Where the word comes from
Laycan combines laydays, the days allowed for the cargo operation to begin, and cancelling, the last date on which the charterer will accept the vessel. Together they define a narrow band of dates, often two to five days, agreed when the cargo and the ship are matched.
Notice of readiness and laytime
When the vessel arrives and is ready, the master tenders a Notice of Readiness (NOR). Once the NOR is valid and any agreed time has passed, laytime begins to count. Laytime is the amount of time allowed, free of extra charge, for loading or discharging the cargo.
Demurrage and despatch
If the cargo operation takes longer than the allowed laytime, the charterer usually owes demurrage, a daily penalty for detaining the vessel. If operations finish early, some contracts pay despatch to the charterer. A clear laycan and accurate port scheduling help keep these costs down.
- Laydays: operations may start.
- Cancelling date: last date to accept the vessel, else the charterer may cancel.
- Demurrage: paid when laytime is exceeded.
Why it matters in a deal
The laycan also often anchors the pricing period, because the bill of lading date falls inside it. Agreeing a realistic laycan is part of coordinating cargo and vessel; see how crude pricing works.