What is Laytime?

Laytime is the period contractually allowed to the Charterer for loading and/or discharging cargo under a Voyage Charterparty. In simple terms, it is the time bought by the Charterer as part of the freight bargain. The Shipowner agrees to provide the ship for the voyage, and the Charterer is given an agreed amount of time to place the cargo on board at the loading port and remove the cargo at the discharging port. If the Charterer uses more time than the Charterparty permits, the financial consequence is usually Demurrage. If the Charterer uses less time than permitted, the Charterer may, if the Charterparty provides for it, earn Despatch Money.

Laytime is one of the most important commercial subjects in dry cargo chartering, tanker chartering, and voyage charter practice because time in port directly affects the profitability of a voyage. A ship earns by moving cargo, not by waiting unnecessarily at berth, anchorage, roads, or terminal. The longer the ship is delayed beyond the agreed time, the greater the Shipowner’s lost commercial opportunity. For that reason, the parties normally agree a daily Demurrage Rate at the fixing stage so that the cost of delay can be calculated without proving the Shipowner’s actual loss in every case.

Although the basic idea of laytime is straightforward, actual Laytime Calculation can be technically demanding. The result may depend on the Charterparty form, rider clauses, Notice of Readiness wording, Statement of Facts, port customs, weather records, berth availability, working periods, holidays, strikes, shifting, cargo gear performance, draft surveys, and the exact wording used to describe the allowed time. A small difference in clause wording can produce a large financial difference in a demurrage or despatch claim.

In voyage chartering, laytime is therefore not just an operational topic. It is a legal and commercial mechanism for allocating port time risk between Shipowner and Charterer. If the contract is drafted clearly and the port records are accurate, laytime can be calculated fairly. If the wording is poor or the Statement of Facts is incomplete, disputes can become expensive and difficult to resolve.

Laytime, Demurrage, Detention, and Despatch

If the permitted Laytime is exceeded, the Shipowner or Ship Operator will normally be entitled to compensation. In most Voyage Charterparties, that compensation is pre-agreed as Demurrage. Demurrage is usually expressed as a daily amount, or pro rata for part of a day. It is a form of agreed or liquidated damages for keeping the ship beyond the time allowed for cargo operations.

The Demurrage Rate is usually negotiated freely between Shipowner and Charterer when the fixture is concluded. The rate may reflect the freight market, ship size, voyage economics, port risk, cargo type, expected delay risk, and bargaining strength of the parties. A Shipowner in a strong market may insist on a higher demurrage rate. A Charterer in a weak market may negotiate a lower rate. The agreed figure may not perfectly match the Shipowner’s actual loss, but it provides certainty and avoids the need to prove daily loss every time the ship is delayed.

Some Charterparty forms limit the period for which demurrage applies. Older forms, such as certain versions of Gencon, may contain wording under which demurrage applies for a stated number of days and further delay may give rise to Damages for Detention. Detention is different from demurrage. Demurrage is normally pre-agreed. Detention must usually be proved as an actual loss caused by the Charterer’s breach or failure to perform within the contractual framework.

Damages for Detention may be higher or lower than the agreed demurrage rate. If the freight market has risen sharply and the Shipowner loses a valuable next fixture because of delay, the Shipowner may claim a substantial loss if the evidence supports it. If the market is poor, the real loss may be lower than the demurrage rate. Proving detention can require documents, witness evidence, market evidence, follow-on fixture evidence, and legal argument. Because of this uncertainty, many modern Charterparties prefer a single demurrage regime instead of shifting from demurrage to detention after a fixed period.

Where cargo operations are completed before the allowed laytime is fully used, the Charterer may be rewarded with Despatch Money. Despatch is not automatic. It is payable only if the Charterparty says so. In many dry cargo trades, despatch is agreed at half the demurrage rate, commonly referred to as DHD, meaning Despatch Half Demurrage. Some trades agree no despatch at all, while others negotiate a special rate. Despatch encourages efficient cargo operations, but Shipowners must account for it in voyage estimation because it can reduce net voyage earnings.

Why Laytime Calculation Matters

Laytime Calculation should never be treated as a clerical exercise. It can decide whether the Shipowner receives demurrage, whether the Charterer receives despatch, or whether nothing further is payable. For large cargoes and high demurrage rates, the amount at stake may be substantial. Even a few hours can have a meaningful financial value where the demurrage rate is high.

Laytime also affects the wider commercial relationship between Shipowner, Charterer, shipper, receiver, trader, and broker. A disputed calculation can delay final freight settlement, damage future business, or lead to arbitration. Good laytime work requires accurate facts, careful reading of the Charterparty, knowledge of shipping practice, and an understanding of legal principles affecting Notice of Readiness, arrived ship status, exceptions, interruptions, and demurrage.

In practice, the person preparing a laytime statement must not simply copy times from the Statement of Facts into a spreadsheet. The Statement of Facts records events. The Charterparty decides the legal effect of those events. A rain period, holiday, berth shift, strike, free pratique delay, customs delay, draft survey, or ship gear stoppage may count or not count depending on the contract wording. The same port events may produce different laytime results under different Charterparties.

Main Stages of Laytime Calculation

A reliable Laytime Calculation normally follows a structured process. The main stages are:

1. Review the Laytime clauses in the Charterparty.
2. Examine the Statement of Facts (SOF).
3. Determine the allowed Laytime Duration.
4. Establish when Laytime Commencement occurs.
5. Apply agreed Laytime Interruptions and exceptions.
6. Identify when Laytime Cessation occurs.
7. Calculate Demurrage, Despatch Money, or any other agreed financial result.

This sequence is important because each stage depends on the previous one. If the allowed laytime is calculated incorrectly, the final demurrage figure will be wrong. If the NOR is invalid, laytime may not have started when the Shipowner believes it did. If weather exceptions are misunderstood, time may be deducted incorrectly. If cargo completion time is wrong, the final balance will be unreliable.

1- Check the Laytime Clauses in the Charterparty

The first step is to read the Charterparty carefully. The relevant clauses may be found in the printed form, the recap, rider clauses, additional clauses, or incorporated terms. The laytime provisions may not appear in one neat paragraph. They may be spread across the cargo clause, loading clause, discharging clause, NOR clause, demurrage clause, despatch clause, strike clause, weather clause, shifting clause, exception clause, and commission clause.

The Charterparty should be checked for the permitted laytime, cargo quantity, loading/discharging rates, whether laytime is reversible or average, whether Saturdays, Sundays, and holidays are excepted or included, whether weather interruptions apply, whether NOR can be tendered at berth, port, anchorage, or waiting place, and whether special clauses such as WIBON, WIPON, WIFPON, or WCCON apply.

Many disputes arise because parties use familiar abbreviations without appreciating their full effect. SHEX, SHINC, SSHEX, SSHINC, WWD, DWP, CQD, FAC, ATDNSHINC, EIU, UU, WIBON, WIPON, and other expressions can have serious financial consequences. The safest approach is to define the wording clearly in the Charterparty rather than rely on assumed market understanding.

Careful drafting is particularly important because laytime law has developed through many disputes. Standard expressions may have technical meanings, and small wording differences can alter the allocation of risk. A Shipowner, Charterer, or Shipbroker drafting laytime clauses should therefore understand not only the commercial intention but also the legal consequences of the wording selected.

2- Check the Statement of Facts (SOF)

The Statement of Facts (SOF) is the primary factual record of the ship’s port call. It usually records arrival, anchoring, berthing, shifting, tendering and acceptance of NOR, free pratique, customs clearance, cargo operation periods, weather delays, stoppages, strikes, equipment breakdowns, draft surveys, bunkering, opening and closing hatches, completion of loading or discharge, document completion, sailing, and any other event relevant to the port operation.

The Statement of Facts (SOF) is often prepared by the Ship Agent. In some ports, it may also be called a port log, port statement, or operations log. It should be factual, chronological, and precise. Times should be recorded consistently, usually in local time unless otherwise stated. Ambiguous phrases such as “morning,” “about noon,” or “after rain” should be avoided where possible because laytime disputes often turn on exact times.

The Ship Agent should receive proper instructions before the ship arrives. Ideally, the agent should be given a copy of the Charterparty or at least the relevant laytime clauses. This helps the agent understand which events must be recorded. For example, if the Charterparty includes a weather exception, weather periods must be recorded accurately. If hatch opening time matters, hatch events should be recorded. If free pratique or customs clearance affects NOR validity, the timing of those formalities must be stated.

The Ship Master should check the Statement of Facts before signing. Shippers, receivers, Charterers’ agents, terminal representatives, or other interested parties may also sign. Signing the Statement of Facts does not necessarily mean agreeing to the legal laytime calculation. It usually confirms the recorded facts. If a party disagrees with the record, that party should sign Under Protest and state the reason clearly. A reservation made at the time is much stronger than an objection raised weeks later after the claim has been calculated.

Modern port agency systems may allow Shipowners and Charterers to monitor a live Statement of Facts while the ship is still in port. This can reduce later disputes because errors can be corrected immediately. Electronic SOF data may also be imported into laytime software. However, software does not replace judgment. The system can calculate only according to the assumptions entered by the user.

3- Determine the Laytime Duration

Laytime Duration is the amount of time allowed to the Charterer for cargo operations. It may be fixed, calculated from the cargo quantity, calculated per hatch, or left uncertain under customary terms. The three main categories are:

1. Calculable Laytime
2. Definite Laytime
3. Indefinite Laytime

Calculable Laytime

Calculable Laytime is calculated by applying a contractual loading or discharging rate to the cargo quantity. The most common method is tonnage-based. If the Charterparty states that cargo is to be loaded or discharged at a specified number of metric tonnes per day, the allowed laytime is calculated by dividing the cargo quantity by the daily rate.

For example, if the cargo quantity is 100,000 metric tonnes and the loading rate is 10,000 metric tonnes per day, the allowed laytime for loading is 10 days. If the final cargo quantity is 105,000 metric tonnes and the Charterparty allows the Shipowner to load 5% more or less in Shipowner’s option, the laytime may be calculated by dividing 105,000 metric tonnes by 10,000 metric tonnes per day, producing 10.5 days.

Where cargo quantity is expressed with a margin, such as “about,” “more or less,” “minimum/maximum,” MOLOO, or MOLCO, the Charterparty should make clear which quantity is used for laytime purposes. If laytime is linked to the actual cargo loaded, a higher loaded quantity may produce more laytime. If laytime is fixed by agreed quantity, the result may differ. The wording must be checked carefully.

Calculable Laytime Hatch Calculations

Hatch-based calculations can be more complex. A Charterparty may state that cargo is to be loaded or discharged at a certain number of tonnes per hatch per day, per workable hatch per day, or per working hatch per day. These expressions are not the same and can materially affect the allowed time.

If the rate is expressed simply as “per hatch per day,” the calculation may be based on the total number of hatches. For example, if a ship has five hatches and the discharge rate is 1,750 metric tonnes per hatch per day, the combined daily rate is 8,750 metric tonnes. A cargo of 70,000 metric tonnes would therefore produce 8 days of laytime.

If the wording refers to Workable Hatch, Working Hatch, or Available Hatch, the calculation may depend on which hatch can actually be worked. At the loading port, a hatch is workable only if there is space beneath it to receive cargo. At the discharging port, a hatch is workable only if cargo remains beneath it. As holds become empty, the number of workable hatches may reduce.

Because this can make calculations complicated, established practice often focuses on the largest quantity of cargo served by one hatch or cargo unit. If one hold contains the largest cargo unit and that quantity is divided by the per-hatch daily rate, the result may determine the total allowed laytime. If one hold is served by more than one hatch, the unit may need to be divided accordingly. The correct result depends on the precise wording, the ship’s hold and hatch arrangement, and the cargo distribution.

Definite Laytime

Definite Laytime means that the Charterparty states a fixed amount of time, such as “10 weather working days,” “72 running hours,” or “20 working days of 24 consecutive hours for all purposes.” The time may be allowed separately for loading and discharging, or it may be allowed for both operations combined. When one total period is allowed for loading and discharging together, the expression Laytime For All Purposes may be used.

Definite laytime is easier to identify than calculable laytime because the number of days or hours is stated directly. However, the calculation may still be complicated by exceptions, interruptions, NOR rules, layday restrictions, holidays, weather clauses, and reversible or average laytime wording. The fixed amount tells the calculator how much time is available, but it does not answer when time starts, when it stops, or which periods are excluded.

Indefinite Laytime

Indefinite Laytime arises where the Charterparty does not provide a fixed or calculable allowance but uses expressions such as:

• Custom of the Port (COP)
• Customary Despatch (CD)
• Customary Quick Despatch (CQD)
• Fast as Can (FAC)

These expressions give the Charterer a more flexible period for cargo operations. However, flexibility does not mean unlimited delay. The Charterer must act reasonably and in accordance with the relevant contractual expression. If the cargo is not available when the ship arrives within laydays, the Charterer may be exposed to a claim even though laytime is indefinite. On the other hand, ordinary port congestion, bad weather, or local working conditions may remain for the Shipowner’s risk depending on the wording and circumstances.

Fast as Can (FAC) is often used for geared ships where loading or discharging depends on the ship’s own cargo gear. The idea is that cargo will be handled as fast as the ship can reasonably load or discharge, often with an additional obligation that Charterers provide or receive cargo at a certain minimum rate. If shore arrangements cannot keep up with the ship’s capacity, disputes may arise over whether Charterers failed to perform.

Deadfreight and Laytime

Deadfreight arises when the Charterer fails to provide the full cargo quantity agreed under the Charterparty, and the Shipowner is entitled to compensation for the unused cargo space. Laytime consequences can be important because the ship may spend less time loading than she would have spent if the full cargo had been supplied.

Under English law, where deadfreight is claimed, laytime is normally calculated on the cargo actually loaded, not on the cargo that should have been loaded. However, the Shipowner may have to give credit for any laytime saved as a result of not loading the missing cargo. This prevents the Shipowner from recovering deadfreight while also retaining the full time benefit of a smaller cargo operation.

For example, if the Charterparty cargo is 100,000 metric tonnes, the loading rate is 20,000 metric tonnes per day, and only 90,000 metric tonnes is supplied, the actual laytime based on cargo loaded is 4.5 days. If the full cargo had been loaded, the laytime would have been 5 days. The half day saved may need to be credited against the deadfreight position, depending on the contract and governing law.

Under American law, the treatment may be more direct, with laytime calculated by taking into account the cargo actually loaded plus the tonnage equivalent of the deadfreight paid. Because the legal approach can differ, parties should be cautious when applying general statements without checking the governing law of the Charterparty.

Laytime Commencement

For Laytime Commencement, three conditions normally need to be satisfied:

1. The ship must be an Arrived Ship.
2. The ship must be Ready to load or discharge.
3. The ship must comply with relevant Charterparty Commitments, including NOR requirements and formalities.

Ship Must Be Arrived

A ship cannot usually start laytime until she has arrived at the contractual destination in the laytime sense. The answer depends on whether the Charterparty is a port charter, berth charter, or contains special wording that permits NOR from a waiting place, anchorage, roads, or other location. The distinction can be critical where the berth is unavailable and the ship waits outside the berth or outside the port.

In a berth charter, the ship may not be arrived until she reaches the named berth, unless the Charterparty contains wording such as WIBON or another clause allowing NOR before berthing. In a port charter, the ship may be arrived when she reaches the port or a normal waiting place within the port area, provided she is at the immediate and effective disposition of the Charterer. The exact result may depend on the Charterparty wording and the facts.

The Ship Master or Ship Agent should tender NOR (Notice of Readiness) as soon as the Charterparty permits. NOR may sometimes be given orally, but written NOR is much safer and is the usual practice. The recipient should be asked to accept, sign, date, and time the NOR. If the recipient refuses to accept NOR, the tender should still be recorded and evidence preserved.

Ship Must Be Ready

The ship must also be physically and legally ready for cargo operations. At a loading port, the holds must normally be clean, dry, accessible, and suitable for the nominated cargo. If the Charterparty requires hold inspection by surveyors, grain authorities, shippers, receivers, or other parties, the inspection result may affect NOR validity. At a discharge port, the ship must be ready to discharge the cargo safely and in accordance with the contract.

Readiness includes more than willingness. The ship must be actually able to perform the cargo operation. If cargo holds are unclean, hatch covers cannot be opened, cargo gear is defective where ship’s gear is required, documents are missing, or the ship is not legally cleared where clearance is a condition, NOR may be invalid. An invalid NOR can have serious consequences because laytime may not begin until a valid NOR is tendered or until cargo operations commence under principles recognised by the contract or law.

Ship Must Accomplish Charterparty Commitments

The Charterparty may require the ship to obtain Free Pratique, customs clearance, immigration clearance, or other formalities before NOR is valid or before laytime starts. Some Charterparties soften this by adding clauses such as WIFPON (Whether In Free Pratique Or Not) and WCCON (Whether Customs Cleared Or Not). These clauses may allow NOR to be tendered before formal clearance is completed, provided the ship is otherwise ready and no real impediment exists.

Where berths are congested, the Charterparty may allow NOR from a normal waiting place through wording such as WIBON (Whether In Berth Or Not), WIPON (Whether In Port Or Not), WIFPON, and WCCON. Such clauses are intended to reduce the Shipowner’s waiting risk. However, they do not always cure every defect in readiness. The ship must still satisfy the contractual and legal requirements applicable to the particular clause.

Turn Time (TT)

Turn Time (TT) is a waiting period used in some ports or trades where ships load or discharge in turn. During turn time, laytime may not count, or may count only after a specified period has expired. For example, a Charterparty may provide for 24 hours or 48 hours turn time. If cargo operations begin earlier, the effect depends on whether the clause includes terms such as “even if used” or similar wording.

Turn time can shift risk significantly. Where turn time is unlimited, the Shipowner may carry the risk of long delay while the ship waits her turn. Where turn time is limited, laytime may begin after the stated period even if the ship has not yet berthed. Charterers may try to negotiate turn time clauses in favourable markets, but Shipowners should be cautious where no real port custom supports the clause.

Ship Arrival Before Laydays

Laydays define the earliest period in which the Charterer must provide cargo. If the ship arrives within the agreed laydays and before the cancelling date, the Charterer is normally obliged to provide cargo according to the Charterparty. If the ship arrives before laydays, the Charterer is usually not obliged to load before the first layday unless the Charterparty says otherwise.

Even when the ship arrives early, the Shipowner should normally tender NOR at the earliest permissible moment. The Charterparty may determine whether the NOR is effective immediately, whether it becomes effective at the start of laydays, or whether it cannot be tendered before laydays. This can make a significant difference. If NOR is tendered early and is effective to start time at the first moment of laydays, laytime may begin earlier than the Charterer expected.

Charterers sometimes protect themselves by adding a clause stating that NOR cannot be tendered before laydays, or that laytime cannot commence before a stated time on the first layday. Shipowners may resist such wording because early arrival should not necessarily leave the ship waiting without any time consequence once the laydays begin.

4- Establish the Laytime Commencement

After arrival, readiness, and contractual formalities are satisfied, laytime starts according to the Charterparty. Some clauses provide that time starts at 08:00 on the next working day if NOR is tendered during office hours. Others provide that time starts 6, 12, or 24 hours after NOR tendering or acceptance. Some clauses start laytime immediately if cargo operations begin. Others contain “unless sooner commenced,” “even if used,” or “whether in berth or not” wording.

The time between NOR tendering and laytime commencement may be called notice time. Notice time can be commercially important. If cargo operations begin during notice time, whether that period counts depends on the contract wording. If the Charterparty says “unless sooner commenced,” time may begin when cargo work starts. If it says “even if used,” time may count even though the period would otherwise be excluded. If it says “even if used” in an exception clause, time may count during a period that otherwise would not count.

It is essential to remember that actual cargo work and laytime counting are not always the same. A ship may be working while laytime is not counting because of notice time, weekend exceptions, holidays, turn time, weather clauses, or other agreed exclusions. Conversely, laytime may count while the ship is waiting at anchorage if the Charterparty permits NOR and the relevant conditions have been met.

5- Allow for Laytime Interruptions

Once laytime has started, it generally continues until cargo operations are completed or the allowed laytime expires, unless the Charterparty provides for interruptions or exceptions. The most common causes of interruption are:

1. Weekends and holidays
2. Shifting between berths
3. Strikes
4. Ship gear breakdowns
5. Bad weather

5a- Weekends and Holidays

Weekends and holidays count or do not count according to the Charterparty. If Sundays and holidays are excluded, the term SHEX may be used. If Saturdays, Sundays, and holidays are excluded, the term SSHEX may be used. If Sundays and holidays are included, the term SHINC may be used. In Muslim countries, Friday-based expressions such as FHEX or FHINC may be relevant.

The Charterparty should identify not only which days are excluded but also the exact start and end times of the exclusion. For example, laytime may stop at 17:00 or 18:00 on the day before a holiday and resume at 07:00 or 08:00 on the next working day. If no times are stated, disputes may arise over whether the exclusion begins at midnight, at the end of working hours, or according to local custom.

If cargo is worked during an excepted period, the wording becomes critical. “Unless used,” “even if used,” “actual time used to count,” and “half time used to count” all produce different results. A clause saying “Sundays and holidays excepted” may not count work performed during those periods unless the contract provides that used time counts. A clause saying “SHEX EIU” may prevent time from counting even if cargo work is actually performed.

5b- Shifting Between Berths

Many Charterparties permit loading or discharging at more than one berth or anchorage. If the Charterparty allows more than one berth, the parties should decide who bears the time and cost of shifting. In the absence of clear wording, time spent shifting between authorised berths may often be for the Shipowner’s account, particularly where the agreed port operation requires movement within the port.

If the Charterer orders more berths than the Charterparty permits, or requires additional shifting beyond the agreed arrangement, the time and cost may be for the Charterer’s account. Pilotage, towage, mooring, unmooring, agency, and delay should be considered. Clear wording avoids disputes where port operations involve multiple berths, anchorages, lighterage points, or shifting from anchorage to berth.

5c- Strikes

Strike clauses usually allocate delay caused by labour disputes, port strikes, terminal strikes, transport strikes, or similar industrial action. Many Charterparties provide that time lost due to shore strikes does not count as laytime. However, the exact wording must be read carefully. A strike by the ship’s crew, a strike by shore workers, a strike affecting cargo availability, and a strike affecting transport may not be treated the same way.

Strike clauses may also distinguish between laytime and demurrage. A strike may interrupt laytime before demurrage has begun but may not interrupt time once the ship is on demurrage unless the clause expressly says so. This is another example of why general assumptions are dangerous in laytime work.

5d- Ship Gear Breakdowns

If the Charterparty requires the use of ship’s gear and that gear breaks down, laytime may be interrupted for the period of lost working time. If only one crane out of four fails, the time may need to be apportioned. For example, if one crane out of four is unavailable, time may continue to count at 75%, assuming all four cranes would otherwise have been used equally and no other factor changes the calculation.

Shore equipment breakdowns require separate analysis. Some Charterparties exclude time lost through shore machinery breakdowns beyond the Charterer’s control. Under such wording, a shore crane breakdown may interrupt laytime if the Charterer does not own or control the crane and the breakdown is genuinely beyond the Charterer’s control. Different legal systems may approach the issue differently, and many modern forms have revised older wording to reduce uncertainty.

5e- Bad Weather

Weather clauses are among the most common causes of laytime disputes. Traditional expressions include Weather Working Days (WWD) and Days, Weather Permitting (DWP). Historically, some traders treated these expressions as having different effects, with WWD often seen as more favourable to Charterers and DWP as more favourable to Shipowners. Modern interpretation, especially under English law, has reduced much of that distinction where the wording is similar.

The key question is whether the weather prevents or would have prevented cargo operations. If the ship is at berth and rain stops loading grain, the interruption is obvious. More difficult questions arise where the ship is waiting for berth, where no work was planned, where cargo operations were not scheduled during that period, or where the wording refers to a working day rather than a day of 24 consecutive hours.

The phrase days of 24 consecutive hours is very important. Where laytime is expressed as days of 24 consecutive hours, time runs continuously unless interrupted by an agreed exception. This means that the ordinary working hours of the port do not necessarily control the calculation. The parties have agreed to measure laytime as a continuous 24-hour period, subject to the stated exceptions.

If the word “consecutive” is missing, or if the clause refers only to weather working days without further definition, the calculation may become more complicated. It may be necessary to examine the normal working hours of the port and apportion weather-affected periods against a 24-hour day. This can produce different results and should be avoided by clear drafting.

6- Establish the Laytime Cessation

Laytime Cessation usually occurs when cargo operations are completed. At the loading port, this may be the time loading is completed. At the discharging port, it may be the time discharge is completed. However, completion can become disputed where trimming, lashing, securing, sampling, draft survey, weighing, documentation, or cleaning continues after the main cargo movement has finished.

In dry cargo trades, trimming, lashing, and securing may be part of the cargo operation. If the cargo is loaded but still requires securing before the ship can safely sail, the time may be included in laytime unless the contract provides otherwise. For cargoes such as steel, timber, project cargo, vehicles, or heavy units, securing work can be commercially significant.

Draft surveys are also common sources of debate. Reading drafts may be necessary to determine bill of lading quantity, especially for bulk cargoes. The time used for draft surveys is often short, but bad weather, swell, poor visibility, darkness, port restrictions, or surveyor delay may extend it. If the Charterparty is silent, the parties may disagree over whether draft survey time counts as laytime. A well-drafted Charterparty should address this issue if draft survey time is expected to be material.

7- Calculate the Demurrage or Despatch Money

After the allowed laytime has been established and all counting and non-counting periods have been applied, the final balance can be calculated. The result may be:

• Demurrage payable to the Shipowner or Ship Operator;
• Despatch Money payable to the Charterer;
• no balance payable because laytime used equals laytime allowed;
• in special cases, Damages for Detention.

What is Time Sheet (TS)?

A Time Sheet (TS) is the working document used to calculate laytime. It takes the chronological events from the Statement of Facts (SOF) and applies the relevant Charterparty clauses to decide which periods count and which periods do not count. The Time Sheet then shows whether the ship has earned demurrage or whether the Charterer has earned despatch.

The Time Sheet should be transparent. It should show arrival, NOR tendering, NOR acceptance, commencement of laytime, cargo operation periods, stoppages, deductions, exceptions, completion time, and final calculation. Where a period is deducted, the legal basis should be clear. Where a period counts despite apparent interruption, the reason should also be clear. A well-prepared Time Sheet reduces argument because the parties can see how the conclusion was reached.

7a- Damages for Detention

Damages for Detention may arise where the Charterer delays the ship in breach of contract and the agreed demurrage regime does not cover the delay, or where a separate detention claim is legally available. Unlike demurrage, detention usually requires proof of actual loss. This may include evidence of lost employment, market rate, daily running cost, bunker consumption, port expenses, loss of a following fixture, or other financial consequences.

Because detention claims can be legally and evidentially demanding, many parties prefer a clear demurrage arrangement that continues until cargo operations are completed. Detention remains important, but it is generally less convenient than demurrage because it does not provide the same pre-agreed calculation mechanism.

7b- Demurrage

Demurrage is payable when all allowed laytime has been used and cargo operations are still not complete. It is normally stated as a daily rate and payable pro rata for part of a day. Occasionally, demurrage may be described by reference to tonnage, but the parties should define clearly whether the tonnage is cargo tonnage, deadweight, registered tonnage, or another measure.

Address Commission and brokerage may be deductible from demurrage if the commission clause says so. The parties should not assume that commission is automatically deductible unless the wording supports it. Freight, deadfreight, demurrage, and other sums may be treated differently depending on the commission clause.

Once the ship is on demurrage, time usually runs continuously until cargo operations are complete. The common phrase “Once on Demurrage, Always on Demurrage” reflects this principle. Ordinary laytime exceptions such as weekends, holidays, and bad weather normally do not stop demurrage unless the Charterparty expressly provides otherwise. However, exceptions caused by the Shipowner’s own fault, such as ship gear breakdown where ship’s gear is required, may still interrupt the running of demurrage.

7c- Despatch

Despatch Money is payable to the Charterer if the Charterparty provides for it and cargo operations finish before the allowed laytime expires. It is often agreed at half the demurrage rate, but the parties may agree another figure. Some Charterparties provide for free despatch, meaning no despatch is payable even if time is saved.

No Address Commissions (ADCOM) or Brokerages are payable on Despatch Money unless the contract clearly provides otherwise. Despatch is a reward to the Charterer for saving time. It is not freight earned by the Shipowner.

Despatch may be calculated on different bases, most commonly:

• All-Time Saved
• Laytime Saved (Working Time Saved)

Despatch on All-Time Saved

Despatch on All-Time Saved gives the Charterer credit for all calendar time saved by early completion, including periods that would not have counted as laytime if the ship had remained in port. This approach is usually more favourable to Charterers. If loading finishes before a weekend and the ship sails, the Charterer may receive despatch for the weekend time as well, depending on the wording.

For example, if a ship completes loading at noon on Friday and three working days of laytime remain, all-time saved may include the Friday afternoon, Saturday, Sunday, and the following working periods until the laytime would theoretically have expired. This may produce more despatch than a calculation based only on working time saved.

Despatch on Laytime Saved (Working Time Saved)

Laytime Saved (Working Time Saved) gives the Charterer credit only for the laytime that would actually have counted if the ship had remained in port. Excluded periods such as weekends, holidays, or bad weather may not be included. This approach is usually more favourable to Shipowners because it mirrors the laytime counting rules more closely.

Where laytime is described as days of 24 consecutive hours, working time saved and laytime saved may produce the same practical result, subject to exceptions. Where laytime depends on port working hours or weather working days without 24 consecutive hour wording, the calculation may require apportionment.

All-Time Saved Vs Laytime Saved (Working Time Saved)

The debate between All-Time Saved Vs Laytime Saved (Working Time Saved) reflects a commercial difference between Shipowners and Charterers. Charterers argue that early completion releases the ship earlier in real time, so all saved time benefits the Shipowner. Shipowners argue that if laytime would not have counted during certain periods, despatch should not be paid for those periods. The Charterparty must decide the issue. If the wording is unclear, disputes are likely.

Despatch Money in Bulk Sugar Trades

Despatch Money in Bulk Sugar Trades can be commercially significant because sugar trades may allow more laytime than the cargo operation usually needs. If despatch is payable, the Shipowner should include likely despatch exposure in the voyage estimate. A freight rate that appears attractive may become less profitable if large despatch payments are expected.

7d- Averaging Laytime

Laytime may be calculated separately at loading and discharge, or the two ends may be connected through reversible or average laytime wording. The main categories are:

• Non-Reversible (Normal) Laytime
• Reversible Laytime
• Average Laytime

Non-Reversible (Normal) Laytime

Non-Reversible (Normal) Laytime applies where loading and discharging laytime are calculated separately. If no special wording is used, this is often the natural approach. Demurrage or despatch at the loading port may be calculated independently from demurrage or despatch at the discharge port. It may even be possible to settle the loading port account before the ship reaches the discharge port.

Reversible Laytime

Reversible Laytime allows time saved at one end to be used at the other end. The laytime allowances for loading and discharging are treated together. This may be expressed as “all purposes,” “total days,” or by a clause giving the Charterer the option to reverse laytime. Reversible laytime can benefit Charterers where loading is quick but discharge is slow, or vice versa.

Average Laytime

Average Laytime involves separate calculations for loading and discharge, followed by a final netting of the results. For example, demurrage at one port may be offset against despatch at the other. However, averaging does not always produce the same result as reversible laytime because demurrage and despatch rates may differ, and the timing of the calculation may affect the outcome.

Reversible Laytime Vs Average Laytime

Reversible Laytime Vs Average Laytime can produce different financial results from the same facts. Reversible laytime treats the allowed time as a combined pool. Average laytime compares separate results and then nets the consequences. Non-reversible laytime keeps the two ends separate. Parties should use the exact system they intend and avoid assuming that all three methods are commercially equivalent.

VOYLAY Rules 1993

VOYLAY Rules 1993 provide a set of laytime definitions intended to reduce uncertainty in Voyage Charterparty interpretation. Laytime wording is often short, abbreviated, and heavily compressed. Expressions such as port, berth, arrived ship, weather working day, running day, Notice of Readiness, demurrage, despatch, reversible laytime, and laytime saved may appear simple, but each can carry a technical meaning. The purpose of a recognised definition set is to help parties use these expressions with greater consistency.

VOYLAY Rules 1993 are useful because laytime disputes often arise from the same recurring problems. Parties may disagree on whether the ship was an arrived ship, whether NOR was valid, whether weather stopped the laytime clock, whether a holiday exception applies, whether time on demurrage is interrupted, or whether despatch should be calculated on all time saved or only working time saved. A set of standard definitions can reduce argument by giving the parties a common vocabulary.

However, VOYLAY Rules 1993 do not automatically apply to every Charterparty. They apply only if the parties incorporate them or if the contract wording otherwise makes them relevant. A Charterparty should state clearly that the laytime definitions are to apply, and it should also state whether the definitions are subject to the express clauses in the Charterparty. Express wording in the Charterparty will usually prevail over general definitions if the two cannot operate together.

A major practical value of VOYLAY Rules 1993 is the attention given to the distinction between a port charter and a berth charter. If the Charterparty names only a port, the ship may become an arrived ship when she reaches the port or a recognised waiting place, depending on the wording and facts. If the Charterparty names a specific berth, the ship may not become an arrived ship until she reaches that berth, unless protective wording such as WIBON, WIPON, or similar clauses changes the result. This distinction is critical because it decides which party bears the risk of berth congestion.

Laytime Definitions for Charter Parties 2013

Laytime Definitions for Charter Parties 2013 were introduced to modernise and replace the earlier laytime definition framework used in many Voyage Charterparty negotiations. The 2013 definitions kept the same practical objective: to create clearer, more consistent meanings for common laytime expressions. However, the later definitions were drafted with more modern chartering practice in mind and with greater attention to wording used in contemporary fixtures, electronic communication, revised standard forms, and recurring disputes that had developed after the earlier definition set.

The 2013 definitions are not a complete Charterparty and do not create a full laytime regime by themselves. They are interpretative definitions. They explain the meaning of common expressions where the parties choose to incorporate them into their Charterparty. Therefore, the parties must still negotiate the commercial bargain: the cargo quantity, loading rate, discharging rate, laytime allowance, demurrage rate, despatch rate, NOR procedure, excluded periods, strike clauses, weather clauses, shifting clauses, and all other operational terms.

The 2013 definitions are particularly useful because modern voyage chartering frequently uses short recap wording. A recap may contain compressed terms such as “10,000 MT PWWD SHEX EIU,” “NOR WIBON WIPON WCCON WIFPON,” “demurrage pro rata,” or “despatch half demurrage on laytime saved.” Without agreed definitions, parties may later dispute what these expressions mean. The 2013 definitions assist by giving a more structured interpretation to commonly used laytime language.

Like the earlier definitions, Laytime Definitions for Charter Parties 2013 do not override clear express wording. If the Charterparty contains a specific clause that differs from the standard definition, the specific clause will normally govern the relationship between the parties. The definitions should therefore be treated as a supporting tool, not as a replacement for careful drafting. If parties intend a special arrangement, they should state it directly in the Charterparty.

The 2013 definitions also reflect the need for more precise treatment of when a ship is ready, when a ship has arrived, when NOR may be tendered, and how time should count. These issues are central because laytime cannot normally start unless the ship is an arrived ship, is ready to load or discharge, and has tendered NOR in accordance with the Charterparty. The later definitions help clarify the language used around these conditions and reduce the risk that parties apply outdated or inconsistent interpretations.

In practical laytime work, the 2013 definitions can be helpful for Shipowners, Charterers, Shipbrokers, Ship Operators, Ship Agents, and laytime analysts. They make it easier to prepare a Time Sheet because the analyst can connect the facts in the Statement of Facts with a recognised definition of the relevant term. For example, if the issue concerns weather, the analyst can identify whether the relevant wording refers to weather working time, weather interruption, or a period during which cargo operations would have been prevented. If the issue concerns despatch, the analyst can check whether the Charterparty refers to all time saved or laytime saved.

The 2013 definitions are also useful in preventing disputes at the fixture stage. If both parties agree that the definitions apply, they reduce the chance that each side will later use its own interpretation of a familiar phrase. This is especially valuable in international trades where Shipowners, Charterers, brokers, agents, terminals, and lawyers may come from different legal and commercial backgrounds. A shared definition set helps bring consistency to cross-border shipping contracts.

Differences Between VOYLAY Rules 1993 and Laytime Definitions for Charter Parties 2013

The main difference between VOYLAY Rules 1993 and Laytime Definitions for Charter Parties 2013 is that the 2013 definitions represent a later and more updated approach to laytime terminology. The earlier rules were prepared for the market conditions and drafting style of their time. The 2013 definitions were designed to reflect more recent chartering language, modern fixture practice, and the experience gained from disputes that arose after the earlier rules had been used.

1- Wider Modern Drafting Approach: The 2013 definitions use a more modern drafting style. They aim to make definitions clearer and more practical for current Charterparty wording. Voyage chartering practice had developed significantly after 1993, especially through faster communications, more detailed recaps, increased use of rider clauses, and more standardised laytime calculation software. The later definitions are better suited to this environment.

2- More Practical Connection with Current Charterparty Terms: The 1993 rules remain useful for understanding traditional laytime expressions, but the 2013 definitions are generally more aligned with the way modern Shipbrokers and operators draft fixture recaps. Modern fixtures often combine several abbreviations in one clause. The 2013 definitions help interpret these expressions in a more organised way.

3- Clearer Treatment of Arrival and Readiness Concepts: Both definition sets deal with arrival and readiness, but the 2013 version gives a more refined framework for the concepts that determine when laytime can begin. This is important because disputes over arrived ship status, berth availability, port limits, waiting places, and readiness continue to be among the most common causes of laytime disagreement.

4- Better Fit for Contemporary NOR Practice: Notice of Readiness practice has become more detailed, particularly where NOR is tendered by email, through agents, from anchorage, from a waiting place, or before free pratique or customs clearance. The 2013 definitions are better suited to modern NOR practice because they are drafted against a more contemporary operating background. However, the Charterparty should still state exactly where, when, how, and to whom NOR may be tendered.

5- Updated Treatment of Time-Counting Expressions: The 2013 definitions provide a more current approach to expressions involving running days, working days, weather working days, days of 24 consecutive hours, holidays, and interruptions. This matters because laytime calculations are often decided by the meaning of a short time-counting phrase. The more precise the definition, the less room there is for disagreement.

6- More Useful for Modern Laytime Software and Time Sheets: Laytime calculation is now commonly performed with digital tools. The 2013 definitions are easier to apply in a structured calculation environment because they support a clearer connection between the contract term and the calculation step. Nevertheless, software cannot decide legal interpretation by itself. The user must still understand the Charterparty and apply the definitions correctly.

7- Earlier Rules Remain Relevant but Should Not Be Treated as Current Default Wording: The 1993 rules remain commercially useful where they are expressly incorporated, where an older Charterparty uses them, or where the parties have chosen them deliberately. However, when drafting a new Charterparty, the 2013 definitions are generally the better starting point because they reflect the later development of laytime terminology. Parties should avoid mixing both sets unless they clearly state which one applies.

8- Neither Set Applies Automatically: A common mistake is to assume that standard laytime definitions apply automatically because the wording is familiar. Neither the 1993 rules nor the 2013 definitions automatically govern a Charterparty unless incorporated or made applicable by agreement. A short incorporation clause should be inserted if the parties want either definition set to apply.

9- Express Charterparty Wording Still Prevails: Both systems are interpretative aids. They do not replace the negotiated Charterparty. If the parties agree a special provision on NOR, weather, holidays, demurrage, despatch, shifting, strike delay, or berth congestion, that express provision must be given effect. The definitions are there to clarify standard expressions, not to rewrite the bargain.

10- Greater Certainty in New Fixtures: The most practical difference is commercial certainty. In new fixtures, using the 2013 definitions can help reduce old wording disputes and align the contract with more modern practice. This does not mean that every dispute will disappear. It means that the parties begin with a clearer shared vocabulary and a better structure for interpreting the laytime clause.

When choosing between the two, the safest drafting approach is to use one definition set only and state it expressly. If the Charterparty is based on an older form or a trade that still uses traditional wording, the parties may decide to use the 1993 rules. If the fixture is being newly negotiated and the parties want more current terminology, the 2013 definitions will usually be the more practical choice. In either case, the incorporation clause should be clear, and any special agreement should be written directly into the Charterparty.

The practical conclusion is simple: VOYLAY Rules 1993 are important historically and remain useful where incorporated, but Laytime Definitions for Charter Parties 2013 provide a more modern and commercially updated framework for current Voyage Charterparty laytime wording. Parties should not rely on assumed market understanding. They should choose the definition set deliberately, incorporate it expressly, and make sure the rest of the Charterparty does not contradict it.

Practical Laytime Drafting Points

Good laytime drafting reduces disputes. The Charterparty should state:

• the permitted laytime or calculation method;
• whether the allowance is separate, reversible, average, or all purposes;
• the exact loading and discharging rates;
• whether rates apply per day, per weather working day, per hatch, or per workable hatch;
• which weekends and holidays are excluded or included;
• whether time used during excepted periods counts;
• when NOR may be tendered;
• whether WIBON, WIPON, WIFPON, or WCCON applies;
• when laytime starts after NOR;
• whether draft survey, trimming, lashing, and securing time counts;
• how shifting time and shifting expenses are treated;
• how strikes, weather, and equipment breakdowns affect laytime;
• the demurrage rate and whether it is pro rata;
• whether despatch is payable and on what basis;
• whether commissions are deductible from demurrage.

Parties often focus heavily on freight and cargo quantity but leave laytime wording to old clauses. This can be costly. A freight rate is only part of the voyage economics. A poor laytime clause can transfer substantial time risk to the wrong party.

Conclusion

Laytime is the contractually allowed time for loading and/or discharging a Voyage Chartered Ship. It is a central mechanism in voyage chartering because it allocates port time risk and determines whether Demurrage or Despatch Money becomes payable. The calculation depends on the Charterparty wording, Statement of Facts, Notice of Readiness, arrived ship status, readiness, formalities, interruptions, completion time, and the applicable legal interpretation.

A proper Laytime Calculation begins with the Charterparty, not with a spreadsheet. The Statement of Facts provides the chronology, but the contract decides the legal effect of each event. Weather, holidays, strikes, berth congestion, shifting, cargo gear breakdowns, draft surveys, and early completion all require careful analysis.

For Shipowners, Charterers, Shipbrokers, Ship Agents, and Ship Operators, laytime knowledge is essential. It protects voyage profitability, reduces disputes, improves negotiation, and ensures that port time is valued correctly. In commercial shipping, laytime is not merely time spent in port. It is a negotiated economic asset, and every hour can have a price.

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