Laytime
Encyclopedia
In commercial shipping
, laytime is the amount of time allowed (in hours or days) in a voyage charter for the loading and unloading of cargo. If the laytime is exceeded, demurrage
is incurred. If the whole period of laytime is not needed, despatch may be payable by the shipowner to the charterer, depending on the terms of the charter party
(despatch does not apply to tanker charters).
Laytime and Laydays are often confused as referring to the same idea. Laydays refers to the time when a ship must present itself to the charterer. If the ship arrives before the laydays specifed, the charterer does not have to take control or start loading (depending on the type of charter). If the ship arrives after the Laydays then the contract can be cancelled - hence Laydays are often presented as the term Laydays and Cancelling and can be shortened to Laycan.
The point when laytime commences is determined by a Notice of Readiness (NOR), which the master
or agent of the ship must give to the charterer when the ship has arrived at the port of loading or discharge. The NOR informs the charterer that the ship has arrived at the port and is ready in all respects to load or discharge.
Shipping
Shipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck...
, laytime is the amount of time allowed (in hours or days) in a voyage charter for the loading and unloading of cargo. If the laytime is exceeded, demurrage
Demurrage
The term demurrage originated in vessel chartering and refers to the period when the charterer remains in possession of the vessel after the period normally allowed to load and unload cargo . By extension demurrage refers to the charges that the charterer pays to the shipowner for its extra use of...
is incurred. If the whole period of laytime is not needed, despatch may be payable by the shipowner to the charterer, depending on the terms of the charter party
Charter Party
The Charter Party of Cincinnati, Ohio, United States, is a minor political party. The party is Cincinnati's third party. Members of this party are called "Charterites."-History:...
(despatch does not apply to tanker charters).
Laytime and Laydays are often confused as referring to the same idea. Laydays refers to the time when a ship must present itself to the charterer. If the ship arrives before the laydays specifed, the charterer does not have to take control or start loading (depending on the type of charter). If the ship arrives after the Laydays then the contract can be cancelled - hence Laydays are often presented as the term Laydays and Cancelling and can be shortened to Laycan.
The point when laytime commences is determined by a Notice of Readiness (NOR), which the master
Captain (nautical)
A sea captain is a licensed mariner in ultimate command of the vessel. The captain is responsible for its safe and efficient operation, including cargo operations, navigation, crew management and ensuring that the vessel complies with local and international laws, as well as company and flag...
or agent of the ship must give to the charterer when the ship has arrived at the port of loading or discharge. The NOR informs the charterer that the ship has arrived at the port and is ready in all respects to load or discharge.
External links
- Laytime-Calculation.com Software for Laytime Calculation
- Haugen Consulting LLC Consulting on Laytime Calculation
Further reading
- Todd, Paul (1988) Contracts for the carriage of Goods by Sea, page 88, BSP Professional Books, Oxford, U.K ISBN