Laytime

Laytime is the period allocated under a charter party during which a ship’s master may load or discharge cargo without incurring additional charges beyond the agreed hire. It serves as the time the charterer must complete the loading or unloading operations; if laytime is exhausted, demurrage is payable by the charterer to the shipowner, while completing operations earlier may entitle the charterer to despatch, reducing hire costs.

Commencement of laytime typically hinges on a notice of readiness (NOR) being tendered and the vessel being in berth and ready to load or discharge, as specified by the charter party. Forms vary: NOR upon arrival, NOR on berth, or NOR on readiness to load. The start may be subject to agreed exclusions or stoppages, such as weather or port constraints, and some contracts allow extended or excluded periods for certain delays.

Calculation and interruptions: Laytime is counted as running time, in days or hours, and may be fixed or variable under the charter. Non-working days, holidays, and certain port delays are often excluded unless the contract states otherwise. Stoppages caused by weather, port congestion, cargo handling difficulties, or force majeure may extend laytime or be excluded, depending on the contract. Some agreements specify weather working days or other adjustments for specific circumstances.

Relationship to other terms: Laytime is central to voyage charters and time charters. If laytime is exceeded, demurrage is due; if operations finish early, despatch may be payable. Laytime is distinct from laycan, the window during which the vessel must present for loading. The exact rules depend on the charter party terms and governing law.