The demurrage, laytime and charter-party terms that appear in tanker claims, explained in plain English. Bookmark it, or use DemurrageIQ to apply them automatically.
- Demurrage
- Money the charterer pays the shipowner when the vessel is kept at the load or discharge port beyond the agreed laytime. It is charged at a daily rate fixed in the charter party.
- Despatch
- The reverse of demurrage: money the owner pays the charterer for finishing loading or discharging before the laytime runs out. On tankers it is often not payable; on dry cargo it is usually half the demurrage rate.
- Laytime
- The amount of time the charterer is allowed for loading and discharging, without paying extra. Expressed either as fixed hours/days or as a cargo rate (e.g. MT per hour).
- Laycan
- The window of dates ("laydays / cancelling") within which the vessel must arrive and tender its Notice of Readiness, or the charterer may cancel.
- Notice of Readiness (NOR)
- The master's formal notice that the vessel has arrived and is ready to load or discharge. A valid NOR is what starts the laytime clock (after any agreed turn time).
- Statement of Facts (SOF)
- The chronological record, signed at the port, of every event during the vessel's call — arrival, NOR, berthing, hose connection, start/stop of cargo, delays. It is the primary evidence in any laytime calculation.
- Letter of Protest (LOP)
- A formal note issued by the master or agent recording an objection — slow loading, terminal delay, off-spec cargo — that may support moving time onto the other party's account.
- Charter Party (CP)
- The contract between owner and charterer. It sets the demurrage rate, the laytime basis, the exceptions and the governing law. Everything in a claim is judged against the CP.
- Reversible laytime
- Load and discharge time are pooled into one combined allowance, rather than judged separately at each port. Time saved at one end can offset time lost at the other.
- Non-reversible laytime
- Laytime is counted separately for loading and for discharging, each against its own allowance.
- SHINC
- "Sundays and Holidays Included" — laytime counts continuously, including weekends and holidays.
- SHEX
- "Sundays and Holidays Excluded" — laytime does not count on Sundays and holidays (variations include SHEX EIU, "even if used").
- WWD
- "Weather Working Day" — a day (or part) on which work would normally happen and weather permits; time is not counted when bad weather stops work.
- WIBON / WIPON / WIFPON
- "Whether In Berth Or Not / In Port Or Not / In Free Pratique Or Not" — clauses that let a valid NOR be tendered, and laytime start, even if the vessel is not yet at berth.
- Demurrage rate
- The agreed daily amount payable once the vessel is on demurrage, set in the charter party (e.g. USD 24,000 per day, pro rata).
- Time bar
- The contractual deadline for presenting a demurrage claim with supporting documents. Miss it and the claim can be lost entirely, however valid.
- Load / discharge rate
- A cargo-based way of expressing laytime — e.g. 450 MT per hour. Allowed laytime = cargo quantity ÷ the rate.
- Address commission
- A percentage deducted from freight and demurrage, effectively a rebate to the charterer, set in the charter party.
- Turn time
- A grace period after NOR is tendered (e.g. 6 hours) before laytime starts to count.
- Free pratique
- Port health clearance allowing the crew and vessel to interact with the shore. Some charters require it before a valid NOR.