Emergency Contact Laytime & Demurrage Home Latest updates Publications Laytime & Demurrage 15 Aug 2023 View PDF Sign up for alerts Laytime and demurrage are two of the most fundamental principles applicable to voyage charterparties. This guide will set out a basic summary of what they are and how they operate in practice. Whilst the position can vary from jurisdiction to jurisdiction, the following principles govern the construction of the relevant incorporation clauses under English law and are set out below for guidance purposes only. What is Laytime? Put simply, laytime is the amount of time allowed for loading and discharging of cargo during a voyage charterparty. However, this means not only placing cargo in the vessel but also the stowage/securing/other cargo operations to ensure safety. In the absence of express provision, it does not matter whether the charterparty requires the charterer or the owner to perform those tasks. “ Loading is not complete until the cargo is so placed in the ship that the ship can proceed on her voyage in safety ”   [1] The Commencement of Laytime Laytime commences after the tendering of a Notice of Readiness (NOR). This is a notification that both (i) the vessel has arrived at the agreed place; and (ii) it is ready to load or discharge (physically and legally). In “The Tres Flores” [2] the Court of Appeal held that in order to give a valid notice of readiness a ship must be ready to obey the charterer’s instructions for loading whenever they should be given. In this case there were pests in the holds, making the ship unready to receive the chartered cargo until fumigation had been completed, the notice of readiness was invalid. Readiness is a preliminary existing fact which must exist before notice of readiness can be given. The vessel must not only be physically ready to load or discharge, as required, when the notice of readiness is given but also legally ready. The normal requirements, for which express provision i