Laycan and laytime: two clocks that must not be confused

Laycan defines when the vessel is expected to be ready. Laytime governs how long cargo operations may take after the contractual requirements are met.

Laycan is short for laydays and cancelling. It is normally expressed as a date range, such as 01-05 December 2026. The opening date is the earliest contractual date on which the vessel can usually tender a valid notice of readiness, subject to the charter-party wording. The cancelling date is the final date in the agreed window. If the vessel is not ready as required by then, the charterer may acquire a right to cancel, but that right and its timing depend on the governing clauses.

A vessel arriving before the first layday is not automatically entitled to start laytime. Early loading may occur by agreement, but the time treatment must be checked in the fixture terms.

Why laycan matters when matching

A cargo window and a vessel open date should not be compared as isolated dates. A broker should also allow for the vessel's current position, ballast distance, realistic speed, weather, congestion, bunkering and any preceding employment. A vessel open nearby can still miss the cargo window; a more distant vessel may be workable when its schedule and route are clearer.

Good matching distinguishes between a firm fit and a flexible possibility. A direct overlap can score strongly. A near miss may remain commercially interesting if the cargo window can be extended or the vessel can improve its position, but it should carry a visible timing penalty and require confirmation rather than being treated as a confirmed fit.

What laytime measures

Laytime is the contractually allowed time for loading and/or discharging. It begins only after the conditions in the charter party are satisfied. Common inputs include the cargo quantity, agreed loading or discharging rate, working-time qualifications, valid notice of readiness, commencement rules and excluded periods.

ConceptCommercial function
LaycanDefines the vessel's contractual readiness window.
NORFormal notice that the vessel is ready, subject to contractual validity.
LaytimeAllowed time for loading or discharging.
DemurrageAgreed compensation when allowed laytime is exceeded.
DespatchPayment for laytime saved where expressly agreed.

SSHEX, SSHINC, FSHEX and FSHINC

Working-time abbreviations qualify which days and hours count. Their practical operation can be changed by local holidays, port custom and additional clauses, so the full recap and charter party always control.

  • SSHEX: Saturdays, Sundays and holidays excluded.
  • SSHINC: Saturdays, Sundays and holidays included.
  • FSHEX: Fridays, Saturdays and holidays excluded, often encountered in markets where Friday and Saturday form the weekend.
  • FSHINC: Fridays, Saturdays and holidays included.

Qualifiers such as "unless used", "if used actual time used to count", weather working days, reversible laytime and separate loading/discharging calculations materially change the outcome. They should never be inferred from an abbreviation alone.

Broker review checklist

  1. Confirm the dates, year and local time basis.
  2. Check whether the vessel open date is estimated, fixed or subject to completion of prior employment.
  3. Estimate ballast time with a realistic route and margin.
  4. Read NOR, berth/port status and commencement wording together.
  5. Verify loading and discharging rates with their working-time terms.
  6. Record any laycan extension or revised dates in writing.
This guide explains common commercial usage. The signed recap, charter party, incorporated form and applicable law determine the contractual result.

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