Laycan vs Laytime

Something newer operators and schedulers often confuse are the terms Laycan and Laytime. They sound similar but they refer to two very different parts of a shipping contract.

The Laycan of a vessel is the agreed window that defines the earliest and latest date a vessel can present itself ready to load at the agreed port or place of loading.

If the vessel arrives too early, it may have to wait because the charterer is not yet obligated to start loading material. If the vessel arrives after the last date in the laycan, the charterer will usually have the right to cancel the contract.

Laycans vary depending on cargo type, vessel size, port operations and market conditions. For dry-bulk a typical laycan may be 5-10 days. For tankers laycans are often tighter, sometimes 48-72 hours, because liquid cargoes are usually more precisely scheduled and terminals work to narrower loading windows.

Laytime is different. It is the agreed amount of time that the charterer has to load or discharge the cargo once the vessel is ready and has tendered a valid Notice of Readiness.

If the charterer fails to load the vessel within the agreed laytime then demurrage will be applied. However, laytime will only begin once the vessel is in the agreed laycan. If it arrives before the first date in the laycan, laytime will usually not begin until the opening of the laycan (unless the charterer agrees to accept the vessel earlier).

In simple terms, the laycan is the arrival window, laytime is the operating clock. Laycans protect the charterer from a vessel arriving too early or late. Laytime protects the shipowner from the vessel being held in port longer than agreed.

It is an important yet subtle distinction that must be fully understood to ensure losses are not created from confusion over dates in shipping contracts.