Key Terms (Demurrage case)

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Demurrage

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A charge payable to the owner of a ship for failure to load or discharge the ship within the laytime (agreed time).

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Laytime / Laydays

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The agreed number of days for loading and discharging the cargo. It is a critical part of a voyage charter party.

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Notice of Readiness (NOR)

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A formal document from the ship's master to the charterer stating that the vessel is ready to load or discharge cargo. Tenders the start of laytime.

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Weather Working Day (WWD)

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A day when weather permits cargo work to be carried out. If weather interrupts work, that time does not count as laytime.

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SHEX (Sundays, Holidays Excepted)

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A charter party term meaning that Sundays and public holidays are not counted as laytime, even if work is done.

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Statement of Facts (SoF)

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A log prepared by the ship's agent, signed by the master and shipper/receiver, recording times and reasons for all delays and work stoppages

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Force Majeure

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Unforeseeable circumstances that prevent someone from fulfilling a contract, e.g., war, strikes, riots, "Acts of God."

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Strike

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A work stoppage by a body of workers. In charter parties, it's often cited as an exception event that may stop the laytime clock.

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Breakdown of Shore Equipment

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The failure of port facilities (e.g., cranes, conveyors). It is a common point of dispute over who bears the risk of the delay.

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Pro Rata

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Proportional calculation. Demurrage is often calculated pro rata for part of a day (e.g., $12,000 per day / 24 hours = $500 per hour).