Glossary

Laycan: The time frame in which the Master should present his vessel ready in all respects to load the nominated cargo. NoR shall be tendered before the expiry of laycan

Laytime: The time available to the charterer to load (or discharge) the chartered cargo free of additional cost over and above the freight paid to the owner

Charterer: The Hirer. The person (or usually a company) that hires the vessel for trade

Freight: The money payable by the charterer to the ship-owner for carrying the cargo on the said ship

Voyage Charter: A charter party contract where the vessel is hired for one single voyage. Bunkers in this type of charter party remain the Ship Owner’s responsibility

Time Charter: A Charter Party contract where the vessel is hired for a specific period of time. The Vessel, Master and Crew are placed at the charterer’s disposal for the entire duration subject to certain clauses. Bunkers in this type of c/p become the Charterer’s responsibility

Demurrage: For lack of a better term, Demurrage is a penalty paid by the charterer to the ship-owner for exceeding the laytime period in loading / discharging a ship

Despatch: The exact opposite of Demurrage. This is the money paid by the shipowner to the charterer for loading / discharging the vessel earlier to the expire of laytime period .This is generally done, when the vessel has a potential employment opportunity available and the charterer will release the vessel upon the payment. Legally, the charterer is entitled to retain the vessel until expire of the laytime period.

Onboard Quantity (OBQ): This is the quantity on board prior loading.

Remaining Onboard (ROB): This is the quantity remaining on board after discharging / part discharging a cargo. Any RoB at the discharge port subsequently becomes OBQ at the Load Port.