Laytime https://fortiorlaw.com/news/laytime-and-demurrage/ refers to the period allowed for a vessel to load and discharge cargo, whereas demurrage is the compensation paid for not completing these operations within the allocated laytime. The calculation of laytime can be broken down into three stages:
- Establishing the commencement of laytime.
- Determining the duration of laytime.
- Accounting for interruptions to laytime.
When Does Laytime Commence?
Laytime begins once a valid Notice of Readiness (NOR) has been tendered. A NOR is considered valid if the vessel:
- Has arrived at the agreed destination (which could be a port, berth, or dock, depending on the type of charterparty) within the agreed laydays, and
- Is ready for loading in all respects, both legally and physically. This means the cargo spaces are prepared for loading and discharge, the vessel is adequately equipped, and all relevant documentation is in order.
Additional Provisions in Charterparty
Charterparties may include specific clauses that define the vessel as an "arrived ship" under various conditions:
- WIPON (Whether In Port Or Not): The vessel is considered to have arrived regardless of whether it is in the port.
- WIBON (Whether In Berth Or Not): The vessel is considered to have arrived regardless of whether it is in the berth.
- WICCON (Whether Customs Cleared Or Not): The vessel is considered to have arrived regardless of whether it has been cleared by customs.
- WIFPON (Whether In Free Pratique Or Not): The vessel is considered to have arrived regardless of whether it has been granted free pratique.
