Laytime: Maritime Glossary

Laytime is the period of time agreed in a charter party during which a shipowner makes the vessel available for loading or discharging cargo without any extra payment. If cargo operations run longer than the laytime, the charterer usually owes demurrage.

How laytime works

Laytime is fixed in the charter party as a number of days or hours, or as a rate of tonnes handled per day. It normally starts once the vessel has arrived, is ready to work, and a notice of readiness has been tendered and accepted. Weather, holidays and other excepted periods may pause the count depending on the contract.

Laytime, demurrage and despatch

Laytime is the free time; going over it triggers demurrage, while finishing under it may earn despatch. Because these figures turn directly into money, accurate records of when the vessel arrived and how long each operation took matter to everyone involved in the port call.

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Related terms

Demurrage Charter party Bill of lading Port call ETA window All glossary terms →

Frequently asked questions

What is laytime?

Laytime is the agreed period in a charter party during which the charterer may load or discharge cargo without paying extra. Exceeding it usually means paying demurrage.

When does laytime start?

Laytime normally starts once the vessel has arrived at the agreed place, is ready to load or discharge, and a notice of readiness has been tendered and accepted, subject to the charter party terms.

What happens if laytime is exceeded?

If cargo operations take longer than the agreed laytime, the charterer usually pays demurrage to the shipowner at the daily rate set in the charter party.

How is laytime calculated?

Laytime is set in the charter party as a number of days or hours, or as a cargo-handling rate per day, and is counted from the accepted notice of readiness, with weather and excepted periods handled as the contract specifies.