Faster Doesn’t Always Mean Better

Some trader bought a parcel of bulk product and fixed a vessel which arrived at the discharging port after a perfect passage.

Seeing that a berth was free, the forwarding agent decided to berth the vessel and started discharging the same day at 11:00 a.m. However, discharging wasn’t as fast as expected due to various unpredictable delays and was completed only at noon the following Monday.

The trader and the agent were monitoring laytime and calculated that laytime would start on Tuesday at 08:00 a.m., which they believed would be enough to avoid demurrage; however, after completion of discharge, they received a demurrage claim.

Fixing terms:

Cargo quantity: 5,500 mts, agri products

Discharging rate: 1,500 mt SSHEX; 5:00 p.m. Friday / 8:00 a.m. Monday not to count (EIU)

Laytime: to start counting at 08:00 a.m. on the next working day after valid NOR tendering (working days, office hours)

NOR tendered: Monday, 16 June 2025, at 08:00 a.m.

Charter form: GENCON 94

Let’s ask what SmartChart thinks about two situations: (1) the vessel berthed upon arrival and discharging started immediately; or (2) discharging started when laytime commenced.

Please calculate laytime for the two scenarios.

1 Scenario:

16.06 10.00 vessel berthed

16.06 11.00 discharging started

23.06 discharging completed at 11.00 am

2 Scenario:

16.06 10.00 vessel berthed

17.06 08.00 discharging started

24.06 discharging completed at 09.00 am

fixing terms :

Cargo quantity 5500 mts agri prods

Discharging  rate 1500 SSHEX 5 pm Friday / 8am Monday not to count  EIU

Lay time start to count 8.00 am next working day after valid nor tendering (working days, office hours)

Nor tendered 16 June (Monday) 2025 at 08:00 am

Otherwise as per Gencon 94 attached

Reply

Fixture Details

Vessel: — (not provided)

Charter Party Proforma: GENCON 1994. Commencement/ATUTC rule per cl.6(c).

CP Date: — (not provided)

Laycan: — (not provided)

Loading Port: — (not provided)

Discharging Port: — (not provided)

Cargo: Agri products

Quantity AS PER B/L (MT): 5,500 (recap; please confirm matches B/L)

Loading/Discharging Rate (MT/day): 1,500, SSHEX, with “1700 Fri – 0800 Mon not to count, EIU”. SSHEX/SATSHEX = Saturdays, Sundays, Holidays Excluded; “excluded” means time does not count even if used (EIU).   

Laytime Terms: Discharge leg only; reversible status not stated (GENCON 94 provides alternatives for separate vs total time in Box 16; not provided).

Demurrage Rate: — (not provided)

Prevailing terms and how they apply

- Commencement: Recap prevails over GENCON default. Recap: “starts to count 08:00 next working day after valid NOR (working days, office hours).” GENCON 94 cl.6(c) still applies that “time used before commencement shall count” (ATUTC), unless expressly excluded (not excluded here).

- Exclusions while time is running: SSHEX and the specific weekend bracket 1700 Fri–0800 Mon are “excluded/even if used,” i.e., not to count against allowed time while time is running.

- After allowed time is exhausted: Per Laytime Definitions, demurrage is not subject to laytime exceptions unless specifically stated; no such override stated in recap, so once allowed time is used up, time runs continuously.

Notice of Readiness

NOR Tendered: Monday, 16.06.2025 at 08:00 LT (working day)

Accepted at: — (not stated; validity taken from recap instruction)

Laytime Starts (per recap): 08:00 LT next working day after valid NOR = Tuesday, 17.06.2025 at 08:00 LT. Time used before this start counts per GENCON 94 cl.6(c).

Laytime Allowed

Calculation: 5,500 MT ÷ 1,500 MT/day = 3.6667 days = 3 days 16 hours = 88:00 hours. “Day” = 24 consecutive hours.

Free time for documents: none stated.

Reversible or non-reversible: not stated; calculation below covers discharge operation only (unchanged by reversibility in absence of a loading-leg calculation).

SCENARIO 1

Events (user): 16.06 10:00 berthed; 16.06 11:00 discharging started; 23.06 11:00 completed.

Laytime Calculation (until allowed time is exhausted)

First BALANCE = 88:00

16.06.2025 (Mon)

- 00:00–08:00 NOT TO COUNT (before NOR)

- 08:00 NOR tendered

- 08:00–10:00 NOT TO COUNT (waiting/alongside before cargo ops; only actual time used before commencement counts)

- 10:00 berthed (info)

- 11:00–24:00 TO COUNT (actual time used before commencement counts per GENCON 94 cl.6(c)) = 13:00. BALANCE 75:00.

17.06.2025 (Tue)

- 08:00 LAYTIME STARTS TO COUNT (per recap)

- 00:00–08:00 TO COUNT (actual time used before commencement) = 08:00.

- 08:00–24:00 TO COUNT (running time) = 16:00.

- Daily total = 24:00. BALANCE 51:00.

18.06.2025 (Wed)

- 00:00–24:00 TO COUNT = 24:00. BALANCE 27:00.

19.06.2025 (Thu)

- 00:00–24:00 TO COUNT = 24:00. BALANCE 03:00.

20.06.2025 (Fri)

- 00:00–03:00 TO COUNT = 03:00. BALANCE 00:00 at 03:00 LT.

- Laytime exhausted at 03:00 LT on Fri 20.06.2025; from this moment all further time runs as time on demurrage without weekend/holiday exceptions unless specifically agreed otherwise (none stated).

Result Scenario 1

- Laytime used: full 88:00 by 03:00 LT Fri 20.06.2025.

- Completion of discharge: 11:00 LT Mon 23.06.2025 (weekend 1700 Fri–0800 Mon would have been excluded during laytime but does not interrupt time once on demurrage).

SCENARIO 2

Events (user): 16.06 10:00 berthed; 17.06 08:00 discharging started; 24.06 09:00 completed.

Laytime Calculation (until allowed time is exhausted)

First BALANCE = 88:00

16.06.2025 (Mon)

- 00:00–24:00 NOT TO COUNT (before commencement; no “time used” before commencement)

17.06.2025 (Tue)

- 08:00 LAYTIME STARTS TO COUNT (per recap)

- 08:00–24:00 TO COUNT = 16:00. BALANCE 72:00.

18.06.2025 (Wed)

- 00:00–24:00 TO COUNT = 24:00. BALANCE 48:00.

19.06.2025 (Thu)

- 00:00–24:00 TO COUNT = 24:00. BALANCE 24:00.

20.06.2025 (Fri)

- 00:00–17:00 TO COUNT = 17:00. BALANCE 07:00.

- 17:00 Fri – 08:00 Mon NOT TO COUNT (SSHEX weekend excluded, EIU). BALANCE remains 07:00.

23.06.2025 (Mon)

- 00:00–08:00 NOT TO COUNT (weekend bracket end 08:00)

- 08:00–15:00 TO COUNT = 07:00. BALANCE 00:00 at 15:00 LT.

- Laytime exhausted at 15:00 LT Mon 23.06.2025; thereafter time runs continuously as time on demurrage (no weekend/holiday exceptions unless agreed).

Result Scenario 2

- Laytime used: full 88:00 by 15:00 LT Mon 23.06.2025.

- Completion of discharge: 09:00 LT Tue 24.06.2025 (time from 15:00 Mon to completion runs as time on demurrage).

Notes and confirmations requested

- Please confirm if the 5,500 MT equals the total B/L quantity; if different, I will adjust the allowed time accordingly per the rules to base allowance on B/L quantities.

- Reversible vs non-reversible terms are not provided. GENCON 94 permits either separate or total time by agreement in Box 16; since only the discharge leg is being calculated here, reversibility does not change the above figures, but please advise the agreed term for record.

References applied

- GENCON 1994 cl.6(c) (commencement; ATUTC).

- Laytime Definitions 2013: “Day” (24 hours); “Excluded/Excepted (EIU)”; “Demurrage not subject to laytime exceptions unless stated.”   

- Glossary: SHEX/SATSHEX meanings.

If you want, I can extend this with a demurrage/dispatch computation once you provide the rate(s) and confirm B/L quantities.

so what conclusion what time on demurrage for both scenarios?

Conclusion — time on demurrage

- Scenario 1

  • Laytime exhausted at 03:00 Fri 20.06.2025 (time used before formal start counted per GENCON 94 cl.6(c)).

  • Demurrage runs 03:00 Fri 20.06.2025 to 11:00 Mon 23.06.2025 = 80:00 hours (3 days 8 hours). Once on demurrage, SH/WE exceptions do not apply.

- Scenario 2

  • Laytime exhausted at 15:00 Mon 23.06.2025 (Fri 17:00–Mon 08:00 excluded per SSHEX EIU before laytime was used up).

  • Demurrage runs 15:00 Mon 23.06.2025 to 09:00 Tue 24.06.2025 = 18:00 hours (0 days 18 hours). Once on demurrage, SH/WE exceptions do not apply.

Note: These results assume the allowed time was 5,500 MT ÷ 1,500 MT/day = 88:00 hours based on your recap; if B/L quantity differs, the demurrage periods will shift accordingly.