Demurrage and Despatch

In voyage chartering, the owner allows a specific amount of time (Laytime) for the charterer to load and discharge cargo. If this time is exceeded, the charterer pays Demurrage. If completed early, the owner pays Despatch.

The Core Question: When does the clock start?

Laytime commences based on the Notice of Readiness (NOR). The vessel must be an 'arrived ship', fully ready in all respects to load or discharge cargo.

Common Laytime Definitions

Term	Meaning
SHINC	Sundays and Holidays Included. The clock runs continuously.
SHEX	Sundays and Holidays Excluded. The clock stops during these periods.
WWD	Weather Working Days. Time stops if bad weather prevents loading.

Market Fact

In 2022, demurrage claims accounted for nearly 40% of all post-fixture disputes handled by major P&I clubs. Source: UK P&I Club Claims Review, 2023

Worked Example: Demurrage Calculation

Allowed laytime: 5 days. Actual time used: 7 days, 12 hours (7.5 days). Demurrage rate: $15,000/day.

Time Exceeded: 7.5 - 5 = 2.5 days
Total Demurrage: 2.5 days * $15,000 = $37,500

Common Mistakes

Assuming 'Once on Demurrage, Always on Demurrage' applies absolutely. Exceptions exist if specifically drafted in the charterparty.
Tendering NOR before the vessel is actually within port limits (WIP).

Natural Next Step

After cargo is loaded and laytime disputes are settled, the master must sign the receipt for the goods.

Proceed to next guide

Demurrage & Despatch Calculations