Laycan
Laycan is a shipping term combining laydays (the earliest date the charterer must accept the ship) and cancelling date (the latest date the charterer can cancel if the ship hasn’t arrived ready to load). It defines the window within which the ship must present its Notice of Readiness at the load port.
Answer in Brief
Laycan = Laydays (earliest) / Cancelling Date (latest)
Example: “Laycan 15/20 March” means the charterer need not accept the ship before 15 March, but if the ship hasn’t arrived ready to load by 20 March, the charterer has the option to cancel the charter.
How Laycan Works in Practice
Before laydays (too early): If the ship arrives before the first laydate, the charterer can refuse to accept NOR until the laydate. Time does not count as laytime until the laydate is reached (or the charterer agrees to start earlier).
Within laycan window: Ship arrives and presents NOR within the window. Charterer accepts. Laytime commences (per charter party terms — immediately, 6 hours after, or next working day).
After cancelling date (too late): Charterer has the option to cancel — but this is an option, not an obligation. The charterer may choose to accept the ship late if it suits their commercial interest. They cannot be forced to cancel — but they cannot be forced to proceed either.
Why Laycan Matters Operationally
For Masters and operators: The cancelling date creates operational urgency. If the ship is running late due to slow passage, port delays at previous port, or mechanical problems, the company will be in urgent communication about whether the laycan will be met.
Consequence of missing laycan: If charterer exercises the cancellation right, the shipowner loses the fixture — no freight, wasted ballast voyage costs. This is a significant commercial loss.
ETA accuracy: Masters should give accurate ETAs to agents and operators. An over-optimistic ETA that leads to a missed laycan (when an honest ETA might have allowed commercial renegotiation) is a serious operational failure.
Laycan vs NOR vs Laytime
| Term | Meaning |
|---|---|
| Laycan | The window within which ship must arrive ready |
| NOR (Notice of Readiness) | Formal notice that ship is arrived and ready to load/discharge |
| Laytime | The time allowed for cargo operations once NOR is accepted |
| Demurrage | Penalty if cargo operations exceed laytime |
Frequently Asked Questions
Q: Can laycan be extended? Yes, by mutual agreement between owner and charterer. This is negotiated commercially — often the owner offers a reduced freight rate in exchange for the charterer accepting a new laycan.
Q: What happens if the ship arrives slightly after the cancelling date? The charterer has the option to cancel but may choose not to. Many charters continue with a small delay if the commercial relationship is strong and cargo is available.
Q: Who determines if NOR is valid? The Master presents NOR. The charterer or their agent accepts or rejects it. Rejection reasons must be stated — if the ship is genuinely ready, rejected NOR can be disputed.
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