Laytime and demurrage

Laytime is the amount of time the charterer is allowed for loading or discharging the cargo, agreed in the charterparty. If the operation takes longer, the charterer pays the owner demurrage — agreed damages for detaining the ship. If it's faster, the owner may pay the charterer despatch (often at half the demurrage rate). This is one of the most common ways money quietly leaks out of — or into — a trade.

How laytime works, step by step

1. 1The vessel arrives and tenders a Notice of Readiness (NOR) — a formal statement that it has arrived and is ready to work.
2. 2After any agreed 'turn time' (e.g. 6 hours), laytime starts counting.
3. 3Laytime counts down according to the agreed terms — only certain hours may count (see qualifiers below).
4. 4When cargo operations finish, you compare time used against laytime allowed.
5. 5Used more than allowed → demurrage. Used less → despatch (if the charter provides it).

NOR

Notice of Readiness — triggers the laytime clock once accepted.

Laytime

Agreed time allowed for cargo operations, e.g. '72 running hours' or via a load/discharge rate.

Demurrage

Per-day (pro-rata) amount the charterer pays the owner for exceeding laytime.

Despatch

Reward the owner pays the charterer for finishing early, often half the demurrage rate.

SHEX / SHINC

Sundays and Holidays EXcluded / INCluded — whether those hours count as laytime.

WWD

Weather Working Day — a day's laytime only counts if weather permits work.