clause.
• Date and time when loading or discharging is completed.

Time Sheet (TS) accuracy depends on several key factors:

• The Definition of Laytime, including whether Laytime is definite, calculable, or indefinite.
• The Category of Laytime, including whether loading and discharging are calculated separately, averaged, or treated as reversible at Charterers’ option.
• The Laytime Calculation Method, including the exact Charter Party wording and any expressions such as “per workable hatch per day,” “Sundays and Holidays excepted,” “unless used,” “weather working day,” or “all time saved.”
• The Commencement of Laytime, including whether Laytime begins immediately after a valid Notice of Readiness (NOR), after Notice Time expires, at the next working shift, or at another agreed time.

Although BIMCO has created standard Time Sheet forms, many Shipowners, Charterers, operators, and Shipbrokers continue to use their own internal templates. This is acceptable provided that the Time Sheet (TS) captures all information required to apply the Charter Party correctly. The most important point is not the design of the form, but the accuracy, completeness, and reliability of the data recorded. A poorly prepared Time Sheet (TS) can lead to incorrect Demurrage or Despatch calculations and may create unnecessary disputes.

In practice, the Time Sheet (TS) should be prepared by comparing the Charter Party terms with the Statement of Facts (SOF), Notice of Readiness (NOR), port logs, weather reports, terminal records, cargo documents, and communications between the parties. The Shipbroker should not simply copy the Statement of Facts (SOF) into the Time Sheet (TS) without analysis. Each event must be examined to determine whether it counts as Laytime, is excluded by an exception, falls during Notice Time, occurs after Demurrage has started, or affects the final balance of time used or time saved.

Tanker and Dry Bulk Carrier Laytime Calculations

Laytime Calculations for tankers and dry bulk carriers follow the same basic legal and commercial principles, but the practical issues are often different. In both trades, the calculation begins with the Charter Party, Notice of Readiness (NOR), Statement of Facts (SOF), and Time Sheet (TS). However, the events that matter most, the way cargo operations are measured, and the usual Laytime wording can vary significantly between liquid cargoes and dry cargoes.

In dry bulk trades, Laytime often depends on loading and discharging rates expressed in metric tons per day, weather working days, hatch-based calculations, SHEX or SHINC wording, Despatch provisions, and port-working practices. Delays may arise from rain, cargo availability, trimming, shifting, hatch preparation, Stevedore productivity, berth congestion, shore equipment, customs delays, or interruptions caused by local holidays. Dry bulk Laytime calculations therefore often require close attention to weather exceptions, working days, cargo quantity, and the agreed loading or discharging rate.

In tanker trades, Laytime is commonly more standardized, but still technically demanding. Tanker Charter Parties often allow a fixed period, commonly 72 running hours, for loading and discharging combined or for all purposes, depending on the wording. Despatch Money (DM) is usually not payable in tanker trades unless expressly agreed. Tanker Laytime may also depend on events such as NOR tendering, free pratique, tank inspection, commencement of loading, completion of pumping, stoppages due to shore restrictions, sampling, ullaging, cargo measurement, hose connection, hose disconnection, and delivery of cargo documents. Pumping performance and terminal readiness can also become central issues.

For both tanker and dry bulk carrier Laytime Calculations, the final result must be built from reliable documents and precise Charter Party interpretation. The same factual event may have a different effect depending on the trade and wording used. A rain stoppage may be decisive in a dry bulk weather working day calculation, while hose disconnection or cargo documentation may be decisive in a tanker calculation. For this reason, Shipbrokers, Shipowners, and Charterers should treat Laytime Calculation as a structured legal and commercial exercise, not merely as a mechanical time-counting process.

Tanker Laytime Calculations

Compared with Dry Bulk Carrier Laytime Calculations, Tanker Laytime Calculations are often more straightforward. The dry bulk market involves a wider range of Shipowners, Charterers, commodities, ports, loading methods, and Charter Party Forms, many of which contain different Laytime expressions and exceptions. Dry bulk ships also frequently trade to less developed ports where cargo-handling rates, weather interruptions, berth congestion, and local working practices can vary greatly. Tanker trades, by contrast, are usually concentrated among fewer Tanker Charterers, more standardized terminal systems, and a smaller number of Tanker Charter Party Forms with broadly similar Laytime structures.

This does not mean that Tanker Laytime is simple. Tanker operations involve their own technical issues, including tank inspection, cargo measurement, sampling, heating, pumping performance, hose connection and disconnection, Crude Oil Washing (COW), residue handling, documentation, terminal restrictions, and shore-line pressure. However, the basic Laytime framework in tanker trades is often more uniform than in dry bulk trades, especially where the Charter Party incorporates Worldscale Hours Terms and Conditions or uses a standard tanker form.

In Tanker Charter Parties, Laytime normally begins after a valid Notice of Readiness (NOR) has been tendered. Unless the Tanker Charter Party expressly provides otherwise, the time when Notice of Readiness (NOR) is accepted by Charterers is usually less important than the time when it is validly tendered and becomes effective under the Charter Party. The ship must still be at the place where NOR may properly be given and must be ready in the contractual sense.

In many Tanker Charter Party Forms, where the tanker arrives at the port and anchors because no berth is available, time begins six (6) hours after Notice of Readiness (NOR) has been tendered. This reflects the common tanker practice of allowing a short preparation period after the ship declares readiness. If the tanker proceeds directly to the Berth without delay, the starting point may be different. Depending on the Charter Party Form, time may begin upon berthing, upon commencement of loading or discharging, or upon expiry of the agreed notice period, whichever occurs first.

BPVOY 4, Part 2, Clause 7.3.2, “Laytime/Demurrage,” provides a useful example:

“Laytime, or if the ship is on Demurrage, Demurrage shall commence, at each loading and each discharge Port, upon the expiry of six (6) hours after a valid Notice of Readiness (NOR) has become effective as determined under Clause 6.3, Berth or no Berth, or when the ship commences loading, or discharging, whichever first occurs.”

This wording is designed to prevent disputes over whether time begins at anchorage, at berth, or at the start of cargo operations. It also protects Shipowners where the ship is ready but cannot berth because of congestion or berth unavailability. Clause 7 of BPVOY 4 was largely carried forward in substance but appears as Clause 11 in the later BPVOY 5 form.

In Tanker Charter Parties, the total duration of Laytime is frequently defined by Worldscale Hours Terms and Conditions (WSHTC or WHTC). Where these terms are incorporated, Laytime is calculated by reference to the latest applicable edition of Worldscale (WS), the annual tanker chartering reference publication issued by Worldscale Association (London) Limited and Worldscale Association (NYC) Inc. Worldscale is often treated as a commercial handbook for tanker market professionals because it contains route rates, demurrage tables, laytime assumptions, and related tanker trading guidance.

The Worldscale 2015 edition, Preamble Part B.2, “Laytime,” provides:

“Time allowed for loading and discharging shall be 72 hours and shall be subject to whatever qualifications, if any, that are stated in the applicable Charter Party or contract.”

The standard 72-hour allowance is widely used in tanker voyage trading, but it is not universal. Some Tanker Charter Parties provide for 96 hours, especially where the trade, cargo, terminal, or operational pattern requires more time. In other cases, Laytime may be calculated by reference to a cargo-handling rate rather than a fixed number of hours. This approach may be used in vegetable oil trades, chemical cargoes, parcel tanker operations, or other liquid cargoes where loading and discharging rates differ depending on cargo grade, viscosity, temperature, shore facilities, or pumping arrangements.

In Tanker Charter Parties, Laytime often continues beyond the physical completion of loading or discharging in a way that differs from many Dry Bulk Cargo Laytime calculations. In dry bulk trades, Laytime usually ends when cargo operations are completed, subject to any special provisions for trimming, lashing, securing, draught survey, or documentation. In tanker trades, Laytime commonly continues until cargo hoses have been disconnected, because hose disconnection marks the practical end of the tanker’s cargo-handling operation and release from the terminal connection.

Some Shipowners have faced additional delays after hose disconnection, particularly while waiting for cargo documents, bills of lading, certificates of quality, certificates of quantity, customs documents, terminal papers, or port clearance. In response, Shipowners have sometimes advanced Claims For Detention where the ship was delayed after cargo operations were complete. Certain Charter Party Forms now address this issue expressly by stating that time will count if the ship is delayed for Charterers’ purposes beyond a stated period, often three hours, after hose disconnection. Such wording helps determine whether post-hose-disconnection delay falls within Laytime, Demurrage, or separate detention.

Once a valid Notice of Readiness (NOR) has been tendered and the tanker is at the place where time may begin under the Charter Party, subsequent time generally counts as Laytime unless the delay is caused by the tanker or is excluded by an express Charter Party clause. As with Dry Bulk Cargo Charter Parties, certain events may suspend or reduce Laytime in tanker operations. These are usually referred to as excepted periods or interruptions, but their effect depends entirely on the wording of the Tanker Charter Party.

Common examples of Excepted Periods and disputed interruptions in tanker Laytime include the following:

• Breakdowns, defects, or inefficiencies involving the tanker. These may include pumping problems at the discharge port, failure of cargo pumps, defective valves, malfunctioning inert gas systems, inadequate heating coils, or inability to maintain cargo temperature. Pumping delays are a frequent source of dispute. Tanker Charterers may allege that the tanker failed to perform at the required discharge rate, while Shipowners may argue that the true cause was excessive back-pressure in shore lines, terminal restrictions, shore tank limitations, or inadequate receiving facilities. Heating disputes can also be complex, especially where Shipowners blame low ambient temperature, long shore pipelines, inadequate shore reception, or cargo characteristics for delay.
• Delays caused by the Shipowner’s fault, or by subcontractors and personnel for whom the Shipowner is responsible. If delay arises from ship-side failure, crew negligence, machinery defect, lack of readiness, defective equipment, or another matter within Shipowners’ responsibility, the relevant time may be excluded from Laytime or Demurrage, depending on the Charter Party wording. This principle is particularly important after Laytime has expired, because ordinary Laytime exceptions may no longer apply unless the Charter Party states that the relevant event does not count as time on Demurrage.
• Shifting from anchorage to berth after Notice of Readiness (NOR) has been tendered. In many tanker forms, the time spent shifting from anchorage or waiting area to berth may suspend Laytime, unless the Charter Party provides otherwise. The reason is that this period is often treated as a movement period rather than cargo-working or waiting time. However, the exact treatment must be checked against the governing form, because some clauses allow time to count continuously after NOR, while others exclude shifting time.
• Bad Weather has a different practical impact in tanker trades than in Dry Bulk Cargo trades. Rain may stop loading grain, fertilizer, steel, cement, or other dry cargoes, but it does not usually stop closed-system tanker loading or discharging once the ship is safely alongside and connected. Nevertheless, adverse weather can still affect tanker operations, especially during berthing, unberthing, hose connection, offshore loading, Single Buoy Mooring (SBM) operations, exposed terminals, swell-affected berths, and ports with strict safety limits. Tanker Charter Party Forms and Rider Clauses often deal with weather delays specifically. Some clauses state directly that weather delays do not count as Laytime, while others use broader wording such as “delays beyond Charterers’ control shall not count.”

SHELLVOY 6, Part II, Clause 13.1(a), “Notice of Readiness (NOR)/Running Time,” does not generally exclude bad weather delays after berthing, but time may not count where weather prevents berthing. Other forms, including EXXONVOY ’90 and BPVOY 4, may treat bad weather periods as half Laytime. The widely used Conoco Weather Clause provides:

“delays in Berthing for loading or discharging and any delays after Berthing which are due to weather conditions shall count as one half Laytime or as time on Demurrage at one half demurrage rate.”

This half-time approach is a compromise. It recognizes that weather delay is not entirely a Shipowner’s risk or entirely a Charterer’s risk, and it allocates the financial burden between the parties. However, the clause must be read carefully. It may apply differently before berthing, after berthing, during Laytime, and once the ship is already on Demurrage.

• Delays arising from conditions at nominated ports may also affect Laytime if those conditions are not caused by Charterers’ fault or neglect and could not reasonably have been avoided by the Ship Master. Tanker Charter Parties often include clauses dealing with port restrictions, terminal delays, congestion, government controls, pilotage suspension, safety restrictions, swell, or other port-related interruptions. The scope of these clauses can be controversial because Charterers usually nominate the port, while Shipowners operate the ship and remain responsible for navigation and seamanship.
• Strikes require special consideration. Dry Cargo Charter Parties frequently contain detailed strike clauses, but strike provisions are less common in Tanker Charter Parties. Historically, strikes have caused less disruption at many oil terminals because these terminals are often operated under long-term arrangements by or for major oil companies. Where tanker forms do refer to “strike” or “labour dispute,” the wording may provide that time lost by such events counts as Half Laytime or Half the Demurrage Rate. A strike generally means a collective refusal by workers to perform their normal duties because of a grievance, and it may include sympathy strikes where the wording is wide enough. Work-to-rule, refusal of overtime, go-slows, or transport disruption after the strike has ended may require separate analysis.
• Delays connected with Crude Oil Washing (COW) and Disposal of Residues are another important tanker-specific issue. Crude Oil Washing (COW) is generally carried out in accordance with MARPOL (International Convention for the Prevention of Pollution from Ships, 1973 and its 1978 Protocol), as well as terminal instructions, flag requirements, company procedures, and Charterer requirements. COW may affect the duration of discharge, especially where Charterers require particular washing procedures, where shore reception facilities are limited, or where residues must be retained or discharged ashore.

MARPOL generally prevents unlawful discharge of oily residues at sea, requiring residues to be retained on board or properly discharged to reception facilities. Modern Tanker Charter Party Forms often contain wording giving Charterers the right to require residues to be discharged ashore, while compensating Shipowners for lost Freight where segregation or retention reduces cargo capacity. SHELLVOY 6, Part II, Clause 40, “Oil Pollution Prevention/Ballast Management,” is one example of such wording. Although many Tanker Charterers are willing to take residue oil and pay Freight on it, shore facilities may refuse residues if they are incompatible with the next cargo, contaminated, unsuitable for reception, or not accepted under terminal rules. ASBATANKVOY is notable because it places a wider obligation on Charterers to arrange shore discharge of residues.

A well-drafted residue disposal clause should deal with multiple Tanker Charterers, absence of suitable reception facilities, incompatible residues, segregation limits, loss of cargo space, shifting costs, delay, and responsibility for shore reception. From a Laytime perspective, SHELLVOY 6, Part II, Clause 40(5), provides:

“Whenever Charterers require the collected washings to be discharged ashore pursuant to this clause, Charterers shall provide and pay for the reception facilities, and the cost of any shifting therefore shall be for Tanker Charterers’ Account. Any time lost discharging the collected washings and/or shifting therefore shall count against Laytime or, if the ship is on Demurrage, for Demurrage.”

• Force Majeure events may also interrupt or hinder loading and discharging. These may include extraordinary events outside the control of the parties, such as natural disasters, warlike events, government restrictions, port closures, embargoes, epidemics, terminal shutdowns, extreme weather, or other unexpected events. Whether such events suspend Laytime or Demurrage depends entirely on the wording of the Force Majeure clause and whether the clause expressly applies to Laytime and time on Demurrage.

In Tanker Chartering, if cargo is loaded or discharged faster than the allowed Laytime, Shipowners normally do not pay Despatch Money (DM). This is one of the important differences between tanker and Dry Bulk Cargo Laytime practice. In dry bulk trades, Despatch is common and often calculated at half the Demurrage rate. In tanker trades, No Despatch is the usual position unless the Charter Party includes a specific Rider Clause providing otherwise.

If Laytime is exceeded, the Tanker Charterer must pay Demurrage to the Shipowner. Tanker Demurrage is usually structured in one of two ways:

• As a Daily Rate, which is the most common method. The rate is expressed in US Dollars per day, with pro rata calculation for part of a day. It is negotiated to reflect the expected daily earning value of the ship, market conditions, ship size, cargo type, and the commercial bargaining position of the parties.
• By reference to Worldscale (WS). Worldscale Preamble Part C contains a table of Demurrage rates for different tanker sizes. If the parties incorporate Worldscale demurrage, the applicable rate must be identified by reference to the relevant edition and the ship size. However, many modern tanker fixtures prefer a fixed daily US Dollar Demurrage rate because it gives both parties a clearer figure at the time of fixing.

For Tanker Laytime Calculations, the practical lesson is that standardization reduces some uncertainty but does not remove the need for careful drafting and evidence. The Shipbroker must examine the Tanker Charter Party, Worldscale terms, NOR provisions, running-time clause, weather clause, pumping clause, COW and residue clauses, documentation clauses, and any Rider Clauses. The final calculation should then be supported by the Notice of Readiness (NOR), Statement of Facts (SOF), terminal records, pumping logs, hose connection and disconnection times, pressure records, cargo documents, weather reports, and correspondence. Only by combining the standard tanker framework with the actual operational record can Shipowners and Charterers produce a reliable Laytime and Demurrage calculation.

Dry Bulk Cargo Laytime Calculations

Dry Bulk Cargo Laytime Calculations are usually more complex than Tanker Laytime Calculations. This is because dry bulk cargo operations are affected by a wider range of commercial, physical, operational, and documentary factors. Dry bulk ships trade worldwide, often to ports with different levels of infrastructure, different working customs, varying stevedoring standards, and diverse weather exposure. The nature of the cargo itself may also influence the calculation, as grain, coal, iron ore, fertilizers, cement, steel, timber, concentrates, and other dry bulk or breakbulk cargoes do not always load or discharge at the same speed or under the same conditions.

Another reason for this complexity is that loading and discharging may differ significantly in duration. A cargo may be loaded quickly by conveyor, chute, loader, or grab system at a modern export terminal, but discharged much more slowly at a smaller receiving port with limited shore equipment, restricted storage, or fewer Stevedore gangs. In other cases, the reverse may be true. The ship’s own cargo gear, the number and size of holds, hatch arrangements, trimming requirements, shore receiving capacity, weather sensitivity, and local labor practice all influence the final Laytime Calculation.

Laytime for Dry Bulk Cargo may begin immediately after a valid Notice of Readiness (NOR) is tendered, after the expiry of a specified Notice Time, or at a particular agreed time following the tender and acceptance of the Notice of Readiness (NOR). The exact starting point depends entirely on the Charter Party wording. Clauses dealing with Arrived Ship status, office hours, WIBON, WIPON, WIFPON, WCCON, Notice Time, SHEX, SHINC, and waiting for berth can all affect the commencement of Laytime.

In tanker trades, Laytime is often based on a relatively standardized allowance, commonly 72 hours for loading and discharging, subject to the applicable Tanker Charter Party and Worldscale terms. Dry Bulk Cargo Laytime, by contrast, may be expressed in several different ways. It may be Fixed Laytime, Calculable Laytime, or Indefinite Laytime. Fixed and Calculable Laytime generally provide more certainty because the parties can identify the time allowed by reference to a stated number of days, a fixed rate, or a formula. Indefinite Laytime is more uncertain because it depends on expressions such as Custom of Port (COP), Customary Quick Despatch (CQD), or Fast As Can (FAC), which require evidence of practice, capability, and reasonableness.

As already noted, Fixed Laytime is created by clear wording in the Charter Party. It may be stated as a number of days or hours, such as Running Days (RD), Working Days (WD), Weather Working Days (WWD), 24 Hours, or 24 Consecutive Hours. Charterers often propose Laytime terms based on their knowledge of the cargo, loading and discharging ports, terminal equipment, Stevedores, seasonal weather, and local working practices. Shipowners negotiate from the perspective of the ship’s characteristics, cargo capacity, hatch arrangement, gear, operating schedule, and expected next employment. The final Laytime clause therefore reflects both the practical needs of the cargo operation and the negotiating strength of Shipowners and Charterers.

Laytime may also be calculated by reference to the cargo-handling rate. This is common in dry bulk trades because cargoes are loaded and discharged at different speeds depending on the port and the cargo. Since daily cargo progress may not be identical throughout the operation, the Charter Party often uses the expression Average Rate Of to describe the agreed handling rate. This expression recognizes that operations may be faster on some days and slower on others, while the calculation is made by reference to the overall average performance.

For example, during bulk cargo discharge, cargo may be removed rapidly at the beginning when the upper layers of the cargo are easily accessible. Progress may then slow as Stevedores work the remaining cargo from the bottom, sides, wings, ends, or difficult parts of the holds. The wording “Average Rate Of” helps avoid arguments that the ship was delayed merely because one particular day’s performance was slower than another. What matters is whether the total operation meets the agreed average rate over the relevant calculation period.

Laytime Calculation may become more difficult where the allowance is linked to the number of Workable Hatches or Hatches. This method is less common than simple tonnage-per-day calculations but is still used in certain trades and regions. A cargo hatch is the deck opening through which cargo is loaded into, or discharged from, the cargo hold. The wording used in the Charter Party is important because “per hatch,” “per workable hatch,” and “per working hatch” can produce different results.

The expression Per Workable Hatch Per Day is generally more favorable to Charterers than to Shipowners. A hatch is normally considered Workable if there is cargo in the hold beneath it and that hatch is available for cargo operations. If the hold below the hatch is empty, unused, or not involved in the cargo operation, the hatch may not be counted as workable. In this context, Workability is connected with the cargo beneath the hatch, not with whether the ship has cranes, derricks, grabs, or other cargo-handling equipment above the hatch.

Alternatively, the Charter Party may use Per Hatch Per Day, which calculates Laytime by reference to the number of cargo hatches on the ship. Under this approach, a hatch may still be counted as a hatch even if the compartment below it is not being used for the particular cargo operation, unless the clause states otherwise. This can produce a shorter Laytime allowance than a workable hatch calculation and may therefore be more favorable to Shipowners.

The number and type of hatches influence the speed of cargo handling and therefore affect Laytime Calculation. However, hatch-based calculations can be imperfect because not all holds are worked at the same speed. Some holds may be larger, deeper, or more difficult to reach. Some may contain more cargo than others. A port may allocate different numbers of Stevedore Gangs to different hatches, and equipment availability may vary during the operation. Safety, stability, stress, trimming, and cargo-separation requirements may also dictate the loading or discharging sequence. For these reasons, hatch-based Laytime clauses should be drafted with particular care.

Laytime may also be Indefinite where the Charter Party uses expressions such as Per Custom of the Port, Customary Quick Despatch (CQD), or As Fast As Can (FAC). These expressions are commercially risky because they do not provide a fixed time allowance. Where a Fast As Can (FAC) clause is used, particularly for self-discharging bulk carriers, belt self-unloading ships, or ships with special handling systems, the Charterer should ensure that the shore side can receive cargo at a minimum speed sufficient to match the ship’s capability. Otherwise, the ship may be technically able to discharge quickly but practically delayed by shore bottlenecks, transport shortages, storage limitations, or terminal restrictions.

Dry bulk cargo Laytime is heavily affected by physical and non-physical interruptions. Physical factors include rain, snow, high wind, swell, extreme temperature, unsafe working conditions, or other Bad Weather that prevents cargo work. Non-physical interruptions include Sundays, Holidays, strikes, port closures, lack of cargo, lack of trucks or rail wagons, customs delays, labor shortages, and other events that may or may not be excepted under the Charter Party. The effect of each event depends on the exact clause wording.

Common examples of Excepted Periods in dry bulk cargo Laytime procedures include the following:

Malfunctions or inefficiencies on the ship’s side may interrupt Laytime where the ship’s equipment is required for cargo operations and then fails. For example, if the ship’s cranes, grabs, derricks, winches, hatch covers, lighting, power supply, or other cargo-related equipment break down, it is commercially logical that Laytime should stop during the period when cargo operations are prevented by the ship’s failure. The precise result depends on the Charter Party wording and whether the delay was caused by the ship, shore equipment, Stevedores, or another source.

Moving between Berths is another common issue. Time spent shifting from one berth to another is often treated as being for Shipowners’ account and therefore may not count as Laytime. However, this is not an absolute rule. The position may change where the Charter Party places shifting costs and time on Charterers, where shifting is required for cargo purposes, where multiple berths are nominated, or where a special clause provides that shifting time counts. The negotiated wording must therefore be checked carefully.

Weekends and Holidays frequently affect dry bulk Laytime. Under a SHEX (Sundays Holidays Excluded) clause, Sundays and Holidays do not count as Laytime. If cargo work is nevertheless performed during an excepted period, the time will not count unless the Charter Party includes wording such as “Unless Used (UU)” or “All Time Used to Count.” If the clause says “Even If Used,” then time worked during the excepted period may still remain excluded. These expressions can materially alter the final Laytime account, especially where cargo operations are performed over weekends or public holidays.

Strikes can have a significant effect on dry bulk Laytime. Strike clauses vary considerably. Some clauses directly state whether time lost by strike counts or does not count. Others are less precise and require careful interpretation. In general, strike clauses are difficult because a strike may affect cargo supply, Stevedores, port workers, truckers, rail operations, terminal staff, pilots, tug crews, or shore-side transport. The clause must be examined to determine whether it covers only a complete work stoppage or also lockouts, sympathy strikes, work-to-rule action, go-slows, refusal of overtime, or congestion caused after the strike ends.

GENCON 1994, Part II, Clause 16, General Strike Clause, provides an example of a structured approach. If a strike or lockout interferes with cargo loading, the Shipowner may have the right to cancel the Charter Party unless Charterers agree to reckon the LAYDAYS as if there had been no strike or lockout. If part of the cargo has already been loaded before the strike begins, Shipowners may be entitled to sail with the cargo already on board, earn Freight on that portion, and complete the voyage with other part-cargo. At the discharging port, where the strike is not resolved within 48 Hours of the ship’s arrival, Receivers may have an option either to divert the ship to another port or allow the ship to wait while paying Half Demurrage (HD) after Laytime has expired. This illustrates why strike wording must be read in detail rather than treated as a general exception.

Delays caused by the Fault of the Shipowner will normally not count against Charterers. The same principle applies where the delay is caused by subcontractors, servants, agents, or other parties for whom Shipowners are responsible. Examples may include defective ship’s gear, crew negligence, failure to open hatches, failure to provide safe access, lack of readiness, defective lighting, or the ship’s inability to perform cargo operations in the required manner. The Charter Party may also identify specific ship-side delays that are excluded from Laytime or Demurrage.

Bad Weather is one of the most important issues in dry bulk cargo operations. Rain may stop loading or discharging of grain, fertilizer, cement, steel, bagged cargo, sugar, salt, certain minerals, and many other dry cargoes. High wind may prevent crane operations. Heavy swell may make work unsafe. Snow, ice, lightning, or extreme temperatures may also interrupt cargo handling. Whether weather stops Laytime depends entirely on the Laytime wording, such as Weather Working Day (WWD), Weather Working Day of 24 Consecutive Hours, Weather Permitting, SHEX, SHINC, or other related expressions.

Force Majeure may also suspend Laytime if the Charter Party contains an express Force Majeure Clause covering the relevant event. Force Majeure generally refers to extraordinary circumstances beyond the control of the parties, such as natural disasters, warlike events, government restrictions, port closure, epidemic measures, civil unrest, or other events that prevent performance. For example, if Charterers cannot supply cargo at the loading port because of a Force Majeure event, the Charter Party may exclude the resulting delay from Laytime if the clause is drafted broadly enough. Without an express clause, such delay may not automatically interrupt Laytime.

Where cargo has been only partly loaded and a Laytime Exception occurs, the parties may face difficult practical choices. A clause that is fair in every possible situation is hard to draft. A common solution is to give the Shipowner a choice either to keep the ship waiting until loading is completed or to sail with the cargo already loaded and complete the remaining cargo program elsewhere or en route, if commercially and legally possible. The correct solution will depend on the cargo, Charter Party wording, safety, Freight entitlement, Deadfreight position, port conditions, and the availability of substitute cargo.

If loading or discharging exceeds the time allowed by the agreed Laytime, Charterers must compensate Shipowners for the time lost. This compensation may be payable as Demurrage (D) or, in some circumstances, as Damages For Detention (DFD). Demurrage is usually preferred because the daily rate is agreed in advance and avoids the need to prove actual loss. Damages For Detention may arise where no Demurrage rate is agreed, where delay falls outside the Demurrage regime, or where the Charter Party provides for a different remedy.

In dry bulk cargo operations, Demurrage (D) is commonly expressed as US Dollars Per Day or Pro Rata for any part of a day. Conversely, where loading or discharging is completed in less time than the allowed Laytime, Charterers may become entitled to Despatch Money (DM), also known as Dispatch. Despatch is often agreed at half the Demurrage rate. This is a common feature in dry cargo Charter Parties and is frequently included even where the printed form does not provide for it. GENCON 1994 does not include a standard Despatch provision in the same way some parties may expect, but in practice Despatch is often added through an Additional Clause or Rider Clause.

Dry Bulk Cargo Laytime Calculations therefore require careful attention to both law and port practice. The Shipbroker must examine the Charter Party, Notice of Readiness (NOR), Statement of Facts (SOF), Time Sheet (TS), weather reports, holiday calendars, strike notices, cargo records, berth movements, and correspondence between the parties. The final calculation should reflect not only the time actually used, but also the contractual effect of each delay, exception, interruption, and saved period. A reliable Laytime statement depends on accurate documents, precise clauses, and a clear understanding of the commercial operation carried out by the ship.

Multiple Charterers in One Specific Voyage

Laytime Calculation becomes more complicated when more than one Charterer is involved in the same voyage. This may occur where the Shipowner fixes the ship under separate Voyage Charter arrangements with several Charterers, each supplying a different part cargo. In this situation, the ship may be carrying cargoes under more than one contractual relationship, and each Charterer’s Laytime position must be assessed separately according to the relevant Charter Party terms, cargo quantity, loading or discharging sequence, and the time actually used for that Charterer’s cargo.

Where the Statement of Facts (SOF) is complete and accurately records the timing of each operation, the holds used, the cargo quantities handled, and the sequence of loading or discharging for each part cargo, the calculation may remain manageable. The Shipbroker can then identify which time belongs to each Charterer and prepare separate Laytime accounts. However, difficulties may arise where the same berth, Stevedore gangs, ship’s gear, shore equipment, or port time is used for several cargoes at the same time. In such circumstances, the allocation of waiting time, interruptions, shifting, weather delays, and idle periods may become controversial.

Particular disputes may arise where the ship waits for a Berth, where one Charterer’s cargo is ready but another Charterer’s cargo is not, or where delay occurs before it is clear which Charterer’s operation has caused the loss of time. The same issue may occur during discharge if one Receiver is ready to take delivery while another is not, or if port restrictions affect only one part cargo. Shipowners who intend to fix the same voyage with several Charterers should therefore address these matters during Chartering Negotiations. The Charter Parties should state how common waiting time is to be allocated, whether Laytime is to run separately or concurrently, whether each Charterer is liable only for its own cargo operation, and how shared delays are to be divided.

Clear drafting is especially important where different part cargoes are carried under different Laytime terms. One Charterer may be fixed on SHEX terms, another on SHINC terms, and another on a rate per workable hatch per day. If the Charter Parties are not coordinated, the Shipowner may face inconsistent Laytime results for the same port stay. For this reason, when multiple Charterers are involved, Shipowners should ensure that the Statement of Facts (SOF), Time Sheet (TS), stowage plan, loading plan, discharge records, hold allocation, and correspondence clearly identify which cargo and which Charterer each event relates to.

Importance of Reviewing All Charter Party Provisions

Laytime Calculation is not governed only by the printed Laytime Clause. Many other Charter Party provisions may affect when Laytime begins, when it stops, whether time is excluded, whether Demurrage runs, and whether Despatch is payable. For that reason, both during Chartering Negotiations and during the later Laytime Calculation, all Charter Party terms that may influence time counting must be examined carefully.

Clauses dealing with Notice of Readiness (NOR), Arrived Ship status, Safe Port (SP), Safe Berth (SB), reachable on arrival, always accessible, waiting for berth, WIBON, WIPON, WIFPON, WCCON, Laycan, exceptions, strikes, weather, shifting, force majeure, cargo readiness, berth nomination, loading and discharging responsibility, Demurrage, Despatch, commission, lien, and payment may all affect the final account. A clause outside the Laytime section may still determine whether a period counts or does not count. The calculation should therefore be based on the entire Charter Party, including rider clauses, recap wording, typed additions, and any amendments agreed during negotiations.

Comparing “Laytime Definitions 2013” with “VOYLAYRULES 1993”

The main differences between Laytime Definitions 2013 and VOYLAYRULES 1993 were explained in BIMCO’s special circular issued in September 2013. The changes were not merely editorial. They reflected an attempt to make Laytime terminology clearer, more practical, and more consistent with modern chartering practice and English law. The principal points may be summarized as follows:

• Laytime Definitions 2013 returned to the original 1980-style format by presenting the material as definitions rather than as a self-contained code. This marked a change from VOYLAYRULES 1993, which had been drafted more like an independent set of rules and included certain departures from widely accepted commercial practice, including its treatment of Weather Working Day expressions.
• The supporting organizations, BIMCO, FONASBA, CMI, and the Baltic Exchange, accepted that the format of VOYLAYRULES had limited its wider adoption. A revised definitions-based approach was therefore preferred because it could be more easily incorporated into Charter Parties and better aligned with current commercial needs.
• Many VOYLAYRULES provisions were revised, both editorially and substantively, in order to improve clarity and remove wording that had caused uncertainty in practice.
• Separate explanations were again provided for the different meanings and uses of Weather Working Day (WWD). This was important because weather-related wording can produce very different results depending on whether interruptions are assessed during working hours, outside working hours, while the ship is alongside, or while the ship is waiting for berth.
• New definitions were introduced, including Always Accessible (AA) and Whether in Port or Not (WIPON). These additions reflected modern disputes and commercial practice concerning berth availability, waiting places, port congestion, and the point at which Notice of Readiness (NOR) may be validly tendered.
• The term Strike, which appeared in VOYLAYRULES 1993, was removed from Laytime Definitions 2013. This was because strike clauses are usually dealt with separately in Charter Parties, and their effect can vary significantly depending on whether the wording covers strikes, lockouts, labor disputes, refusal of overtime, work-to-rule action, sympathy strikes, after-effects, or shore-side transport disruption.
• The phrase “In Writing” was also omitted from the 2013 definitions. Many modern Charter Party Forms, especially BIMCO forms, already include separate communication and notice provisions dealing with written notices, electronic communications, and accepted methods of transmission.
• The use of abbreviations was substantially reduced because many abbreviations do not have a universally accepted meaning. Although commercial parties may use familiar acronyms in negotiations, abbreviations can easily be misunderstood if they are not clearly defined. Laytime Definitions 2013 retained abbreviations only for Whether in Berth or Not (WIBON) and Whether in Port or Not (WIPON), because these expressions are widely recognized in the industry.

The practical importance of this comparison is that parties should not assume that a familiar Laytime expression has only one possible meaning. Older Charter Party wording, VOYLAYRULES 1993 terminology, Laytime Definitions 2013 wording, and local trade practice may not always produce the same result. When drafting or reviewing a Charter Party, Shipowners, Charterers, and Shipbrokers should identify exactly which definitions apply and should avoid combining different sets of terminology without clear coordination. A well-drafted Laytime Clause should state the applicable definitions, preserve the intended commercial allocation of risk, and reduce the scope for later disputes over Demurrage, Despatch, waiting time, weather interruptions, or berth congestion.