Laytime and demurrage
Allowed time is the cargo quantity divided by the daily rate; used time is what the statement of facts counts. Overrun is paid as demurrage, saved time as despatch, customarily at half the demurrage rate.
How it is calculated
- Allowed = quantity ÷ rate per day
- Used = days + hours ÷ 24
- Difference = used − allowed
- Positive difference × demurrage rate = demurrage
- Negative difference × demurrage rate ÷ 2 = despatch (if agreed at half)
What the calculator does not know
Whether time counts on Sundays and holidays, whether notice of readiness was tendered in time, shifting, weather stops and "once on demurrage, always on demurrage". The statement of facts and the charter party decide.