Notice of Readiness (NOR)

Notice of Readiness (NOR)

Notice of Readiness (NOR) is normally tendered by the shipmaster (by radio or in writing) to the charterer or charterer’s agent and indicates that the ship is ready to load or discharge cargo.

Notice of Readiness (NOR) is tendered when the ship is still at anchorage or where ships usually lie ready to perform cargo operations. In order for the Notice of Readiness (NOR) to be valid, the ship must be ready and physically capable of performing cargo operations. In other words, ship’s holds must be clean and ready to receive cargo. Time lost in cleaning holds is almost always excluded from laytime.

Notice of Readiness (NOR) can be given even though there may be “some further preliminaries to be done or routine matters to be carried on or formalities observed. If those things are not such as to suppose that they will cause delay and if it is apparent that the ship will be ready when the appropriate time arrives, then notice of readiness may be given” (per Lord Denning M. R. in the Tres Flores 1978).

In order for a notice of readiness to be valid, the ship must be ready at the time that the notice is given, not at a time in the future. For a Notice of Readiness (NOR) to be binding it must be accepted by the charterers. In case it is not accepted, shipowner should continue tendering Notice of Readiness (NOR) to safeguard against a later potential dispute.

Charterparties provide protection to shipowners in case of delays that may occur for various reasons. Shipowners agree to certain terms to provide them with such protection. For instance, lay time will commence:

  • whether in berth or not (WIBON)
  • whether customs cleared or not (WICCON)
  • whether in free pratique or not (WIFPON)

Clauses indicate that lay time commences irrespective of whether:

  • ship has clearance from local customs
  • ship has been cleared by port/state health authorities (in free pratique)
  • there is a berth available that the ship can sail to

In case a berth for the ship is occupied upon the ship’s arrival, in a port charterparty, charterparty may specify that Notice of Readiness (NOR) can be tendered from a “normal waiting place“. Normal waiting place includes the anchorage where ships normally lie waiting for a berth, as per the local port custom. Shifting from a waiting place to the first cargo berth does not count as laytime.

If a Notice of Readiness (NOR) is given prematurely, then this does not amount to a breach of contract. As stated by Moore-Bick J. in The Nikmary (2003): “To give notice of readiness prematurely is not a breach of charter; it is simply ineffective to start time running. Once the ship had been properly cleaned a valid notice of readiness could be given and was given. Only then did the charterers’ obligation to load within the laydays arise.”

If the Notice of Readiness (NOR) becomes invalid, either due to the charterer’s breach of contract or without fault from either side, then laytime will not begin and the shipowner will not be entitled to demurrages. Instead, damages for detention will be payable to the owners.

This distinction is connected to clause 6 of the ASBATANKVOY form and the “reachable on arrival” provision: Upon arrival at customary anchorage at each port of loading or discharge, the Master or his agent shall give the charterer or his agent notice by letter, telegraph, wireless or telephone that the ship is ready to load or discharge cargo, berth or not berth and laytime as hereinafter provided, shall commence upon the expiration of 6 hours after receipt of such notice or upon the ship’s arrival in berth (i.e. finished mooring when at a sea loading or discharging terminal and all fast when loading or discharging alongside a wharf), whichever occurs first. However, where delay is caused to a ship getting into berth after giving NOR for any reason which charterer has no control, such delay shall not count as used laytime.

Lord Roskill in The Laura Prima (1981) indicated that the berth is required to have two characteristics: Berth must be safe and it must be reachable on arrival.

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What is NOR (Notice of Readiness)?

The third requirement for the commencement of laytime is the tender of a valid Notice of Readiness (NOR). This is a statement made by the ship to the charterers or their agents announcing that she has arrived at the agreed destination and is ready to load/discharge the cargo.

Under Common Law:

a. Notice of Readiness (NOR) is required at the first load port only.
b. It may be in either written or oral form.
c. It can be given to the charterers, their agents or anyone else the charterers may nominate.
d. It is not necessary for the charterers to know the true facts of the ship’s position and status.
e. It can be given at any time unless unlawful.
f. It must be a true statement at the time it is given, otherwise it is invalid.

It is the last point that gives rise to many disputes. If a Notice of Readiness (NOR) is given which is invalid and is not true, either because the ship has not arrived at the agreed destination, or is not ready to load/discharge the cargo, then the laytime will not commence at all unless:

a. A fresh, valid Notice of Readiness (NOR) is given.
b. There has been a waiver by the charterers of their requirement to receive a valid Notice of Readiness (NOR)

this was established in the Happy Day (2002) 2 LLR 487 c. There is an express provision in the charterparty triggering the commencement of laytime without a valid Notice of Readiness (NOR) having been given. If an invalid Notice of Readiness (NOR) is given, a new NOR must be given when the ship is in fact ready.

The original Notice of Readiness (NOR) does not become valid when the untrue statement becomes true. This principle was established in the Mexico 1 (1990) 1 LLR 507 when the Court of Appeal determined that a NOR does not ‘float, inchoate’ until the facts make it a good Notice of Readiness (NOR). An invalid Notice of Readiness (NOR) cannot become automatically valid when the underlying facts change.

In the Mexico 1, the Notice of Readiness (NOR) was tendered on arrival at the discharge port but the cargo was over-stowed by another cargo and as such it was decided that the NOR was invalid. A later NOR was never given and laytime commenced when discharge of the cargo commenced some four weeks later even though the cargo was accessible after two weeks.

Aship must reach her destination to be an arrived ship. A Notice of Readiness (NOR) tendered before the ship has arrived will be invalid and this was the position in the Agamemnon (1998) 1 LLR 67. The ship tendered Notice of Readiness (NOR) at the mouth of the river, later proceeded up the river and arrived at Baton Rouge anchorage. A new Notice of Readiness (NOR) was not tendered and the court held the NOR tendered at the mouth of the river was invalid. The charterers conceded that laytime would start on commencement of cargo operations. Without these concessions, and absent any other trigger in the charterparty starting laytime independent of a valid Notice of Readiness (NOR), then laytime will not start at all unless charterers waive the invalidity of the Notice of Readiness (NOR) or are estopped from arguing it.

Dealing with the waiver by charterers of their requirement to receive a valid Notice of Readiness (NOR) we must turn to the landmark case of the Happy Day (2002) 2 LLR 487. Prior to this case it was decided that an invalid Notice of Readiness (NOR) never becomes valid and, absent any specific provision in the charterparty, the laytime clock cannot start. The Happy Day judgement changed this. The Happy Day was fixed on the Synacomex form, a berth charterparty. The owner tendered a premature Notice of Readiness (NOR) before the ship arrived at berth. The charterer did not reject the Notice of Readiness (NOR) , even though it was invalid as it had been tendered prior to arrival at berth. The ship then berthed and discharge commenced on the charterers’ instructions and took approximately 3 months, far longer than expected.

Initially the High Court decided that the Notice of Readiness (NOR) was invalid and laytime never started – in fact the High Court directed the owner to pay despatch as cargo operations had been completed within the agreed laytime. The owner appealed and the Court of Appeal agreed that the Notice of Readiness (NOR) was invalid. However, the court stated that although the charterers were not under a contractual duty to reject the NOR, by failing to do so, and by agreeing to commencement of discharge, they had effectively waived any reliance on the invalidity of the Notice of Readiness (NOR) and waived any requirement for a further Notice of Readiness (NOR).

As a result the court decided that the laytime in this case would start upon commencement of cargo operations, and directed the charterers to pay demurrage. In reaching this decision the tests the court set were:

a. that after the invalid Notice of Readiness (NOR) was given the ship becomes able to give a valid Notice of Readiness (NOR) (but does not do so);
b. the charterers become aware of the fact (either directly or through their agents);
c. the charterers do not reject the invalid Notice of Readiness (NOR) or reserve their rights in respect of it; and cargo operations then commence at the request of the charterer/receiver/shipper.

If all these tests are met, laytime will start on the commencement of cargo operations. As we said above, the basic effect of the Happy Day case is that laytime starts at commencement of operations following an invalid Notice of Readiness (NOR) when charterers do not reject the Notice of Readiness (NOR) or reserve their rights.

The rationale is that the Notice of Readiness (NOR) is deemed to become valid at that time, i.e. commencement of operations, so that the claiming party can recover demurrage. However, in the case of the Northgate (2008) 1 LLR 511, the facts were slightly different. Notice of Readiness (NOR) was tendered at the outer anchorage at Guida Island. It was invalid because the relevant clause in the charter said that Notice of Readiness (NOR) could only be tendered at the outer anchorage if there was no space at the inner anchorage. In fact, there was space at the inner anchorage so the Notice of Readiness (NOR) was invalid.

The Notice of Readiness (NOR) had been tendered to the terminal (permitted under the charter) and accepted by them. More importantly, it had also been confirmed by the charterers’ agents. The Court said that the terminal’s acceptance and agents’ confirmation was enough to waive the invalid Notice of Readiness (NOR) with the effect that time started running from when it was tendered. This meant the owner’s demurrage claim succeeded in full.

This appears to go further than the Happy Day case because time started at the time of the invalid Notice of Readiness (NOR) and not (as in the Happy Day) at the much later commencement of operations. The difference in the Northgate is that the terminal accepted the Notice of Readiness (NOR) and the agents confirmed it, whereas in the Happy Day nothing at all was said by anyone. However, it is not clear from the judgement in the Northgate whether the same result would have been reached if the charterers’ agents had not confirmed the terminal’s acceptance. On top of this common law position, many charterparties have other express requirements as far as NOR is concerned and if owners have agreed to these additional requirements any Notice of Readiness (NOR) tendered must comply with these additional requirements overriding any common law obligations.

Such additional requirements stipulate NORs to be:

a. given in writing;
b. tendered at each loading and discharging port;
c. tendered to specific, identified people; and
d. tendered within specific hours, for example, office hours.

A distinction must be drawn between the situation where a Notice of Readiness (NOR) is not valid since it is stating a position which is not true, and where the Notice of Readiness (NOR) is stating the truth but is tendered at the wrong time.

In the Petr Schmidt (CA) (1998) 2 LLR 1 the laytime provisions in the charterparty provided that Notice of Readiness, at loading and discharging port, is to be tendered within 06.00 and 17.00 hours local time. The ship tendered Notice of Readiness (NOR) at 00.01 when she was both an arrived ship and ready but it was not tendered between the hours specified in the charterparty. The court decided that the ship was ready when the NOR was given and so long as she remained ready at 0600 hours (when the charterers received it) it should be treated as valid at that time.

The principle outlined in the Petr Schmidt would apply to a Notice of Readiness (NOR) tendered before the agreed laycan period although it must be pointed out that many charterparties now, particularly in the oil trade, stipulate that Notice of Readiness (NOR) cannot be given prior to the first day of the laycan. As we have seen, an invalid NOR never becomes valid and the ship must give a new and valid NOR at the point she has arrived and is ready. Whilst the Happy Day case has effectively given owners a backstop position if it is found that the NOR is invalid, owners may wish to consider other actions to protect their position as proving a waiver may still be uncertain and expensive.

For example:

a. The owner can tender a second (or more) Notice of Readiness (NOR). If there is any doubt about the validity of the first NOR, there is nothing to stop a master serving subsequent, multiple NORs ‘without prejudice’ to any earlier NORs so as to limit the risk of one of the NORs being found to be invalid.

b. Additional clauses: owners may also include a clause in the charterparty providing for laytime to start on the commencement of loading or some other trigger independent of the Notice of Readiness (NOR).

Clauses like this are often found in tanker charterparties where time will start, for example, ‘ … at NOR plus six hours or commencement of cargo operations whichever first occurs … ‘. This will add certainty and avoid owners having to prove a waiver. Watch out for clauses which state that laytime starts when the NOR is received or accepted. The precise wording is important and often a NOR may be accepted some time after the time it was tendered.

Normally any Notice of Readiness (NOR) is tendered first to the agent who then passes it on to the shipper or charterer. Some clauses are more specific and must be followed. Compare Clause 6 of Asbatankvoy which provides that the master can give NOR to ‘the charterer or his agent’ with Clause 6 of ASBA II which provides that NOR shall be given to ‘the charterer’.

If Notice of Readiness (NOR) is given to the charterer’s agent but he does not pass it on to the charterer there is a risk that laytime will not start. Similarly, if NOR is given to the shipper or the receiver, but not the charterer, laytime may not start.

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What is a Notice of Readiness (NOR) in shipping?

A Notice of Readiness (NOR) is a formal written communication used in the shipping industry to indicate that a ship is ready to load or discharge cargo at a specific port or terminal. It is typically provided by the ship’s master or an authorized agent to the charterer, shipper, or receiver of the cargo. The Notice of Readiness (NOR) serves as a critical time-stamp in the shipping process, as it helps establish the commencement of laytime, which is the period during which the ship is available for loading or unloading operations.

The Notice of Readiness typically includes the following information:

  1. Name and identification details of the ship
  2. Name of the port or terminal
  3. Date and time when the ship is ready to commence cargo operations
  4. Any conditions or limitations that may affect the loading or unloading process

Once the Notice of Readiness (NOR) is tendered and accepted, laytime begins, and the charterer or cargo interests are expected to load or discharge cargo within the agreed laytime specified in the charter party or contract of affreightment. If the cargo operations are not completed within the agreed laytime, the ship owner may be entitled to claim demurrage, which is a compensation for the additional time spent at the port. Conversely, if cargo operations are completed before the laytime expires, the charterer may be entitled to despatch, which is a rebate on the freight cost.

When is Notice of Readiness (NOR) issued?

A Notice of Readiness (NOR) is issued when a ship has arrived at the designated port or terminal and is prepared to begin cargo operations. The specific conditions for tendering a valid Notice of Readiness (NOR) may vary depending on the charter party agreement or contract of affreightment, but generally, the Notice of Readiness (NOR) can be issued when the following conditions are met:

  1. Arrival at the designated area: The ship must have arrived at the specified port, berth, or anchorage area, as stipulated in the charter party or contract. In some cases, a Notice of Readiness may be issued when the ship is within the port limits or has reached a customary anchorage.
  2. Compliance with regulations: The ship must comply with all applicable regulations, including customs, immigration, and other port formalities. Any necessary inspections or certifications should also be completed before issuing the Notice of Readiness (NOR).
  3. Readiness for cargo operations: The ship must be in a suitable condition for cargo operations, with all necessary equipment and personnel available for the loading or unloading process. This may include ensuring that the cargo holds are clean and fit for the intended cargo, and that the necessary equipment for handling the cargo is operational.
  4. Free pratique: In some cases, a ship may need to obtain “free pratique” before tendering the Notice of Readiness (NOR). Free pratique is a clearance granted by local health authorities, confirming that the ship is free from any contagious diseases or infections.

Once these conditions are met, the ship’s master or an authorized agent will issue the Notice of Readiness to the charterer, shipper, or receiver of the cargo. The Notice of Readiness (NOR) serves as a formal declaration that the ship is ready to begin cargo operations, and it establishes the commencement of laytime, which is the period allocated for loading or unloading the cargo.

 

Notice of Readiness (NOR) Example 1

Below is an example of a Notice of Readiness (NOR) that a ship’s master or an authorized agent might submit to the charterer, shipper, or receiver of the cargo. Please note that the format and specific details may vary depending on the particular contract, charter party agreement, and port requirements.

[Date]

To: [Charterer / Shipper / Receiver] [Company Name] [Address] [City, Country]

Subject: Notice of Readiness for Ship [Ship Name]

Dear [Contact Person],

We hereby tender Notice of Readiness for the ship [Ship Name] (IMO Number: [IMO Number]) in accordance with the terms and conditions of the Charter Party / Contract of Affreightment dated [Date of Charter Party / Contract].

Ship details:

  • Ship Name: [Ship Name]
  • IMO Number: [IMO Number]
  • Flag: [Flag]
  • Gross Tonnage: [Gross Tonnage]
  • Deadweight Tonnage: [Deadweight Tonnage]

Port / Terminal Information:

  • Port Name: [Port Name]
  • Terminal / Berth: [Terminal / Berth]
  • Coordinates: [Latitude], [Longitude]

Date and Time of Readiness:

  • Date: [Date]
  • Time: [Time, in local time or GMT/UTC as per agreement]

The ship has arrived at the designated area, has complied with all necessary regulations, and is ready to commence cargo operations for loading / discharging [Cargo Type] as per the Charter Party / Contract of Affreightment. All required documentation, inspections, and certifications have been completed, and the ship’s cargo holds and equipment are in a suitable condition for cargo operations.

We kindly request that you acknowledge receipt of this Notice of Readiness and confirm the commencement of laytime accordingly.

Yours faithfully,

[Master’s / Agent’s Name] [Title / Position] [Contact Information: Email / Phone Number]

 

It is essential to ensure that the information provided in the Notice of Readiness is accurate and complete, as this document plays a crucial role in determining the commencement of laytime and any potential demurrage or despatch claims.

 

Notice of Readiness (NOR) Example 2

Here’s an example of a Notice of Readiness (NOR):

[Shipowner’s/Agent’s Letterhead]

Date: [Date of issuance]

To: [Charterer’s Name and Address] Attention: [Charterer’s Agent or Relevant Person]

Subject: Notice of Readiness (NOR)

Ship Name: [Ship’s Name] IMO Number: [Ship’s IMO Number] Port of Registry: [Port of Registry] Gross Tonnage: [Gross Tonnage] Net Tonnage: [Net Tonnage] Deadweight: [Deadweight Tonnage]

Dear Sir/Madam,

We, the undersigned, as Master/Agent of the ship [Ship’s Name], hereby provide this Notice of Readiness in accordance with the terms and conditions of the Charter Party dated [Charter Party Date] between [Shipowner’s Name] and [Charterer’s Name].

We confirm that the ship has arrived at the designated [loading/discharging] port of [Port Name] on [Date and Time of Arrival] and is safely anchored/moored at [Location within Port or Berth Number].

The ship is ready in all respects to [load/discharge] the cargo as per the terms of the Charter Party agreement. All necessary clearances, including free pratique and customs clearance, have been obtained. The cargo holds have been prepared, and the ship is in a seaworthy condition to receive the cargo.

Please be advised that, in accordance with the Charter Party agreement, laytime will commence [specify the number of hours, e.g., six hours] after the acceptance of this Notice of Readiness, unless otherwise agreed.

We kindly request that you acknowledge receipt and acceptance of this Notice of Readiness by signing and returning a copy of this letter.

Yours faithfully,

[Master’s/Agent’s Name] [Master’s/Agent’s Signature]

For and on behalf of [Shipowner’s Name]

Acknowledged and accepted:

[Charterer’s/Agent’s Name] [Charterer’s/Agent’s Signature] Date: [Date of acceptance]

Please note that this is just an example, and the actual format and content of a NOR may vary depending on the terms of the charter party agreement and any specific requirements of the involved parties.

 

 

Who is the Notice of Readiness (NOR) given to?

The Notice of Readiness (NOR) is typically given to the charterer, shipper, or receiver of the cargo, depending on the specific terms and conditions outlined in the charter party agreement or contract of affreightment. These parties are responsible for organizing and carrying out the cargo loading or unloading operations within the agreed laytime.

In some cases, the Notice of Readiness (NOR) may also be provided to the port or terminal authorities, as well as other parties involved in the cargo handling process, such as stevedores, agents, or freight forwarders. The primary purpose of tendering the Notice of Readiness (NOR) is to formally communicate the ship’s readiness to commence cargo operations and establish the start of laytime, which is the allocated period for completing the loading or unloading process.

 

Is your Notice of Readiness (NOR) Valid?

To determine whether a Notice of Readiness (NOR) is valid, it must satisfy certain criteria, which are typically specified in the charter party agreement or contract of affreightment. The specific requirements may vary depending on the individual contract, but generally, a NOR is considered valid if it meets the following conditions:

  1. Compliance with charter party terms: The Notice of Readiness (NOR) must adhere to the provisions outlined in the charter party or contract, including any stipulated format, method of communication, or content requirements.
  2. Proper recipient: The Notice of Readiness (NOR) must be tendered to the appropriate party or parties, as defined in the charter party or contract. This is typically the charterer, shipper, or receiver of the cargo, but it may also include other parties involved in the cargo handling process, such as port authorities or agents.
  3. Arrival at designated location: The ship must have arrived at the specified port, berth, or anchorage area, as stipulated in the charter party or contract. In some cases, a Notice of Readiness (NOR) may be issued when the ship is within the port limits or has reached a customary anchorage.
  4. Ship readiness: The ship must be in a suitable condition for cargo operations, with all necessary equipment and personnel available for the loading or unloading process. This may include ensuring that the cargo holds are clean and fit for the intended cargo, and that the necessary equipment for handling the cargo is operational.
  5. Compliance with regulations: The ship must comply with all applicable regulations, including customs, immigration, and other port formalities. Any necessary inspections or certifications should also be completed before issuing the Notice of Readiness (NOR).
  6. Free pratique (if required): In some cases, a ship may need to obtain “free pratique” before tendering the Notice of Readiness (NOR). Free pratique is a clearance granted by local health authorities, confirming that the ship is free from any contagious diseases or infections.
  7. Date and time: The Notice of Readiness (NOR) must be tendered within the allowable time window specified in the charter party or contract. This may include working hours, weekends, or holidays, depending on the agreement.

If the Notice of Readiness (NOR) meets these criteria, it is generally considered valid. However, it is essential to carefully review the specific terms and conditions of the charter party agreement or contract of affreightment, as the validity of a Notice of Readiness (NOR) may be subject to additional requirements or conditions.

 

Notice of Readiness (NOR) and the Commencement of Laytime

The Notice of Readiness (NOR) and the commencement of laytime are closely related concepts in the shipping industry, as the Notice of Readiness (NOR) serves as a formal declaration that the ship is prepared to begin cargo operations, and it establishes the start of laytime, which is the allocated period for completing the loading or unloading process.

The Notice of Readiness (NOR) is typically tendered by the ship’s master or an authorized agent to the charterer, shipper, or receiver of the cargo, once the ship has arrived at the designated port or terminal and is ready for cargo operations. The Notice of Readiness (NOR) must meet specific criteria, as outlined in the charter party agreement or contract of affreightment, in order to be considered valid.

Once a valid Notice of Readiness (NOR) is tendered and accepted by the appropriate parties, the commencement of laytime begins. Laytime is a critical aspect of the shipping process, as it defines the time frame within which the charterer or cargo interests are expected to load or discharge the cargo. The duration of laytime is usually specified in the charter party or contract and may be expressed in hours or days.

If the cargo operations are not completed within the agreed laytime, the ship owner may be entitled to claim demurrage, which is a compensation for the additional time spent at the port. Conversely, if cargo operations are completed before the laytime expires, the charterer may be entitled to despatch, which is a rebate on the freight cost.

The relationship between the Notice of Readiness and the commencement of laytime highlights the importance of clear communication and adherence to contractual terms in the shipping industry. Ensuring that a valid Notice of Readiness (NOR) is tendered and accepted in a timely manner helps to minimize disputes and facilitate efficient cargo operations.

What are the requirements for Notice of Readiness (NOR)?

 

The requirements for a Notice of Readiness (NOR) may vary depending on the specific terms and conditions outlined in the charter party agreement or contract of affreightment. However, there are general requirements that must typically be met for a Notice of Readiness (NOR) to be considered valid:

  1. Compliance with charter party terms: The Notice of Readiness (NOR)must adhere to the provisions outlined in the charter party or contract, including any stipulated format, method of communication, or content requirements. It should contain all necessary information, such as the ship’s name, the name of the port or terminal, and the date and time when the ship is ready to commence cargo operations.
  2. Proper recipient: The Notice of Readiness (NOR) must be tendered to the appropriate party or parties, as defined in the charter party or contract. This is typically the charterer, shipper, or receiver of the cargo, but it may also include other parties involved in the cargo handling process, such as port authorities or agents.
  3. Arrival at designated location: The ship must have arrived at the specified port, berth, or anchorage area, as stipulated in the charter party or contract. In some cases, a Notice of Readiness (NOR) may be issued when the ship is within the port limits or has reached a customary anchorage.
  4. Ship readiness: The ship must be in a suitable condition for cargo operations, with all necessary equipment and personnel available for the loading or unloading process. This may include ensuring that the cargo holds are clean and fit for the intended cargo, and that the necessary equipment for handling the cargo is operational.
  5. Compliance with regulations: The ship must comply with all applicable regulations, including customs, immigration, and other port formalities. Any necessary inspections or certifications should also be completed before issuing the Notice of Readiness (NOR).
  6. Free pratique (if required): In some cases, a ship may need to obtain “free pratique” before tendering the Notice of Readiness (NOR). Free pratique is a clearance granted by local health authorities, confirming that the ship is free from any contagious diseases or infections.
  7. Date and time: The Notice of Readiness (NOR) must be tendered within the allowable time window specified in the charter party or contract. This may include working hours, weekends, or holidays, depending on the agreement.

It is essential to carefully review the specific terms and conditions of the charter party agreement or contract of affreightment, as the validity of a Notice of Readiness (NOR) may be subject to additional requirements or conditions. Meeting these requirements helps to ensure that the Notice of Readiness (NOR) is valid and that the commencement of laytime can proceed smoothly, minimizing disputes and facilitating efficient cargo operations.

 

Specifying Notice of Readiness (NOR) in a Charter Party 

When specifying the Notice of Readiness (NOR) in a charter party agreement, it is crucial to clearly define the terms and conditions associated with the tendering, acceptance, and effect of the Notice of Readiness (NOR) on laytime. This helps to minimize potential disputes and ensure a smooth cargo operation. Here are some key aspects to consider when including Notice of Readiness (NOR) provisions in a charter party agreement:

  1. Definition and purpose: Clearly define the Notice of Readiness and its purpose, which is to inform the charterer or other relevant parties that the ship has arrived at the designated location and is ready to commence cargo operations.
  2. Tendering: Specify the requirements for tendering a valid Notice of Readiness (NOR) , such as: a. The ship’s arrival at the designated port, berth, or anchorage area. b. Compliance with all applicable regulations and formalities. c. Ship readiness for cargo operations, including necessary equipment and personnel. d. Obtaining free pratique, if required.
  3. Format and content: Provide guidelines on the format and content of the Notice of Readiness (NOR), including essential information such as the ship’s name, the name of the port or terminal, and the date and time when the ship is ready to commence cargo operations.
  4. Method of communication: Specify the preferred method for tendering the Notice of Readiness (NOR), such as email, fax, or a physical document delivered by the ship’s agent. It is also helpful to include any necessary contact information for the relevant parties.
  5. Recipients: Clearly define the parties to whom the Notice of Readiness (NOR) should be tendered, such as the charterer, shipper, receiver, port authorities, or agents.
  6. Timing: Specify the acceptable time window for tendering the Notice of Readiness (NOR), including any limitations related to working hours, weekends, or holidays. Also, outline the conditions under which the NOR may be re-tendered, if necessary.
  7. Commencement of laytime: Clearly state when laytime begins in relation to the tendering and acceptance of the NOR. This may include provisions for waiting time, notice time, or other delays affecting the commencement of laytime.
  8. Suspension or interruption of laytime: Include provisions for any circumstances that may cause the suspension or interruption of laytime after the NOR has been tendered and accepted, such as bad weather, strikes, or other unforeseen events.

By carefully addressing these aspects in the charter party agreement, both the shipowner and charterer can establish a clear understanding of their respective obligations and responsibilities related to the Notice of Readiness, ultimately promoting efficient cargo operations and minimizing disputes.

 

How a Notice of Readiness (NOR) becomes invalid?

A Notice of Readiness (NOR) can become invalid if it fails to meet certain criteria or conditions specified in the charter party agreement or contract of affreightment. The specific requirements may vary depending on the individual contract, but generally, a Notice of Readiness (NOR)may be considered invalid under the following circumstances:

  1. Non-compliance with charter party terms: If the Notice of Readiness (NOR) does not adhere to the provisions outlined in the charter party or contract, including format, method of communication, or content requirements, it may be deemed invalid.
  2. Incorrect recipient: If the Notice of Readiness (NOR) is not tendered to the appropriate party or parties, as defined in the charter party or contract (typically the charterer, shipper, or receiver of the cargo), the NOR may be considered invalid.
  3. Premature arrival: If the Notice of Readiness (NOR) is tendered before the ship has arrived at the specified port, berth, or anchorage area, as stipulated in the charter party or contract, it may be deemed invalid.
  4. Ship unreadiness: If the ship is not in a suitable condition for cargo operations, or if the necessary equipment and personnel are not available for the loading or unloading process, the Notice of Readiness (NOR) may be considered invalid.
  5. Non-compliance with regulations: If the ship has not complied with all applicable regulations, including customs, immigration, and other port formalities, or if necessary inspections or certifications have not been completed, the Notice of Readiness (NOR) may be deemed invalid.
  6. Free pratique not obtained (if required): If a ship is required to obtain “free pratique” before tendering the Notice of Readiness (NOR) and fails to do so, the Notice of Readiness (NOR) may be considered invalid. Free pratique is a clearance granted by local health authorities, confirming that the ship is free from contagious diseases or infections.
  7. Incorrect date and time: If the Notice of Readiness (NOR)is tendered outside the allowable time window specified in the charter party or contract, such as outside working hours, weekends, or holidays, it may be deemed invalid.

It is essential for the ship’s master or authorized agent to ensure that the Notice of Readiness (NOR) meets all necessary criteria and conditions to avoid invalidation. An invalid NOR may result in delays, additional costs, and potential disputes between the involved parties. If an NOR is found to be invalid, it may need to be re-tendered, addressing the issues that led to its invalidation, in order to establish a valid NOR and commence laytime.

 

Invalid Notice of Readiness (NOR) and Arbitration Example

In an arbitration case in London, a shipowner was awarded $2.8 million, despite an invalid Notice of Readiness (NOR) being tendered for a bulker which was later grounded by a hurricane in the US. The ship had been chartered to transport soya beans and meal from a Mississippi river terminal in August. On 24 August, the ship tendered the Notice of Readiness (NOR) from outside the port, but the cleanliness of the holds was rejected by a National Cargo Bureau (NCB) surveyor. The ship was subsequently driven aground by a hurricane on 30 August but was refloated without damage. On 4 September, the charterer alleged that the ship was still not ready, even if a valid Notice of Readiness (NOR) had been tendered on 24 August. The charterer also claimed that the laycan had expired and that all cargo destined for loading had been water-damaged by the hurricane, constituting force majeure under clause 36 of the charter agreement. The dispute escalated when the disponent owner emailed a further copy of the original Notice of Readiness (NOR) on 4 October, and the charterer sought to cancel the deal. The owner argued that this was a repudiatory breach, and redelivered the ship to its registered owner, forfeiting $217,134 for bunkers remaining on board. The owner claimed $372,746 in demurrage and $316,831 in loss of profit on the voyage. The charterer counter-claimed $1,797,182 in loss of profit and $84,500 for barge demurrage, alleging that the owner had failed to present the ship with clean holds. The tribunal found that the 24 August Notice of Readiness (NOR) was invalid and premature since a berth or anchorage had been available inside the port, and also because of the unclean holds. It said that the ship should have re-tendered once the NCB had passed the holds, but it did not. Nevertheless, the charterer was found liable for demurrage and damages. Clause 36 did not apply as it lacked the clear wording needed to make it also exclude demurrage. The owner was awarded $354,109 in demurrage and $59,190 in damages. This case highlights the importance of suitable re-tender in cases concerning valid tender of Notice of Readiness (NOR), and the unfamiliar waters of waiver, estoppel, and acceptance by conduct.

 

What happens if ship arrives before Laycan?

If a ship arrives before the laycan (Laydays-Cancelling) period, the ship is considered to have arrived early. Laycan is a contractual agreement between the shipowner and the charterer that defines a specific time range within which the ship is expected to arrive at the loading port.

When a ship arrives early, there are several possible outcomes:

  1. Berth availability: If the berth is available and the charterer is ready to load or discharge cargo, the parties may mutually agree to commence cargo operations before the laycan commences. In this case, the charterer may be able to save on demurrage costs and optimize their scheduling.
  2. Waiting time: If the berth is not available or the charterer is not ready to load or discharge the cargo, the ship may have to wait until the laycan commences. This waiting time usually does not count towards laytime or demurrage, as the ship has arrived earlier than the agreed period.
  3. Rejection: In some cases, the charterer may have the right to reject the ship if it arrives before the laycan period, depending on the terms of the charter party. However, this is not a common practice, as it could lead to additional costs and complications for both parties.
  4. Negotiation: The shipowner and charterer may negotiate a new laycan period or other terms to accommodate the early arrival. This could include adjustments to the freight rate or demurrage rates, depending on the situation and the willingness of both parties to cooperate.

When a ship arrives before the laycan, the outcome depends on the specific circumstances, berth availability, and the terms of the charter party agreement. Communication and negotiation between the shipowner and charterer are key to finding a solution that benefits both parties.

 

Ship Premature Arrival and Notice of Readiness (NOR)

A ship’s premature arrival and the issuance of a Notice of Readiness (NOR) are two separate but interconnected aspects of maritime operations. Here’s an explanation of both and how they relate to each other:

  1. Ship Premature Arrival: A ship is considered to have arrived prematurely when it reaches the port before the agreed-upon laycan (Laydays-Cancelling) period. The laycan is a specific time range agreed upon between the shipowner and the charterer, within which the ship is expected to arrive at the loading or discharging port.
  2. Notice of Readiness (NOR): A Notice of Readiness (NOR) is a formal document issued by the ship’s master or the shipowner’s agent, stating that the ship has arrived at the port and is ready in all aspects to load or discharge cargo. The Notice of Readiness (NOR) is an essential document because it triggers the commencement of laytime, which is the period allowed by the charterer for loading or discharging the cargo. Once the laytime begins, any delay beyond the agreed time may lead to demurrage charges for the charterer.

When a ship arrives prematurely at the port, there are a few possible scenarios concerning the issuance of the NOR:

a) The charterer accepts the early arrival and agrees to start cargo operations before the laycan period. In this case, the ship’s master can issue the Notice of Readiness (NOR), and the laytime will commence as soon as the Notice of Readiness (NOR) is tendered and accepted.

b) If the charterer does not agree to start cargo operations before the laycan period or the berth is not available, the ship’s master may still issue the Notice of Readiness (NOR). However, the laytime will not commence until the first day of the laycan period, provided that all other Notice of Readiness (NOR) requirements are met.

c) In some cases, depending on the charter party agreement, the charterer may reject the ship due to its premature arrival. In this scenario, the Notice of Readiness (NOR) would not be accepted, and a new agreement or negotiation may be necessary between the shipowner and charterer.

A ship’s premature arrival and the issuance of the Notice of Readiness (NOR) are crucial aspects of maritime operations that can impact the commencement of laytime and potential demurrage charges. Clear communication and understanding between the shipowner and charterer are essential to manage such situations effectively.

 

What conditions must take part before the commencement of Laytime?

Laytime is the period agreed upon in a charter party contract between a shipowner and a charterer, during which the charterer has the right to load or discharge cargo without incurring additional costs, such as demurrage. For laytime to start, several conditions must be met:

  1. Arrival of the ship: The ship must arrive at the designated port or berth, as specified in the charter party agreement. In some cases, the charter party may define the arrival location more broadly, such as within the port limits or at the customary anchorage.
  2. Notice of Readiness (NOR): The ship’s master or the shipowner’s agent must tender a Notice of Readiness (NOR) to the charterer or their agent. The Notice of Readiness (NOR) is a formal document stating that the ship has arrived at the port and is ready in all aspects to load or discharge cargo.
  3. Ship readiness: The ship must be in a suitable condition to load or discharge cargo. This may include having the required certifications, being free of defects or damage that could hinder cargo operations, and having sufficient cargo holds cleaned and prepared for the intended cargo.
  4. Within laycan period: The ship should ideally arrive within the agreed-upon laycan (Laydays-Cancelling) period, which is a specific time range set in the charter party for the ship’s arrival at the port. If the ship arrives before or after the laycan period, laytime commencement may be subject to negotiation or specific terms in the charter party.
  5. Free pratique and customs clearance: The ship must obtain free pratique (clearance from health authorities) and customs clearance before commencing cargo operations. These clearances ensure that the ship meets all required health, safety, and customs regulations.
  6. Berth availability: A suitable berth must be available for the ship to dock and start cargo operations. In some cases, the ship may have to wait at anchorage until a berth becomes available.

Once all these conditions are met, laytime can commence, typically at a predetermined time after the NOR is tendered and accepted (e.g., six hours after NOR). The specific details of laytime commencement and calculation may vary depending on the terms of the charter party agreement, and it is essential for both shipowners and charterers to understand their respective rights and obligations concerning laytime.

 

Ship Readiness, Cargo Hold Readiness and Notice of Readiness (NOR)

Ship readiness, cargo hold readiness, and Notice of Readiness (NOR) are interconnected aspects of maritime operations that ensure the efficient and safe loading or discharging of cargo at a designated port. Here’s an explanation of each aspect and their relationship:

  1. Ship Readiness: Ship readiness refers to the condition of the ship when it arrives at the loading or discharging port. For a ship to be considered ready, it must meet several requirements, such as:
    • Compliance with safety, health, and environmental regulations.
    • Proper functioning of all necessary equipment and machinery.
    • Adequate staffing with competent crew members.
    • Necessary certifications and documentation in place.
    • Obtaining free pratique (health clearance) and customs clearance.
  2. Cargo Hold Readiness: This refers to the condition of the ship’s cargo holds, which must be prepared for the specific cargo to be loaded or discharged. Some key aspects of cargo hold readiness include:
    • Proper cleaning and removal of any residues or debris from previous cargoes.
    • Ensuring the cargo holds are dry, well-ventilated, and free from any infestations.
    • Inspection and maintenance of hatch covers, ensuring they are watertight and properly sealed.
    • Proper arrangement of dunnage, securing equipment, or other necessary items depending on the type of cargo.
    • Compliance with any specific requirements for the intended cargo, such as temperature control for perishable goods or proper segregation for hazardous materials.
  3. Notice of Readiness (NOR): A NOR is a formal document issued by the ship’s master or the shipowner’s agent, stating that the ship has arrived at the port and is ready in all aspects, including ship and cargo hold readiness, to load or discharge cargo. The NOR serves as a trigger for the commencement of laytime, which is the period allowed by the charterer for loading or discharging the cargo without incurring additional costs like demurrage.

Ship readiness, cargo hold readiness, and the Notice of Readiness (NOR) are essential aspects of maritime operations that ensure the ship is prepared and capable of safely and efficiently carrying out cargo operations. All these elements are interconnected, and meeting the necessary requirements is vital to avoid potential delays, penalties, or contractual disputes between the shipowner and the charterer.

 

Notice of Readiness (NOR) Tendered Meaning

Notice of Readiness (NOR) is a term commonly used in the shipping industry. When a ship is prepared to load or discharge cargo at a port, the ship’s master or an authorized representative submits a Notice of Readiness (NOR) to the charterer, port authorities, or cargo receivers. The NOR is a document that confirms that the ship has arrived at the designated location and is ready to carry out the necessary operations, such as loading or discharging cargo.

When the Notice of Readiness (NOR) is “tendered,” it means that the document has been submitted, presented, or offered by the ship’s master or an authorized representative to the relevant party (such as the charterer, port authorities, or cargo receivers). The process of tendering the NOR is a way of formally notifying the concerned parties that the ship is prepared to commence cargo operations.

“Notice of Readiness (NOR) Tendered” signifies that the NOR has been submitted to the relevant party, indicating that the ship is ready to load or discharge cargo at the designated port. The acceptance of the NOR by the relevant party usually triggers the commencement of laytime, which is the agreed-upon period in a charter party contract for loading or discharging cargo.

 

Notice of Readiness (NOR) Accepted Meaning

Notice of Readiness (NOR) is a term commonly used in the shipping industry. When a ship is ready to load or discharge cargo at a port, the ship’s master or an authorized representative submits a NOR to the charterer, port authorities, or cargo receivers. The Notice of Readiness (NOR) is a document that confirms that the ship has arrived at the designated location and is prepared to carry out the necessary operations, such as loading or discharging cargo.

When the Notice of Readiness (NOR) is “accepted,” it means that the relevant party, usually the charterer or cargo receivers, acknowledges and agrees that the ship is indeed ready to perform its duties. The acceptance of the NOR typically triggers the commencement of laytime, which is the period agreed upon in a charter party contract for loading or discharging cargo.

“Notice of Readiness (NOR) Accepted” signifies that the relevant party has acknowledged and agreed that the ship is ready to load or discharge cargo, and the laytime countdown has started accordingly.

 

Notice of Readiness (NOR) and Commercial Readiness

The Notice of Readiness (NOR) is a widely recognized document within the shipping industry. In essence, it indicates that the ship is at the charterer’s disposal and fully prepared to commence loading or discharging operations, thereby initiating the running of laytime, i.e., the time permitted to the charterer for such operations under the contract.

For an NOR to be deemed valid, the ship must be considered an “arrived ship,” meaning it has arrived at the agreed-upon location, be “physically ready,” such as having all cargo spaces cleaned and prepared to receive cargo, and be “legally ready,” implying that all necessary paperwork is available for loading or discharging. If the ship is not ready at the time of the NOR tendering, it is considered invalid.

 

Notice of Readiness (NOR) and Bunkering Case

While the Notice of Readiness (NOR) procedure appears straightforward in principle, disputes often arise regarding its validity and, as a result, the calculation of laytime.

We will examine a situation frequently encountered by ship owners, namely waiting for a berth’s availability after the Notice of Readiness (NOR) has been tendered. What can they do during this waiting period? Should they sit idle and wait until the berth becomes available, or can they engage in other activities, such as bunkering, tank cleaning, or even performing other cargo operations?

It is beyond debate that ship owners cannot deprive charterers of ship use. Therefore, the ship must be at the charterer’s disposal. The question is what that means when it comes to the ship’s use while waiting for the berth.

In London Arbitration 8/08 748 LMLN, the charterers were held accountable for paying for the time the ship was taking on bunkers while waiting for a berth. The arbitrator determined that the ship had followed the charterer’s orders to wait until it was called to berth and that the ship was maintained in commercial readiness, able to move to the berth whenever required by the charterers. As a result, the bunkering operations did not impede the running of laytime.

Following that reasoning, Cantiere Navale Triestina v. Handelsvertretung der Russe Soviet Republik Naphtha Export (1925) 21 Ll.L.Rep. 204 stated:

“If one comes to think of it, there can be no reason why the absence of the ship from the harbor, once the lay days have begun to run, without any fault on the part of the owner, should prevent the lay days from continuing to run, and the ship going on demurrage. A ship may be prevented from loading by causes quite outside the will of either the shipowner or the charterer, and yet the charterer is liable for demurrage. It appears to me to make no difference whether the ship is in the harbor fifty yards away from a berth and cannot get to it or whether she is fifty miles away. In either case, the charterer has undertaken to load and is liable for the delay because he has entered into a contract to load the ship within a certain time, and if he does not do so, he pays a fixed sum for the delay.”

However, the precise limitations on what can be done during the waiting period remain uncertain, as seen in the Stolt Tankers Inc v Landmark Chemicals SA [2001] EWHC 522 (Comm) ruling.

After submitting the Notice of Readiness (NOR) and becoming aware of a fifteen-day queue for berthing, the owners of the ship undertook the task of loading and discharging cargo for two additional charterers, in addition to performing tank cleaning. After completing these activities, the ship returned to await the commencement of discharge, during which time the owners claimed laytime and demurrage without interruption from the Notice of Readiness (NOR) until discharge was completed. However, the arbitrators concluded that the ship was not at the disposal of the charterers, but rather was being used for the owners’ own purposes, and as such, no compensation was owed to the owners and laytime should not have been counted.

It is worth considering if the outcome would have been different if the owners had solely performed tank cleaning, as in London Arbitration 8/08 748 LMLN, where bunkering was treated as a similar activity. In Ropner Shipping Co Ltd v Cleeves Western Valleys Anthracite Collieries Ltd (The Ropner) (1927) 27 Ll.L.Rep. 317, it was determined that taking on bunkers before the completion of loading and after the ship was already on demurrage resulted in a loss of time to the charterers, leading to the suspension of demurrage during this period. However, it was emphasized that if the ship had bunkered before or after the commencement of demurrage and if no cargo was available for loading, time would have continued to run without suspension.

From a commercial standpoint, it seems reasonable to assume that as long as no time is lost for the charterer and there is no fault on the part of the owners, laytime or demurrage should continue to run. Nevertheless, there is still some uncertainty on this point, as the existing case law does not provide absolute clarity. Therefore, until the courts provide further guidance, it is advisable to include a provision in the charter party that addresses bunkering or other ship use after the tendering of the Notice of Readiness (NOR) but before a berth is available.

 

Notice of Readiness (NOR) for Laytime Calculation

The issue of laytime and demurrage is one of the most contentious matters in the shipping industry. The language used in contracts can be quite intricate, and it is not uncommon for shipowners and charterers to experience delays while in port, leading to demurrage charges being levied. Additionally, the imprecise wording in charter party agreements can create ambiguity, resulting in many disputes. Consequently, shipowners are frequently seeking ways to avoid or minimize demurrage fees. Some tactics include sending cargo and delivery instructions in advance, having a backup plan for trucking, and requesting extended free time at the port.

Laytime, lay day, and demurrage refer to specific terms used in these contracts. Laytime is defined as “the period of time agreed upon by both parties during which the owner of the ship makes the ship available for loading or unloading without any additional payment beyond the freight.” If the ship fails to complete the work during this agreed-upon time and is required to remain at the port for a longer duration, demurrage fines will be imposed on the shipowner.

It is important to note that laytime only commences once these three conditions have been satisfied: first, the ship must be considered an “arrived ship” according to the charter party terms. Second, the ship must be entirely ready for loading or unloading. Finally, notice of readiness must be served on the charterers or their agent in accordance with the charter party.

Lay day, on the other hand, refers to “the days specified for loading or unloading cargo from a ship.” Typically, lay days begin when the ship issues a Notice of Readiness (NOR) document to initiate the loading or unloading process. A dispute arose in the case study of “MEXICO I” due to the timing of the Notice of Readiness (NOR) presentation.

MV MEXICO I Case and Notice of Readiness (NOR)

In the “MEXICO I” case, the shipowners transported part of a maize cargo from Argentina to Angola for the charterers. Under the charter party agreement, the shipowners had the right to complete the ship with another cargo of beans. When the ship completed loading, it was also carrying a cargo of beans for the same charterer under a different agreement. Both cargoes were over-stowed by parts of the completion cargo.

When the ship arrived at the discharge port, Notice of Readiness was tendered on January 25. However, at the time of tender, neither of the charterers’ cargoes was accessible due to the over-stow of the completion cargo. The maize cargo only became accessible on February 6, and the beans on February 19 when both cargoes were unloaded. The shipowners contended that laytime began when the cargo became entirely accessible on February 6. However, the charterers claimed it commenced on February 19.

The Court of Appeal declared that the notice was null and void in terms of commencing laytime, even if the charterers were aware of the ship’s subsequent readiness. Consequently, the charterers were entitled to demand a further Notice of Readiness to initiate laytime, unless they had waived their right to another notice or had agreed that it was unnecessary in the meantime.

In this case, the Judge acknowledged that the notice was invalid, but the charterers had unwittingly accepted its terms when their agents began the discharge process. However, as a matter of principle, the judge affirmed that accepting an invalid notice in circumstances where the charterers were unaware of the inaccuracy could not bind them. They were free to challenge the notice’s effect at a later stage. Further details on what constitutes a waiver of defect or acceptance of an invalid notice are discussed below.

 

What is TT (Turn Time)? Turn Time and Notice of Readiness (NOR)

Turn Time (TT) refers to the period required for a ship to complete its loading or unloading operations in a port. It is an important aspect of shipping operations, as it directly impacts the efficiency and cost-effectiveness of maritime transport. Turn Time usually involves the following processes:

  1. Berthing: The process of securing the ship to a berth in the port, which may involve waiting for an available berth.
  2. Cargo handling: The time taken to load or unload the cargo from the ship.
  3. Documentation: Completing the necessary paperwork and customs procedures.
  4. De-berthing: The process of releasing the ship from its berth and preparing it for departure.

Notice of Readiness (NOR) is a formal document submitted by the ship’s master or agent to notify the charterer or receiver that the ship has arrived at the port and is ready to start loading or unloading operations. The Notice of Readiness (NOR) indicates that the ship has completed all necessary preparations, such as complying with customs, immigration, and port regulations, and is ready to receive or discharge cargo.

Once the Notice of Readiness (NOR) is accepted by the charterer or receiver, the laytime begins. Laytime is the period allowed by the charter party for the loading or unloading of cargo. If the ship completes the cargo operations within the agreed laytime, no penalties will be applied. However, if the ship exceeds the allowed laytime, demurrage (a penalty for delay) may be charged by the ship owner to the charterer or receiver.

Turn Time  (TT) is the duration required for a ship to complete its cargo operations in a port, while Notice of Readiness is a formal document that informs the charterer or receiver that the ship is ready to commence cargo handling.

What is Free Turn Time (TT) in shipping?

In shipping, Free Turn Time (TT) refers to the period granted by a port or terminal for cargo handling operations, such as loading and unloading, without incurring any additional charges. This period is specified by the port or terminal authorities and is typically included in the tariff or usage agreements.

Free Turn Time is designed to encourage efficient cargo handling and minimize congestion in the port or terminal. If a ship exceeds the Free Turn Time, additional charges, known as detention or demurrage fees, may be incurred. These fees are applied to compensate the port or terminal for the extra time and resources used during the extended cargo handling process.

Free Turn Time is a specified duration allowed by a port or terminal for cargo operations to be completed without additional charges. If a ship exceeds this period, it may be subject to detention or demurrage fees.

 

WWWW Clause and Notice of Readiness (NOR)

The WWWW (Wibon, Wipon, Wifpon, Wiccon) Clause is a provision in a charter party agreement that relates to the Notice of Readiness (NOR) and commencement of laytime. The clause is designed to provide flexibility for ship owners and charterers by defining specific conditions for tendering NOR and starting the laytime countdown. The WWWW clause consists of four sub-clauses:

  1. WIBON (Whether In Berth or Not): This clause allows the ship’s master to tender Notice of Readiness (NOR) even if the ship has not yet secured a berth. The laytime starts counting as soon as NOR is accepted, irrespective of whether the ship is in berth or still waiting for one.
  2. WIPON (Whether In Port or Not): This clause permits the master to tender NOR when the ship is within the port limits but not necessarily in the designated loading or discharging area. The laytime starts once NOR is accepted, regardless of the ship’s exact location within the port.
  3. WIFPON (Whether In Free Pratique or Not): Free pratique is the clearance given by port health authorities to a ship, confirming that it is free from contagious diseases and pests. Under the WIFPON clause, the master can tender NOR before the ship has obtained free pratique, and laytime begins once NOR is accepted.
  4. WICCON (Whether In Customs Clearance or Not): This clause allows the master to tender NOR before the ship has received customs clearance. The laytime starts as soon as Notice of Readiness (NOR) is accepted, even if the customs clearance process is still ongoing.

The WWWW Clause and Notice of Readiness (NOR) are closely related, as the clause sets specific conditions under which NOR can be tendered and laytime can commence. By incorporating the WWWW Clause into a charter party agreement, both ship owners and charterers can achieve greater flexibility and adaptability in the handling of shipping operations.

 

1- WIBON (Whether In Berth or Not) and Notice of Readiness (NOR)

WIBON (Whether In Berth or Not) is a clause in a charter party agreement related to the Notice of Readiness (NOR) and commencement of laytime. The WIBON clause allows for greater flexibility in the tendering of NOR and starting the laytime countdown in situations where a ship has not yet secured a berth at the port.

Under normal circumstances, a ship’s master can only tender NOR once the ship has arrived at its designated berth and is ready to load or discharge cargo. However, with the WIBON clause included in the charter party agreement, the ship’s master can tender NOR even if the ship is still waiting for a berth. This clause ensures that the laytime starts counting as soon as the Notice of Readiness (NOR) is accepted, irrespective of whether the ship is in berth or not.

The WIBON clause is particularly useful in situations where berths are congested or unavailable upon the ship’s arrival, as it allows the ship owner to start counting laytime without waiting for a berth to become available. This can help protect the ship owner from potential delays and financial losses due to berth unavailability.

The WIBON clause allows a ship’s master to tender NOR even if the ship has not yet secured a berth, providing greater flexibility in the commencement of laytime. This clause can be particularly beneficial in situations where berths are congested or unavailable, helping to protect the ship owner from potential delays and financial losses.

 

2- WIPON (Whether In Port or Not) and Notice of Readiness (NOR)

WIPON (Whether In Port or Not) is a clause in a charter party agreement related to the Notice of Readiness (NOR) and commencement of laytime. The WIPON clause provides added flexibility in tendering NOR and starting the laytime countdown in situations where a ship is within the port limits but not necessarily at its designated loading or discharging area.

Under standard circumstances, a ship’s master can only tender NOR once the ship has arrived at its designated berth or anchorage within the port and is ready to load or discharge cargo. However, when the WIPON clause is included in the charter party agreement, the ship’s master can tender NOR even if the ship is only within the port limits, regardless of its precise location. This clause ensures that the laytime starts counting as soon as the NOR is accepted, irrespective of the ship’s exact position within the port.

The WIPON clause is particularly helpful in situations where the designated loading or discharging area is congested or unavailable upon the ship’s arrival. By allowing the ship owner to start counting laytime without waiting for the ship to reach its designated area, the WIPON clause helps protect the ship owner from potential delays and financial losses due to port congestion or unavailability of specific berths or anchorages.

The WIPON clause allows a ship’s master to tender Notice of Readiness (NOR) even if the ship is only within the port limits and not at its designated loading or discharging area, providing greater flexibility in the commencement of laytime. This clause can be particularly beneficial in situations where the designated areas are congested or unavailable, helping to protect the ship owner from potential delays and financial losses.

 

3- WIFPON (Whether In Free Pratique or Not) and Notice of Readiness (NOR)

WIFPON (Whether In Free Pratique or Not) is a clause in a charter party agreement related to the Notice of Readiness (NOR) and commencement of laytime. The WIFPON clause offers additional flexibility in tendering NOR and starting the laytime countdown in situations where a ship has not yet obtained free pratique clearance from the port health authorities.

Free pratique is a clearance granted by the port health authorities, confirming that a ship is free from contagious diseases and pests. Under normal circumstances, a ship’s master can only tender Notice of Readiness (NOR) once the ship has arrived at its designated berth or anchorage and has obtained free pratique clearance, indicating it is ready to load or discharge cargo.

However, when the WIFPON clause is included in the charter party agreement, the ship’s master can tender NOR even before the ship has received free pratique clearance. This clause ensures that the laytime starts counting as soon as the Notice of Readiness (NOR) is accepted, irrespective of whether the ship has obtained free pratique or not.

The WIFPON clause is particularly useful in situations where there are delays in obtaining free pratique clearance, as it allows the ship owner to start counting laytime without waiting for the clearance. This helps protect the ship owner from potential delays and financial losses due to administrative or health-related issues at the port.

The WIFPON clause allows a ship’s master to tender NOR even if the ship has not yet obtained free pratique clearance, providing greater flexibility in the commencement of laytime. This clause can be particularly beneficial in situations where there are delays in obtaining free pratique, helping to protect the ship owner from potential delays and financial losses.

 

4- WICCON (Whether In Customs Clearance or Not) and Notice of Readiness (NOR)

WICCON (Whether In Customs Clearance or Not) is a clause in a charter party agreement related to the Notice of Readiness (NOR) and commencement of laytime. The WICCON clause offers additional flexibility in tendering Notice of Readiness (NOR) and starting the laytime countdown in situations where a ship has not yet obtained customs clearance from the port authorities.

Under normal circumstances, a ship’s master can only tender NOR once the ship has arrived at its designated berth or anchorage, completed customs formalities, and is ready to load or discharge cargo. Customs clearance is a crucial step in the process, as it ensures the ship complies with local regulations and import/export requirements.

However, when the WICCON clause is included in the charter party agreement, the ship’s master can tender Notice of Readiness (NOR)  even before the ship has received customs clearance. This clause ensures that the laytime starts counting as soon as the NOR is accepted, irrespective of whether the ship has obtained customs clearance or not.

The WICCON clause is particularly useful in situations where there are delays in obtaining customs clearance, as it allows the ship owner to start counting laytime without waiting for the clearance. This helps protect the ship owner from potential delays and financial losses due to administrative issues at the port.

The WICCON clause allows a ship’s master to tender NOR even if the ship has not yet obtained customs clearance, providing greater flexibility in the commencement of laytime. This clause can be particularly beneficial in situations where there are delays in obtaining customs clearance, helping to protect the ship owner from potential delays and financial losses.

 

Key Points of the Notice of Readiness (NOR)

The Notice of Readiness (NOR) is a crucial document in maritime shipping, signaling that a ship has arrived at the port and is prepared to begin loading or unloading operations. Here are the key points of the Notice of Readiness (NOR):

  1. Purpose: The primary purpose of the Notice of Readiness (NOR) is to inform the charterer, receiver, or consignee that the ship is ready to commence cargo handling operations, such as loading or unloading.
  2. Timing: The Notice of Readiness (NOR) is typically tendered by the ship’s master or agent upon the ship’s arrival at the designated port, berth, or anchorage, once it has completed all necessary preparations and formalities.
  3. Content: The Notice of Readiness (NOR)should include essential information, such as the ship’s name, the date and time of arrival, the cargo to be loaded or unloaded, and the ship’s readiness to perform the agreed-upon operations.
  4. Formalities: Before tendering the Notice of Readiness (NOR), the ship must complete various formalities, such as obtaining customs clearance, securing free pratique (health clearance), and complying with port, immigration, and security regulations.
  5. Acceptance: The charterer or receiver must accept the Notice of Readiness (NOR)before laytime begins. Laytime is the period allowed by the charter party for the loading or unloading of cargo. Once accepted, the countdown for laytime commences.
  6. Demurrage and Despatch: If the ship completes cargo operations within the agreed laytime, the charterer may be entitled to despatch, which is a monetary reward for finishing operations early. However, if the ship exceeds the allowed laytime, the ship owner may charge demurrage (a penalty for delay) to the charterer or receiver.
  7. WWWW Clauses: The WIBON, WIPON, WIFPON, and WICCON clauses provide flexibility in tendering Notice of Readiness (NOR) and commencing laytime under specific conditions. These clauses address situations where the ship is not yet in berth, within the port limits, has not obtained free pratique, or has not received customs clearance, respectively.

The Notice of Readiness (NOR) is a vital document in maritime shipping, signifying a ship’s readiness to commence cargo handling operations. The NOR is essential for communication between the ship owner, charterer, or receiver, and its acceptance marks the beginning of laytime, which impacts potential demurrage or despatch fees.