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Laytime in Practice: Why Time Really Is Money — and Why Benchmarks Matter
Laytime in Practice: Why Time Really Is Money — and Why Benchmarks MatterIn shipping, laytime is one of those concepts everyone thinks they understand—until a claim lands on the desk. On paper, it is simple: laytime is the agreed amount of time allowed for loading and/or discharging cargo before demurrage becomes payable. In practice, laytime is where commercial reality, port performance, contract wording, and operational discipline collide.
If you want to understand why laytime still drives disputes decades after standard forms were introduced, you have to look beyond definitions and into how laytime actually operates across different trades and regions.
Laytime Is a Commercial Risk Allocation Tool
Laytime is not just a clock—it is a risk-sharing mechanism. Owners agree to make their vessel available; charterers agree to load or discharge within an agreed time. Once that time is exceeded, demurrage compensates the owner for loss of use of the vessel.
What often gets overlooked is that laytime is negotiated against expectations. A grain shipment out of the US Gulf assumes a different loading profile than a coal cargo out of Richards Bay or a fertilizer discharge at an Indian port. Laytime allowances reflect historical port productivity, local practices, and bargaining power.
For example, a charterparty may allow five weather working days (WWD) of 24 consecutive hours for discharging bulk cargo. That wording already embeds assumptions about crane rates, shore availability, and average weather interruptions. When those assumptions prove optimistic, demurrage starts to accrue—and arguments begin.
The Real Battleground: When Does Laytime Start?
Most laytime disputes are not about the mathematics; they are about when the clock started. Notice of Readiness (NOR) remains the single most litigated document in voyage charters.
Consider a common scenario: a vessel arrives outside port limits due to berth congestion. The charterparty allows WIPON, WIBON, and WIFPON (Whether In Port, In Berth, Whether In Free Pratique Or Not). On paper, this provides flexibility. In reality, local port regulations, customs practices, or missing documents can invalidate the NOR and delay laytime commencement by days.
This is where experience matters. Issuing NOR as fast as possible is not the same as issuing NOR validly.
Laytime Benchmarks: Same Concept, Very Different Outcomes
Laytime allowances vary widely by region and cargo. This variation explains why the phrase “market standard” is dangerous unless both location and cargo type are clearly defined.
Dry Bulk – Major Export Terminals
At modern export terminals such as Australian iron ore or Brazilian soybean ports, laytime is often tight because loading rates are predictable. Rates of 8,000 to 15,000 metric tons per weather working day are common, sometimes expressed as a fixed number of days. Demurrage risk is relatively low when vessel queues are managed effectively.
Developing Port Infrastructure
Smaller African or South Asian ports present a different reality. Nominal discharge rates of 3,000 to 5,000 metric tons per day can be undermined by labor shortages, draft restrictions, and equipment failures. Even wider laytime allowances may fail to absorb prolonged congestion.
Weekends, Holidays, and Local Customs
Time exclusions vary sharply by region. A clause stating Sundays and Holidays Excepted (SHEX) may appear standard, yet local religious observances or unofficial holidays can dramatically reduce working time. In some regions, Fridays operate at reduced capacity; in others, work continues at half efficiency.
Statements of Facts frequently reveal a reality that diverges significantly from what rate clauses suggest.
Why Benchmarks Are Only Half the Story
Benchmarking laytime is useful, but it is not a guarantee. Two ports with identical discharge rates can produce entirely different outcomes depending on berth discipline, crane reliability, and customs clearance efficiency.
This is why experienced charterers rely on historical port performance data rather than charterparty wording alone. A generous laytime allowance at a congested port can still result in demurrage exposure if NOR is delayed or time exclusions are narrowly drafted.
Laytime Still Matters—Perhaps More Than Ever
With freight markets volatile and port congestion recurring in cycles, laytime has regained importance as a commercial pressure point. Owners depend on demurrage to protect earnings, while charterers scrutinize every stoppage to limit exposure.
Laytime is not a clerical exercise. It is an operational discipline that begins long before arrival and often ends well after departure, frequently in a claims department rather than at the port.
Understanding laytime benchmarks and how they operate in practice is not about eliminating disputes entirely. It is about identifying where risk truly sits before the vessel even sails.
