Laytime

Laytime

Summary of Laytime

The amount of time permitted the charterer of a vessel to perform loading and unloading without incurring additional charges. Charter parties normally provide for demurrage charges to accrue for time used beyond that allocated; similarly, the contract may provide for despatch money to be paid to the charterer for releasing the vessel ahead of schedule. Lay days may be in the form of running days (every calendar day applies toward the laytime), working days (excludes from laytime calculations Sundays and holidays observed in the port of loading or discharge, as the case may be), or weather working days (excludes not only Sundays and holidays, but also any days on which work is prohibited by weather conditions).

(Main Author: William J. Miller)

Laytime in International Trade

Meaning of Laytime, according to the Dictionary of International Trade (Global Negotiator): The time allowed by the shipowner to the charterer or shipper in which to load or discharge the cargo. May be expressed in days or hours, or tonnes per day. Laytime may be set in running days (calendar day), working days (excludes Sundays and holydays observed by the port), or weather working days (excludes in addition days where operations are prevented by bad weather). It may be contractually provided that if the charterer or shipper loads/unloads more quickly than is necessary, he will be eligible for payment of an incentive called dispatch money; if the loading/unloading time is excessive however, the charterer or shipper may have to pay a penalty known as demurrage. Also called laydays.


Posted

in

, ,

by

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *