Background
Why NOR matters
A voyage charter party allocates time risk between the shipowner and the charterer through the laytime and demurrage framework. The framework requires a clear starting event: from when does the laytime clock begin? That starting event is the valid Notice of Readiness.
If the NOR is invalid (premature, defective, improperly tendered), it does not start laytime. The vessel may sit at the port for hours or days waiting for a valid NOR to be re-tendered, while the shipowner accumulates operational cost without compensation. Conversely, if the master tenders an over-eager NOR that the charterer accepts (perhaps unwisely), laytime starts even though the vessel was not actually ready, and the shipowner secures an unintended commercial advantage.
NOR is therefore the technical pivot point of the entire chartering financial calculation. Disputes over NOR validity are the most frequent demurrage litigation topic.
Charter party vs port practice
NOR validity depends on the interaction between:
- Charter party terms: what the parties contractually agreed (governing law, specific NOR clauses, time exclusions).
- Port practice: what is customary at the specific port (office hours, agent practice, government formalities).
- Vessel condition: what the vessel was actually like at the time of tender.
A skilled master, broker and charter party draftsperson address all three in advance. Loose drafting or unfamiliar port practice produces disputes.
The three conditions for valid NOR
Condition 1: Arrival at the agreed point
The vessel must have physically arrived at the contractually agreed point:
- Port charter (vessel chartered to the port): arrival within the port limits is sufficient. The “port limits” are typically the seaward boundary of the port authority’s jurisdiction, defined geographically.
- Berth charter (vessel chartered to a specific berth): arrival at the specific berth is required. NOR cannot be tendered from the anchorage if the berth is empty.
Modern charter parties typically include flexibility clauses:
- WIBON (Whether In Berth Or Not): NOR can be tendered from the anchorage even on a berth charter if the berth is unavailable. Most common modern provision.
- WIPON (Whether In Port Or Not): even more permissive; NOR can be tendered from the customary anchorage outside the port limits.
- WIFPON (Whether In Free Pratique Or Not): NOR can be tendered before free pratique is granted (subject to subsequent grant within reasonable time).
- WCCON (Whether Customs Cleared Or Not): NOR can be tendered before customs clearance.
These flexibility clauses shift risk: with WIBON, the charterer bears the risk that the berth is unavailable when the vessel arrives; without WIBON, the shipowner bears it.
Condition 2: Physical and documentary readiness
The vessel must be ready in all respects to load or discharge:
- Cargo holds clean and dry (or in the agreed condition for the cargo type).
- Hatches and hatch covers operable.
- Cargo gear (cranes, derricks) functional, where used for cargo operations.
- Ballast condition appropriate (sufficient ballast for stability during loading; ballast pumped out to expose cargo on discharge).
- Pumps tested and ready (for tankers).
- Free pratique granted (vessel cleared by health authorities to land cargo and crew).
- Customs clearance obtained (for cargo importation).
- Documentary readiness (cargo manifests, certificates, surveyor reports as required).
Subject to WIFPON / WCCON clauses, missing items invalidate the NOR. The standard practice is for the master to tender NOR only when all items are confirmed ready, with the surveyor / agent verification.
Condition 3: Tendering through the prescribed channel and hours
The NOR must be:
- Communicated through the prescribed channel (typically email, sometimes telex for legacy contracts; charter party language governs).
- Addressed to the specified party (charterer’s office, port agent, or both depending on charter party).
- Within prescribed hours (typically office hours of the recipient: 0900-1700 weekdays for European/American agents; varies for other regions).
- In writing (oral notice is generally insufficient).
If tendered outside prescribed hours, the NOR is conventionally deemed delivered at the next opening of office hours. So a NOR tendered at 1830 Friday may be deemed delivered at 0900 Monday morning.
NOR drafting and content
Standard NOR text
A typical NOR includes:
- Vessel name and IMO number.
- Port and berth (if applicable).
- Date and time of tender.
- Statement that the vessel has arrived at the [contractual arrival point].
- Statement that the vessel is ready to load/discharge in all respects.
- Reference to the charter party under which the NOR is tendered.
- Master’s signature.
Modern NORs are typically computer-generated from the agent’s standard template and emailed to the charterer with a confirmation reading receipt requested.
Master’s verification
Before signing the NOR, the master verifies:
- The vessel is actually within the contractual arrival point (chart position).
- The holds are clean and dry (or in the agreed condition).
- The hatches and gear are operational.
- The ballast condition is correct.
- All required certificates are valid and onboard.
- Free pratique and customs clearance are obtained (if required by the charter party).
If any item is missing, the master should NOT tender NOR; doing so risks accepting a defective NOR with cargo claim consequences.
Agent’s role
The port agent assists the master by:
- Confirming local office hours and customary tender practice.
- Receiving acknowledgements from the charterer’s local agent.
- Filing the NOR with port authorities where required.
- Coordinating any port surveys (cargo readiness, customs).
For complex ports (Singapore, Rotterdam, Houston, Shanghai), the agent’s local knowledge is invaluable.
Acceptance and rejection of NOR
Acceptance
When the charterer (or agent) accepts the NOR, laytime commences from the deemed delivery time per the charter party. The charterer is bound; subsequent challenges to NOR validity may be limited.
Some charter parties require explicit acknowledgement of NOR (e.g. counter-signed by the charterer’s agent within X hours); others provide for deemed acceptance (NOR is deemed accepted if not rejected within Y hours of tender).
Rejection
When the charterer (or agent) rejects the NOR, the rejection must:
- Be in writing.
- Identify the specific defect.
- Be sent within a reasonable time (some charter parties specify a maximum response time).
Common rejection grounds:
- Vessel not actually arrived at the contractual point.
- Vessel not actually ready (e.g. holds not clean).
- Free pratique not granted (where required).
- Customs clearance not obtained (where required).
- Charter party requires berthing first (no WIBON).
- NOR tendered outside office hours (laytime may still start at next opening).
Re-tender
After rejection (or if the master discovers a defect), the master rectifies the issue and re-tenders a fresh NOR. The fresh NOR starts laytime from its own deemed delivery time. The intervening time (rectification time) is typically the shipowner’s account.
NOR in different vessel types
Dry bulk
For bulk carriers, NOR readiness typically requires:
- Cargo holds clean and dry.
- Hatches operable.
- Bilges clean.
- Hold inspection passed (typically by a port surveyor).
The hold cleaning standards depend on the cargo (e.g. grain requires very clean holds; iron ore tolerates more residue).
Tanker
For chemical tankers and crude oil tankers, NOR readiness typically requires:
- Cargo tanks clean to the required standard (typically water-white wall wash for high-spec chemicals; less stringent for crude).
- Inert gas system operational.
- Pumps tested.
- Manifolds connected.
- Wall wash certificate (where required).
The wall wash test for chemical tankers can take 6 to 24 hours; the master tenders NOR only after the wall wash is complete and the certificate issued.
LNG carrier
For LNG carriers, NOR readiness includes:
- Cargo tanks at the required temperature (cold for loading; emptied and warm for discharging).
- Boil-off gas system functional.
- Custody transfer measurement system calibrated.
Container ship
For container ships, NOR is less of a contractual issue (most container shipping is on liner schedule rather than voyage charter).
NOR disputes
Common dispute types
- WIBON applicability: was WIBON properly invoked? Did the berth become available before NOR was tendered?
- Free pratique: was free pratique granted before or after NOR? Charter party WIFPON clauses are critical.
- Hold cleanliness: was the hold actually clean when NOR was tendered? Subsequent rejection by surveyor disputes the original tender.
- Tank cleanliness for tankers: similar issue for tanker wall wash.
- Office hours interpretation: which time zone? Which office? Local holidays counted?
- Tendering channel: was email sufficient when the charter party said “telex”?
Resolution
Disputes are resolved through:
- Direct negotiation.
- Independent surveyor (for cleanliness disputes).
- Port records (for arrival timing).
- Arbitration (LMAA, SCMA, SMA).
Notable cases:
- The Achilleas (2008): addressed liability for late NOR causing follow-on charter loss.
- The Stolt Spur (2002): addressed the WIPON / WIBON distinction.
- The Massalia (1962): foundational case on arrived ship status.
Charter party variations
Standard forms
Most standard voyage charter forms include detailed NOR provisions:
- GENCON 2022: Clause 6 (Loading and Discharging) with NOR provisions, BIMCO LAYTIMEDEFS 2013 incorporated.
- Asbatankvoy: Clause 6 with detailed tanker NOR rules.
- Shellvoy 6: Part 2 Clause 13 with comprehensive NOR provisions.
- BPVOY 5: Clause 17 with similar coverage.
- Synacomex 2000: Clause 9 grain-specific NOR.
Amendments
Common bespoke amendments:
- “WIBON, WIPON, WIFPON, WCCON” combined: maximum flexibility for the shipowner.
- “Office hours: 0800-1800 Monday to Saturday inclusive”: extended availability.
- “NOR may be tendered by email to designated charterer’s email address”: modernised channel.
- “Free pratique deemed granted unless rejected within 6 hours”: rebuts the WIFPON requirement.
Implications
Shipowners
For shipowners, NOR is the trigger for revenue recognition. Master training emphasises:
- Validity check before tender.
- Documentary discipline.
- Re-tender procedures.
- Coordination with port agent.
The shipowner’s demurrage department reviews each NOR for validity before pursuing claims.
Charterers
For charterers, NOR scrutiny is a cost-control discipline:
- Real-time review of incoming NORs against charter party terms and port reality.
- Prompt rejection of defective NORs.
- Documentation of any defects.
- Coordination with cargo loaders/dischargers to ensure operations can begin promptly when laytime starts.
Brokers
Charter party brokers help by:
- Drafting clear NOR clauses tailored to the trade.
- Advising on standard market amendments (WIBON etc.).
- Mediating disputes about NOR validity.
P&I clubs
P&I clubs cover the shipowner for some NOR-related liabilities (e.g. cargo claims arising from defective NOR leading to operations starting when the vessel was not actually ready).
See also
Additional calculators:
Additional related wiki articles:
Charter party and commercial frameworks
- Laytime
- Demurrage
- Statement of Facts
- Reversible laytime and despatch
- Bill of lading
- BIMCO CII clauses
- Cargo securing manual
- Cargo draught survey for bulk
Regulatory and reporting
- SOLAS Convention
- MARPOL Convention
- MARPOL Annex VI
- ISM Code
- ISPS Code
- Classification society
- IMSBC Code
- IBC Code
- EU MRV Regulation
- EU ETS for shipping
- FuelEU Maritime
Voluntary frameworks
Operational efficiency
- Just-in-time arrival
- Weather routing
- Slow steaming
- Trim optimisation
- Wind-assisted propulsion
- Air lubrication systems
- Bulbous bow retrofits
- Energy-saving devices
Marine fuels
- LNG as marine fuel
- Methanol as marine fuel
- Ammonia as marine fuel
- Hydrogen as marine fuel
- Biofuels in shipping
Ship types
Calculators
- NOR validity check calculator
- NOR office-hours adjustment calculator
- WIBON arrival calculator
- Free pratique grace period calculator
- Laytime calculator
- Demurrage calculator
- Statement of Facts builder
- Calculator catalogue
References
- BIMCO. BIMCO Laytime Definitions for Charterparties (LAYTIMEDEFS) 2013. BIMCO, 2013.
- BIMCO. GENCON 2022: Voyage Charter Party. BIMCO, 2022.
- BIMCO. Asbatankvoy: Tanker Voyage Charter Party. BIMCO and Asbatankvoy Committee.
- Shell. Shellvoy 6: Shell Voyage Charter Party. Shell, 2014 with subsequent updates.
- BP Shipping. BPVOY 5: BP Voyage Charter Party. BP Shipping, 2008 with subsequent updates.
- BIMCO. Synacomex 2000: Grain Voyage Charter Party. BIMCO and FOSFA, 2000.
- Schofield, John. Laytime and Demurrage, 8th edition. Informa Law, 2021.
- Tiberg, Hugo. The Law of Demurrage, 5th edition. Sweet and Maxwell, 2018.
- Cooke, Julian and others. Voyage Charters, 5th edition. Informa Law, 2022.
- The Achilleas (Transfield Shipping v. Mercator Shipping) [2008] UKHL 48: liability for late NOR causing follow-on charter loss.
- The Stolt Spur (Stolt Tankers Inc v. Landmark Chemicals SA) [2002] EWHC 17 (Comm): WIPON/WIBON distinction.
- The Massalia (Comptoir d’Achat et de Vente du Boerenbond Belge SA v. Luis de Ridder Limitada) [1962]: arrived ship status.
Further reading
- BIMCO. BIMCO Chartering Update. Quarterly publication.
- Maersk Broker. Demurrage Market Report. Maersk Broker A/S, ongoing.
- Clarksons. Shipping Intelligence Weekly. Clarksons Research, ongoing.
- North P&I Club. Loss Prevention Guide on Notice of Readiness. North P&I Club, 2020.