Laytime Explained

Laytime is the period agreed in a voyage charter during which the charterer may load and discharge the ship without paying anything extra.

How laytime is stated

Either as a fixed number of days, or as a loading and discharging rate applied to the cargo quantity, for example "5,000 tonnes per weather working day". Dividing the cargo by the rate gives the days allowed.

When it starts and stops

Laytime normally starts counting some agreed hours after the ship has given a valid notice of readiness, and stops when loading or discharging is finished. The charter party fixes these points.

Common abbreviations

WWD: weather working day, a day on which work is not stopped by weather. SHINC: Sundays and holidays included in laytime. SHEX: Sundays and holidays excluded. The charter party says which applies.

If laytime is used up

Time beyond laytime is paid as demurrage. Time saved can earn despatch. See also laycan, the dates in which the ship must be ready to load.

A worked example

A cargo of 30,000 tonnes with a loading rate of 5,000 tonnes per weather working day gives six days of laytime for loading. If the same rate applies to discharging, the charterer has six more days there. Some charters give one total of "reversible" laytime that the charterer may use for loading and discharging together, so a fast loading leaves more time for discharging.

What does not count

The charter party lists the time that is not counted as laytime, for example time lost to bad weather, or Sundays and holidays when they are excluded. Once a ship is on demurrage the rule is often "once on demurrage, always on demurrage", which means these exceptions no longer stop the time. Read this clause carefully, because it decides who pays for the delay.

Records that settle disputes

Both sides keep the statement of facts, the times of the notice of readiness, the start and end of loading and the reasons for any stop. These records are the base for any demurrage or despatch claim.

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