FOB Purchases Standard Loading & Laytime Terms


BUYER shall nominate performing vessel (“Vessel”) no later than 5 days prior to Vessel’s Estimated Time of Arrival (“ETA”) at Loading Port with full particulars including nationality/flag/class, DWT, built year, ETA Loading Port and estimated cargo intake. SELLER cannot unreasonably reject Vessel. BUYER has the right to substitute the nominated Vessel within 3 days of the Vessel arrival date to the Loading Port. BUYER will keep SELLER informed of the Vessel’s position with 7 days, 5 days, 3 days, 2 days and 24 hours before the Vessel’s expected time of arrival at Loading Port.

If it becomes evident that the Vessel will arrive at the Loading Port after the expiration of the laycan or before the first layday, BUYER may ask SELLER for an extension of the laycan. SELLER shall advise the BUYER within one working day that: a) it grants extension with time counting normally as per this Agreement; or b) it grants extension but waiting time for the BUYER’s Vessel not to count as laytime. Should the SELLER grant extension of the laycan as per subsection b), BUYER shall declare within one working day whether they accept or not to bear this waiting time. If the shipment cannot be performed on the originally agreed dates, BUYER and SELLER shall mutually agree on new dates for the particular shipment, or whether the shipment should be cancelled.

For each shipment, BUYER shall propose a 10-day laycan at least 15 days before the first layday at the Loading Port. If SELLER opposes the proposed laycan, then SELLER shall provide a written notice of the same to BUYER within 2 working days after BUYER’s proposal was sent. Any difference in the Parties’ preference on laycan shall be settled by the parties through mutual discussion, with priority given to BUYER’s delivery obligations to its receiver(s).


BUYER shall provide a single deck bulk Vessel equipped with cranes. SELLER shall provide and pay for crane operators to load Vessel at the minimum average rate as confirmed in the Trade Recap per weather working day, Sundays and holidays included (“SHINC”) (“Loading Rate”) at SELLER’s time, risk and expense. SELLER shall provide and pay for any other equipment such as bulldozers/payloaders, together with operators as needed to aid with the loading of the Product at SELLER’s time, risk and expense.

Notice of Readiness (“NOR”) at Loading Port can be tendered any time day or night Sundays and holidays included (“SHINC”), upon Vessel’s arrival at Loading Port’s pilot station, whether in berth or not (“WIBON”), whether in port or not (“WIPON”), whether granted free pratique or not (“WIFPON”), whether customs cleared or not (“WICCON”).

SELLER guarantees a safe berth at port and all approaches and all available at Vessel’s arrival. Laytime shall commence 12 hours after Vessel tenders NOR, WIBON, WIPON, WIFPON and WICCON, unless loading sooner commenced.

Stevedores damages to be settled directly between stevedores and Owners. SELLER to assist as necessary to ensure any such damages and any time lost as a result thereof are settled expeditiously prior Vessel concluding loading operations.


SELLER shall pay demurrage, at the demurrage rate indicated by BUYER in the Vessel nomination (“Demurrage Rate”), for all laytime used which exceeds the allowed time.  Despatch shall be paid by BUYER on a similar basis at half the Demurrage Rate for the time by which allowed time exceeds laytime. All time waiting for berth shall be for SELLER’s account.

If loading operation of Vessel is stopped or delayed for any reason except fault of the Vessel, closure of the port (due to swell, weather conditions or anything outside the control of SELLER), or any decision of local or port authorities regarding the Vessel, including but not limited to environmental issues (i.e., dust), port congestion, lack of shore labor or shore equipment, laytime shall run without interruption and all time shall count at the indicated Demurrage Rate, from the stoppage until resumption of full work. If the Vessel is requested to leave berth by port authorities due to any of the above, laytime shall run without interruption (except the reasons of fault of the Vessel), and all time and cost to leave, stay away from and return to berth shall be for SELLER’s account until the resumption of full work.

Laytime shall not count for all interruptions caused by failure of Vessel equipment, weather delays, or Force Majeure that occur during the allow loading period (laytime). Weather delays or Force Majeure events that occurs once laytime has expired shall be for SELLER’s account. Once on demurrage always on demurrage.

BUYER shall forward the laytime calculations to SELLER as quickly as possible upon completion of loading. SELLER shall reply with acceptance or proposed changes within 30 days of sending calculations from BUYER failing which BUYER’s calculations are deemed accepted. In any event, all outstanding amounts shall be settled and paid within 60 days of completion of loading.