Laytime & Demurrage: 7 Traps That Turn Profit Negative

Simple Summary

NOR is your start button for laytime. If the first NOR is not valid, the clock does not run. That can flip profit to loss fast. Keep it simple: right place, truly ready, sent at the right time, to the right party with proof.

Quick test for a valid NOR

1. Place: At the spot your charter allows for NOR.
   Berth charter - usually at berth. Port charter - customary waiting place works if berth unavailable. Look for WIBON/WIPON wording.
2. Readiness: Ship is ready in fact and in law.
   Gear set, docs in order, free pratique/customs done unless clause allows before formalities.
3. Timing: After arrival and within notice hours.
   Some forms require office hours or laydays to have begun.
4. Recipient: Sent to the parties named in the charter.
   Agent and charterer by the stated method. Keep time-stamped proof.

Common ways NOR fails

• Anchorage on a berth charter without wording that allows it.
• Not truly ready - gear not set, tanks not ready, key docs missing.
• Sent before arrival limits or outside notice hours when restricted.
• Wrong recipient or wrong method - no proof of receipt.
• Free pratique/customs required but not granted and no clause allowing earlier NOR.

Simple steps on the day

1. Check charter type and special clauses - port or berth, WIBON, WIPON, WCCON, WIFPON.
2. Log arrival time and position - keep AIS or port message if allowed.
3. If any item is pending, send a protective NOR - say what is pending.
4. Send NOR to the right parties by the stated method - ask agent to confirm receipt.
5. Re-tender when pending item is cleared - keep all timestamps.

Mini timeline example

• 08:20 UTC - Anchor at customary waiting place. Berth occupied.
• 08:25 UTC - NOR sent under port charter. Agent confirms 08:27.
• 10:05 UTC - Free pratique granted. Re-tender if your form requires it.
• 14:40 UTC - Berth free. Proceed and count laytime per charter trigger.

Bottom line effect

Simple Summary

A port charter lets you start the clock at the customary waiting place inside the port if the berth is busy. A berth charter usually needs you at the named berth before time counts. Clauses like WIBON/WIPON/WCCON/WIFPON or “time lost waiting for berth counts” can relax this. If you mix these up, days at anchor may earn nothing.

Quick test (what counts where?)

1. Charter type? If it names a berth, treat it as a berth charter unless wording says otherwise. If it names a port, it’s likely a port charter.
2. Waiting place time? Port charter: time can run at the anchorage inside port limits. Berth charter: it won’t, unless your clauses allow it.
3. Do you have cushions? Look for WIBON (whether in berth or not), WIPON (whether in port or not), WCCON (customs), WIFPON (free pratique), and any “time lost waiting for berth to count.”
4. Accessibility duty? “Reachable on arrival” / “always accessible” can shift risk of congestion/obstruction to charterers for a berth charter. Check the wording.

Common pitfalls

• Assuming time counts at anchorage on a berth charter with no supportive clause.
• NOR tendered at anchorage on a berth charter → later ruled invalid; laytime never started.
• Ignoring office hours/notice hours for NOR under either form.
• Missing that “time lost waiting for berth” applies only if written (and how it’s written).
• Overlooking “reachable on arrival” obligations tied to a specific berth.

Simple steps to stay safe

1. Read the first line of the C/P laytime clause: does it name a port or a berth?
2. Scan for cushions: WIBON/WIPON/WCCON/WIFPON and “time lost waiting for berth counts.”
3. Tender NOR where it’s valid for your form (waiting place for port charter; at berth for berth charter unless clauses say otherwise).
4. Record congestion (VTS/agent notes). If berth charter, ask for written confirmation if “time lost waiting” will count.
5. Re-tender at the berth if required. Keep all timestamps.

Mini timeline examples

• Port charter: Anchor inside port limits at 09:00; valid NOR at 09:10; berth opens 18:30 → time counts from NOR subject to hours/clauses.
• Berth charter (no WIBON): Anchor 09:00; NOR at anchorage is invalid; re-tender at berth 19:00 → time starts from valid NOR at berth.
• Berth charter + “reachable on arrival”: If berth blocked by charterers’ risk issues, time may count per wording even before all gear is alongside. Check exact clause.

Bottom line effect

Simple Summary

Exceptions stop the clock only when they actually stop cargo work. Light rain under cover, a short crane pause, or a Sunday where the terminal still works will not save time unless your clause clearly says so. Record start and stop times. Split the day into working and non-working hours.

Quick test: does time stop here?

1. Is there an exception clause that fits? WWD, SHEX, strikes, breakdowns, port closure.
2. Did it actually prevent work on this ship? If gangs could work, time usually runs.
3. Was any work done anyway? If yes, time usually runs for those hours. That is the “unless used” idea.
4. Who caused the stop? Ship gear or crew issues are usually owner risk. Shore issues can be charterer risk, subject to wording.

Common pitfalls

• Counting a full day for rain when only 2 hours were lost. You must split the day.
• Claiming weather when cargo is under cover or another hold could work.
• Assuming Sundays and holidays never count under SHEX even when the terminal works.
• Treating a short crane breakdown as a full stoppage without times in the SOF.
• Mixing laytime exceptions with demurrage rules. Demurrage often has fewer exceptions.

Simple steps to stay safe

1. Write the clause on your worksheet: WWD, SHEX or SHINC, strike wording, breakdown wording.
2. On the Statement of Facts, log every start and stop with reason. Use a rain and crane stopwatch mindset.
3. Split the day into used and lost hours. Attach gang sheets and terminal notices.
4. Where possible, keep alternative work going so time keeps running.
5. If you are already on demurrage, recheck if the exception still applies under your wording.

Mini examples

• Rain 10:20 to 12:05 only: time stops 1 h 45 m if work actually stopped. The rest of the day counts.
• Sunday under SHEX but the terminal works 07:00 to 15:00: those 8 hours count.
• One crane down 14:10 to 15:00, other crane running: only 50 minutes of partial loss if it prevented full work on that hatch. Record it.
• General strike that closes the port: if gangs cannot work at all, the clock stops while the strike prevents work per clause.

Bottom line effect

Simple Summary

Moving the ship can burn your laytime if it is for the owner’s reasons. If the move is ordered by the terminal or charterers, the time can count and the costs may be theirs, but only if your charter says so. Warping a few meters along the same berth is not the same as shifting to another berth. Record who ordered the move and why.

Quick test: does the clock run while moving?

1. Who ordered it? If terminal or charterers for cargo reasons, time is more likely to count.
2. What kind of move? Shifting between berths is heavier; warping along the same berth is lighter and often counts if gangs wait on the move.
3. What does the clause say? Look for “time lost shifting to count” and who pays tugs/pilots/lines.
4. Was cargo work possible? If cargo could continue (other hold or side), keep working to keep time running.

Common pitfalls

• No clause on shifting time, so the move stops the clock and owners pay the costs by default.
• Calling a full “shift” when it was just a short warp along the same berth; losing hours that should count.
• Moving for ship reasons (gear, draft, bunkers) and trying to charge it to charterers.
• Not logging start/stop times for pilots, tugs, and lines; no proof that time was lost.
• Assuming all waiting during shift counts; many forms need explicit wording.

Simple steps to stay safe

1. Before arrival, note charter wording on shifting: time to count or not, and who pays costs.
2. When ordered to move, get it in writing: who ordered, reason, and ETB/ETS after the move.
3. On the Statement of Facts, log times for stop work, pilot on board, let go, all fast, gangs resume.
4. Keep working any hold that can stay safe while warping; partial work supports time counting.
5. If the move is for owner’s reasons, expect time and costs to be on owners unless the charter says otherwise.

Mini examples

• Terminal orders shift from Berth A to Berth B to load a second parcel. Clause says “time lost shifting to count.” Laytime counts; charterers pay tug/pilot if clause says so.
• Master warps 30 meters to reach next hatch. Gangs stand by 20 minutes. With “time lost shifting to count,” those 20 minutes count.
• Shift for ship gear repair. Owner’s convenience. Time usually stops and owners pay the move.
• Draft restriction forces move to deeper berth to complete load. If due to charterers’ nominated cargo and clause supports it, time can count during the move.

Bottom line effect

Simple Summary

Most charters set strict clocks: a short window to give notice< of a claim, and another to send the full claim with all documents. Miss the deadline, send it to the wrong inbox, or forget one required document, and the claim can be time-barred—gone. Typical wording is “notice within X days, full and final claim with supporting docs within Y days.” Check the exact numbers in your C/P.

Quick test: are we inside the time bar?

1. Trigger date clear? Count from the event in your clause (often completion of cargo ops or redelivery).
2. Notice sent in time? Many forms require notice in writing within a short period (e.g., ~30 days). Use the addresses named in the C/P.
3. Full claim sent in time? Often a second, longer period (e.g., ~60–90 days) to submit the full, final claim.
4. All documents included? If one required doc is missing, many clauses bar the claim.
5. Proof of receipt? Do you have timestamped delivery and a reply or agent’s confirmation?

Common pitfalls

• Counting from the wrong trigger (e.g., berthing instead of completion of discharge).
• Notice sent to an agent only when the C/P requires notice to charterers at a specific email.
• Full claim sent in time but missing SOF or pumping logs → treated as not compliant.
• Multiple emails with large attachments; one bounces and you don’t notice.
• Using local time instead of UTC when the clause is silent; you miss the calendar day.
• “Reservation of rights” with no later full claim—time expires.

Simple steps to stay safe

1. Calendar it twice: put the notice deadline and full-claim deadline on a shared calendar at voyage start.
2. Send early notice: short email to named addresses: “We hereby give notice of potential laytime/demurrage claim…”
3. Build a one-PDF binder: cover sheet + index, then NOR, SOF, time sheets, cargo docs, logs (pumping/pressure/temperature for tankers; draft surveys for dry), LOP/letters, invoices, receipts.
4. Use the method named: if the C/P says email to X and Y, do exactly that. Ask for confirmation of receipt.
5. Checksum & resend if large: if attachments are heavy, use a share link and also send a zipped copy; keep evidence of access.

Mini examples

• Good: Notice on day 12 to the C/P inboxes; full claim day 78 with all docs as one PDF → accepted.
• Time-barred: Notice day 32 where the clause said 30 days → rejected despite strong merits.
• Incomplete: Full claim day 65 but no SOF; later SOF on day 92 → rejected as late/incomplete.
• Wrong address: Notice to agent only; C/P required notice to charterer legal inbox → rejected.

Bottom line effect

Simple Summary

After laytime is used up, demurrage usually keeps running even if there are delays like weather or congestion. That is the general idea. It is not absolute. If the charter says certain exceptions also stop time on demurrage, or if the delay is caused by the ship or owners, the clock can pause. The exact words in your charter decide it.

Quick test: does demurrage keep running?

1. When did laytime end? Pin the exact timestamp from the SOF. Without this, the debate goes nowhere.
2. What does the charter say? Look for a line that extends exceptions to demurrage or says they do not. Wording rules.
3. Who caused the delay? If it is ship’s fault, owner’s gear, or crew, time can be suspended even on demurrage.
4. Could work continue? If another hold or pump could run, keep it going. Used time tends to count.

Common pitfalls

• Treating the maxim as a hard law and ignoring charter wording that extends exceptions to demurrage.
• For tankers, forgetting that ship pump or temperature failures can stop time while on demurrage.
• Not proving the laytime expiry time, so charterers argue that the exception happened during laytime, not demurrage.
• Stopping all work when partial work was possible. Lost chance to keep the clock running.
• Assuming port strikes always stop demurrage. Many forms keep demurrage running unless the clause says otherwise.

Simple steps to stay safe

1. On arrival, pre-read the laytime and demurrage clauses. Note any line that says exceptions apply during demurrage.
2. Maintain a clean SOF. Mark the minute laytime ends. Keep cause-and-effect notes for every stoppage after that.
3. If delay is ship-caused, fix and document quickly. Tell charterers when the ship is ready again.
4. Keep any alternative work going. One pump, one hold, or partial shift can keep time running.
5. In claims, split the timeline: before expiry (laytime rules), after expiry (demurrage rules). Attach support for both parts.

Mini examples

• Weather after laytime ends: Charter has no line extending weather exceptions to demurrage. Demurrage continues.
• Ship pump failure on demurrage: Owner cause. Time usually pauses while the ship is not ready. Record pump down and pump up times.
• Port strike on demurrage: Clause says “strikes excepted even on demurrage.” Time pauses while strike prevents work.
• One crane down, other working: Partial work continues, so used hours count. Track used and lost hours separately.

Bottom line effect

Simple Summary

On tankers, the charter often promises a minimum pressure or rate at the ship’s manifold and a delivery temperature. If the ship cannot keep those because of ship-side limits, time can stop or demurrage can be cut. If the shortfall is caused by the terminal (backpressure, shore limits, breakdown) or the cargo spec itself, time usually keeps counting — but only if your logs prove it.

Quick test: are we meeting the warranty?

1. What exactly is promised? Pressure at ship’s manifold, a rate (m³/h or bbl/h), and/or a product temperature at delivery. Note any max pressure or temp limits.
2. Are we achieving it hourly? Compare your manifold pressure, hourly outturn, and delivery temperature to the promise. Mark any dips.
3. If not, who is the cause? Record shore backpressure, valve limits, terminal stops, or power outages vs any ship gear issues.
4. Did we mitigate? Parallel pumps, recirculation/heating to viscosity, stripping, line displacement, timely notice/LOP to terminal and charterers.

Common pitfalls

• No continuous pumping/pressure/temperature log; only start/finish figures — nothing to prove cause.
• Measuring tank temperature when the clause requires delivery (manifold) temperature.
• Overheating beyond charter or product limits trying to meet viscosity; creates off-spec risk.
• Accepting shore restrictions verbally without logging backpressure/valve settings or getting a terminal note.
• Dragging on with a trickle rate at the end instead of stripping/line displacement and logging why flow must be slow.
• Missing that the charter sets half-rate demurrage or similar when terminal breaks down — wording controls.

Simple steps to stay safe

1. Before berthing, preheat per cargo table; verify sensor calibration and pump readiness.
2. Run an hourly log: time, manifold pressure, rate (m³/h or bbl/h), delivery temperature, shore backpressure/valve notes.
3. If shore limits you, record and notify immediately (agent/charterers). Issue a short LOP if needed.
4. Use recirculation/heating to maintain delivery temperature without exceeding product limits.
5. Near completion, switch to stripping and line displacement; explain any slow end-rates in the log.
6. After ops, include the hourly log, terminal notes, temp charts, and any LOP in the claim pack.

Mini examples

• Shore backpressure: Ship holds 7.2 bar at manifold; terminal reports high backpressure, reduces valve opening. Log shows rate drop due to shore → time counts.
• Ship pump fault: Pump trips 02:10–03:00. Logged as ship gear delay → time usually does not count for that period.
• Temperature shortfall: Delivery temp dips below charter minimum; recirculation restores within 40 minutes. Logged recovery keeps the rest of the time running.
• Terminal breakdown: Charter says “terminal breakdown at half demurrage.” Your log + terminal letter supports applying half rate for those hours.

Sample hourly log (what to capture)

Keep this hourly (or by terminal sheet). Attach with SOF and LOP to support what counted and what did not.

Bottom line effect