Laytime is the amount of time a charter party allows for loading and discharging cargo, typically starting once Notice of Readiness (NOR) is accepted at the port.
How Laytime Is Calculated
Laytime terms are specified in the charter party — either as a fixed number of days/hours, or calculated based on cargo quantity and an agreed loading/discharge rate. Specific exclusions (weekends, holidays, weather delays) depend entirely on the charter party’s exact wording, commonly abbreviated with terms like SHINC (Sundays and Holidays Included) or SHEX (Sundays and Holidays Excluded).
What Happens If Laytime Is Exceeded
If cargo operations take longer than the allowed laytime, the charterer owes demurrage — a pre-agreed daily penalty rate compensating the shipowner for the ship being tied up longer than planned.
What Happens If Laytime Is Saved
Some charter parties include a dispatch clause, paying the charterer a reward (typically at half the demurrage rate) if cargo operations finish faster than the allowed laytime — an incentive for efficient port operations, though not every charter includes this provision.
Why Laytime Calculations Matter to the Master
Accurate record-keeping of exactly when operations started, any stoppages (and their cause), and completion time is essential, since these records form the basis of any laytime dispute between owner and charterer — the Statement of Facts document, carefully maintained onboard, is the primary evidence in these calculations.
Exam Relevance
Laytime calculation principles, demurrage, and dispatch are standard Ship Knowledge and commercial-operations topics in deck officer competency exams.