Guide

How to calculate laytime: a worked example

Laytime is the time the charterer is allowed to load or discharge. When it runs out, demurrage runs; if the work finishes early, despatch may be earned. Here is one discharge worked through from the notice of readiness to the amount due.

The answer in one line

Laytime used = time from commencement to completion, minus the time the charter party excepts. If that is more than the laytime allowed, demurrage is due on the difference; if less, despatch may be due.

Demurrage = (time used − time allowed) in days × demurrage rate per day

The fixture

TermWhat the charter party says
Cargo50,000 mt
Discharge rate10,000 mt per weather working day of 24 consecutive hours
ExceptionsSHEX — Sundays and holidays excepted, even if used
CommencementNOR tendered before noon: laytime starts 14:00 the same day. After noon: 08:00 the next working day
Demurrage / despatchUSD 12,000 per day / USD 6,000 per day

The statement of facts

WhenEvent
Thu 5 Mar 2026, 10:30Notice of readiness tendered
Thu 5 Mar, 13:00All fast
Thu 5 Mar, 14:00Discharging commenced
Fri 6 Mar, 09:00–15:00Rain, discharging stopped
Thu 12 Mar, 18:00Discharging completed

No holidays fell in the period at the discharge port.

Step 1: the laytime allowed

50,000 mt ÷ 10,000 mt per day = 5 days = 120 hours.

Step 2: when laytime starts

The notice was tendered at 10:30, before noon, so under the clause laytime starts at 14:00 on Thursday 5 March. The clause decides this, not the time the notice was handed over: other charters give a turn time (for example 6 hours after notice) or start the next working day.

Step 3: count the time, and take out what is excepted

PeriodHoursCounts?Laytime used
Thu 5 Mar 14:00 – 24:0010Yes10
Fri 6 Mar 00:00 – 09:009Yes19
Fri 6 Mar 09:00 – 15:00, rain6No — weather19
Fri 6 Mar 15:00 – 24:009Yes28
Sat 7 Mar24Yes52
Sun 8 Mar24No — SHEX52
Mon 9 Mar24Yes76
Tue 10 Mar24Yes100
Wed 11 Mar 00:00 – 20:0020Yes120 — laytime expires
Wed 11 Mar 20:00 – 24:004Demurrage
Thu 12 Mar 00:00 – 18:0018Demurrage

Under a weather working day of 24 consecutive hours, time lost to weather is deducted, so the 6 hours of rain come out. Sunday comes out under SHEX. Both happened while laytime was still running.

Step 4: when laytime runs out

The 120 hours are used up at 20:00 on Wednesday 11 March. From that moment the vessel is on demurrage.

Once on demurrage, always on demurrage. After laytime expires, the exceptions stop applying: a Sunday or a rainy day after 20:00 on Wednesday would have counted in full. The exception is a clause that says the time is "not to count as laytime nor as time on demurrage".

Step 5: the demurrage due

From 20:00 Wednesday to completion at 18:00 Thursday is 22 hours.

22 hours ÷ 24 × USD 12,000 = USD 11,000.00
Summary
Laytime allowed120 h
Time from commencement to completion172 h
Less rain−6 h
Less Sunday (SHEX)−24 h
Laytime used142 h
Demurrage: 22 h at USD 12,000 per dayUSD 11,000.00

Had discharging finished before laytime ran out, despatch would have been earned instead, at USD 6,000 per day on the time saved — counted either as working time saved or all time saved, depending on the charter party.

For the same working across a whole voyage — two load ports, two discharge ports and two contracts reading the same hours — see the full laytime statement example.

Where laytime statements usually go wrong

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