Notice of Readiness (NOR) — What It Means in Shipping | Maritime Encyclopedia

Notice of Readiness: What It Means

The Notice of Readiness (NOR) is the formal trigger point in commercial shipping that starts the cargo clock.

When a ship arrives at port with cargo to load or discharge, the Master sends the NOR to the charterer or agent. This document says, in effect: “We are here, we are ready, your time starts now.”

Why NOR Matters Commercially

Charterparties (the commercial agreements between shipowners and charterers) contain laytime — the maximum time allowed for loading or discharging without additional cost.

If operations take longer than laytime: Charterer pays demurrage (daily penalty) to the shipowner
If operations finish faster than laytime: Shipowner may pay dispatch to the charterer (half the demurrage rate, incentive for fast work)

Demurrage at $15,000–$50,000 per day on bulk carriers and tankers means a disputed or late NOR can mean millions of dollars in commercial disputes.

What Makes a Valid NOR

For NOR to be valid:

Ship must have arrived at the contractual destination (port or berth)
Ship must be in all respects ready — cargo spaces clean and ready, all certificates valid, all equipment operational
NOR must be tendered in the manner specified in the charterparty (email, letter, TELEX)
Tendered within the laydays specified (LAYCAN — laydays/cancellation date)

Laytime Calculation Example

Charterparty terms: 72 running hours laytime, commences 6 hours after NOR accepted

Ship arrives and tenders NOR at 0600 Monday
Laytime starts 1200 Monday (6 hours later)
72 hours later = 1200 Thursday
If discharge finishes 1800 Thursday → 6 hours demurrage owed

6 hours × $15,000/24 = $3,750 demurrage

Practical Tips for Officers

Tender NOR as soon as ship is ready — every hour of delay costs money (and possibly demurrage owed to you)
Check charterparty terms first — some require NOR only at berth, some at pilot station, some at anchorage
Document ship’s condition — if NOR validity is disputed, the log must show the ship WAS ready when NOR was tendered
Keep copies — NOR with timestamps is a legal document

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Frequently Asked Questions

What happens after a Notice of Readiness is tendered?

After NOR is tendered and accepted, the laytime clock starts running (immediately or after a specified notice time as per the charterparty). The charterer then has the agreed number of laytime hours or days to complete loading or discharging. Any excess time is demurrage; completion before allowed time may earn dispatch.

What is laytime and how does it relate to NOR?

Laytime is the agreed period allowed for loading or discharging cargo, as per the charterparty. It starts running from when NOR is tendered (and accepted), often with a notice time (e.g., 6 hours after NOR — meaning laytime starts 6 hours after NOR is tendered). Accurate NOR timing is critical commercially.

What is demurrage in shipping?

Demurrage is the penalty paid by the charterer to the shipowner when cargo operations exceed the allowed laytime. It is typically expressed as a fixed daily rate in the charterparty (e.g., $15,000 per day pro-rata). It compensates the shipowner for the delay in using their vessel.

Who is responsible for tendering NOR correctly?

The Master is responsible for tendering NOR correctly and on time. A late NOR or incorrect NOR (tendered before ship is actually ready) can cause significant commercial disputes. The exact wording, timing, and delivery method (email, letter, radio) are governed by the specific charterparty terms.