Laytime

Laytime refers to the duration agreed upon in shipping contracts, during which a ship can load or unload cargo without incurring additional charges. If loading or unloading takes longer than this specified time, the shipowner may charge the charterer for demurrage fees, which are penalties for delays. Conversely, if the loading or unloading is completed quicker than agreed, the charterer may benefit from "dispatch" payments. Laytime helps manage time and costs in maritime trade, ensuring that both shipowners and charterers understand their responsibilities and potential financial implications during cargo operations.