Laytime

Laytime is the amount of time the shipowner agrees to place the vessel at the charterer's disposal for cargo operations as part of the freight already agreed. It is a mainstay of voyage chartering, because it draws the line between the port time the owner has effectively sold to the charterer and the time beyond it for which the charterer must pay extra. Laytime may be expressed as a fixed number of days, or as a rate of work (for example a stated number of tonnes loaded or discharged per day) from which the allowed time is calculated against the cargo quantity.

Laytime normally begins to count after the ship has arrived, is ready to work the cargo, and a valid notice of readiness has been tendered and, where required, accepted, sometimes after a fixed period of free time has elapsed. From that point the clock runs according to the terms of the charter party, which define whether it counts running days, weather working days, or excludes Sundays and holidays. Exceptions written into the charter (bad weather that stops work, strikes, or breakdowns on the shore side) may suspend laytime so that lost time does not count against the charterer.

The careful reconciliation of laytime is done after the event using the statement of facts, a chronological record of everything that happened in port signed by the ship and the terminal, and a laytime statement that sets time allowed against time used. If the charterer used more than the allowance, demurrage is due to the owner; if less, despatch may be due to the charterer. Because millions of dollars can turn on a few hours and on the precise wording of the clause, laytime and its calculation are a specialised and frequently disputed area of shipping law and commerce.