How to create a laytime calculation

Laytime is the time allowed for loading and unloading a vessel at a port or terminal. It is typically
specified in a charter party, which is a contract between the owner of a vessel and the charterer (i.e.,
the party that hires the vessel). The purpose of laytime calculation is to determine whether the
vessel has been used efficiently and to apportion any demurrage (i.e., compensation for delays) or
despatch (i.e., bonus for early completion) that may be due.

Here is a general outline of how to create a laytime calculation:

Determine the laytime allowance: This is the amount of time that has been agreed upon in the
charter party for loading and unloading the vessel. The laytime allowance may be expressed in days,
hours, or both. It is important to carefully review the charter party to determine the laytime
allowance and any special provisions that may apply.

Calculate the time spent at the port: This includes the time from when the vessel arrives at the port
until it leaves. To calculate the time spent at the port, you will need to consider factors such as the
vessel's arrival and departure times, any delays that may have occurred, and any time spent waiting
for a berth or pilot.

Subtract any exceptions or exclusions: The charter party may specify certain times that do not count
towards the laytime allowance, such as weekends or holidays. You will need to subtract these
exceptions or exclusions from the total time spent at the port to determine the amount of laytime
that has been used.

Calculate the demurrage or despatch: Once you have determined the amount of laytime that has
been used, you can calculate any demurrage or despatch that may be due. Demurrage is calculated
by multiplying the number of excess laytime days by the demurrage rate, which is typically specified
in the charter party. Despatch, on the other hand, is calculated by multiplying the number of unused
laytime days by the despatch rate.

It is important to carefully review the charter party and to consider any special provisions that may
apply to the laytime calculation. If you have any questions or are uncertain about how to calculate
laytime, it is advisable to seek legal or professional advice.