Laytime

Admiralty law
History
Codex Hammurabi Corpus Juris Civilis Digesta Ordinamenta et consuetudo maris Amalfian Laws Hanseatic League
Features
Maritime transport Shipping/Ferry Cargo Freight Passenger Merchant marine Cargo ship Passenger ship Owner Mortgage Registration Marine insurance Act of God Cargo Collision Construction General average Seaworthiness Total loss
Contract of carriage/Charterparty
Affreightment Agency Bill of lading Bill of parcel Brokerage Chartering Consignment Demurrage Force majeure Invoice Commercial Pro forma Laytime Lien Maritime Manifest Proof of delivery Salvage Terms International Waybill
Parties
Agent Factor Freight forwarder Principal Carrier Captain Charterer Freight company Manager Consignee Stevedore Consignor
Judiciary
Admiralty court Vice admiralty court
International conventions
Hague-Visby Rules Hamburg Rules Rotterdam Rules Maritime Labour Convention International Convention on Salvage United Nations Convention on the Law of the Sea (UNCLOS) SOLAS Convention Ballast Water Management Convention International Regulations for Preventing Collisions at Sea
International organisations
International Maritime Organization London Maritime Arbitrators Association
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In commercial shipping, laytime is the amount of time allowed^[1] in a voyage charter for the loading and unloading of cargo.^[2][3]

Under a voyage charter or time charter, the shipowner is responsible for operating the vessel, and the master and crew are the employees of the shipowner, not the charterer. However, once the vessel has "arrived" at a port the charterer then assumes responsibility for the loading and unloading of cargo, having a period of laytime in which to carry this out. (Note that the actual loading may be performed by a third-party stevedore).

The moment when laytime commences is determined by a Notice of Readiness (or "NOR"), which the master or agent of the ship must give to the port when the ship has arrived at the port of loading or discharge. The charterparty contract determines the precise meaning of "arrival". Usually, "arrival" is when the ship has arrived at the port and is ready in all respects to load or discharge; but it may be, say, when the ship has passed buoy #2 in the approach channel, or once the vessel has pass through lock gates.^[4]

If the charterer does not comply with the NOR, the carrier may cancel the contract and seek damages.^[5] If the charterer's delay means that laytime is exceeded, a predetermined penalty (i.e. liquidated damages) called "demurrage" is incurred.^[6][7] If the whole period of laytime is not needed, a refund called "despatch" may be payable by the shipowner to the charterer. Despatch is normally paid at 50% of the demurrage rate, but this depends on the terms of the charterparty. The ship may thus be able to leave port early. Despatch does not normally apply to tanker charters.^{[citation needed]}

"Laytime" should not be confused with "Laydays" because "Laydays" is the period within which the Shipowner has to make the vessel "ready" to the Charterer at the place and time agreed in the charter party. "Cancelling Date" is the last day of "Laydays" and acts as a deadline to tender "Notice of Readiness". A ship (vessel) failing to become an "Arrived Ship" by tendering a valid Notice of Readiness, bears the risk of being refused/cancelled by Charterers as per Charter-Party provisions (Please see "Cancellation Clause")

References[]

External links[]

Look up laytime in Wiktionary, the free dictionary.

Further reading[]

• Todd, Paul (1988) Contracts for the carriage of Goods by Sea, page 88, BSP Professional Books, Oxford, U.K ISBN