Notice of Readiness

What it does

A notice of readiness, usually shortened to NOR, is the formal statement by which the master tells the charterer or its agents that the ship has reached the agreed point, is physically and legally ready to work cargo, and is therefore available to begin loading or discharging. It is the trigger that, once the contractual conditions attached to it are satisfied, sets the laytime clock ticking against the charterer.

Readiness has two halves, and both must be present. Physical readiness means holds or tanks are clean, gear is rigged, and the vessel can actually receive or deliver the cargo in question. Legal readiness means formalities such as customs clearance and, where required, free pratique are in hand so that nothing external prevents work from starting. A notice given before the ship is genuinely ready in both senses is open to challenge and may be treated as invalid.

Commercial effect

Because a valid NOR starts laytime, the moment and manner of its tender directly decide how much demurrage or despatch the parties will ultimately face. A notice tendered an hour earlier, or one accepted rather than rejected, can move a meaningful sum between owner and charterer over the course of a slow port call, so the rules around tender are heavily negotiated and frequently end up in dispute.

The interaction between the notice and the charter type is central. Under a port charter the ship can often tender once it is within the port and at the charterer's disposal even when no berth is free, whereas under a berth charter the vessel usually must reach the berth first. That single distinction can shift the entire risk of port congestion from one party to the other, which is why it is settled deliberately at the fixing stage.

Owner's perspective

The owner wants the freedom to tender a valid notice as early as possible, ideally on arrival at the port whether or not a berth is available, so that waiting time counts against the charterer. Wording that allows tender whether in berth or not, or whether in port or not, serves this aim by detaching readiness from the availability of a berth the owner has no power to control once the ship arrives.

The owner also wants certainty that a tendered notice takes effect without needing later acceptance, together with protection against technical arguments that some minor outstanding formality rendered the ship unready. Clear drafting on where, when, and to whom the notice may be given lets the master protect the owner's time without leaving the notice exposed to rejection on a point of form rather than of substance.

Charterer's perspective

The charterer wants the laytime clock to start only when the vessel is truly ready and positioned where the charterer can actually use it. It resists notices tendered from a distant anchorage, or before holds have passed inspection, because each premature notice transfers the cost of waiting, and of finishing the ship's preparation, onto the charterer rather than the owner who controls the vessel.

Where congestion is likely, the charterer prefers a berth charter and a requirement that the ship be in berth before tendering, keeping the risk of a full port with the owner. Failing that, it negotiates inspection passes, free pratique, and similar conditions into the readiness definition so that a notice cannot bite until genuine readiness has been established and demonstrated to the charterer's satisfaction.

Negotiation points

• Where the NOR may be tendered — on arrival at the port, at an anchorage, or only once in berth — which turns on whether the fixture is a port or a berth charter.
• Whether tender is allowed whether in berth or not and whether in port or not, detaching readiness from berth availability.
• The conditions of readiness: holds or tanks passed, free pratique granted, customs cleared, and whether these must precede a valid notice.
• Permitted hours and method of tender, and whether a notice given outside office hours takes effect at once or at the next opening.
• Whether laytime begins on tender, on acceptance, or only after a fixed notice or turn-time period has elapsed.

Common variations

• Whether in berth or not (WIBON) wording allowing tender before a berth has been reached.
• Whether in port or not (WIPON) wording extending tender to a waiting place outside the port limits.
• Reachable on arrival or always accessible undertakings obliging the charterer to provide a berth the ship can reach without delay.
• A fixed notice or turn-time period that must run after a valid notice before laytime actually starts to count.