Section 6.3 The Notice of Readiness (NOR): Issuing and Validity

The Notice of Readiness (NOR) is a pivotal document in tramp shipping, particularly under voyage charter parties. It is the formal declaration by the Master to the charterers (or their agents/shippers) that the vessel has arrived at the specified load or discharge port (or berth, as the case may be) and is, in all respects, ready to commence cargo operations. The valid tender of the NOR is usually the trigger for the commencement of laytime – the period allowed in the charter party for loading or discharging cargo. Therefore, the timing, wording, and validity of the NOR have direct and significant financial implications, often leading to disputes if not handled correctly. For the Master, understanding the legal and practical requirements for issuing a valid NOR is a critical aspect of protecting the shipowner’s commercial interests.

1. Definition and Purpose of the NOR:

Definition: The NOR is a written notice (though sometimes verbal followed by written confirmation is acceptable if allowed by the C/P) given by the Master (or the ship’s agent on behalf of the Master) to the charterers, shippers, receivers, or their agents, stating that the vessel has arrived at the designated place for loading/discharging and is ready to perform her cargo obligations under the charter party.

Primary Purpose: To signify the vessel’s readiness and availability to the charterer, thereby starting the “laytime clock.” Laytime is the time allocated to the charterer for loading or discharging the cargo without incurring additional costs (demurrage). If cargo operations are completed within the allowed laytime, the charterer may earn despatch money (a bonus). If operations exceed the allowed laytime, the charterer typically pays demurrage (a penalty) to the shipowner for the extra time used.

Contractual Document: The NOR is a contractual document, and its requirements are primarily dictated by the terms of the governing charter party.

2. Key Requirements for a Valid NOR:

For an NOR to be valid and thus effective in starting laytime, three fundamental conditions generally need to be met, unless the charter party specifies otherwise (which it often does in detail):

A. The Vessel Must Be an “Arrived Ship”:

Meaning: The vessel must have reached the geographical destination specified in the charter party where she is at the immediate and effective disposition of the charterer. The definition of an “arrived ship” depends on the specific wording of the C/P:

Port Charter Party: If the C/P names a port (e.g., “Port of Rotterdam”), the vessel is generally considered “arrived” once she is within the commercial limits of that port and at the charterer’s disposal, even if she cannot proceed immediately to a berth (e.g., due to congestion). This often means being within the port’s legal, fiscal, and administrative limits.

Berth Charter Party: If the C/P names a specific berth or requires the vessel to proceed to a berth “as ordered” by the charterer, the vessel is generally not considered “arrived” until she is actually in that berth. If the berth is unavailable upon arrival at the port, the vessel may have to wait, and laytime might not commence until she is berthed, unless specific clauses in the C/P allow NOR to be tendered from a waiting place (e.g., “Whether In Berth Or Not – WIBON,” “Whether In Port Or Not – WIPON,” “Whether In Free Pratique Or Not – WIFPON,” “Whether Customs Cleared Or Not – WCCON”).

“Reachable on Arrival” / “Always Accessible” Clauses: These clauses place an obligation on the charterer to nominate a berth that the vessel can reach and occupy upon her arrival. If such a berth is not available, the Master may be entitled to tender NOR from a usual waiting place.

Master’s Action: The Master must carefully check the C/P to determine the precise arrival obligations before tendering NOR.

B. The Vessel Must Be Ready to Load or Discharge in All Respects:

Physical Readiness:

Cargo Holds: This is a critical aspect for bulk carriers. The holds must be clean, dry, and in all respects suitable for receiving the nominated cargo, meeting the standard specified in the C/P (e.g., grain clean, normal clean). If holds fail inspection after NOR is tendered, the NOR may be deemed invalid, or laytime may not count until the holds are passed.

Cargo Gear (if a geared vessel and gear is to be used): Ship’s cranes or derricks must be rigged, tested, and ready for immediate operation if they are to be used for cargo work.

Hatch Covers: Must be ready to be opened (or already open if customary and safe).

Other Equipment: Any other vessel equipment necessary for the cargo operation must be ready.

Legal Readiness (Free Pratique and Customs Clearance):

Free Pratique: Permission granted by port health authorities for the vessel to interact with the shore, signifying she is free from contagious diseases. Traditionally, a vessel needed to have free pratique before NOR could be valid. However, many modern C/Ps include “WIFPON” (Whether In Free Pratique Or Not) clauses, allowing NOR to be tendered before formal pratique is granted, provided any delay in obtaining it is not due to the vessel’s fault.

Customs Clearance: Similar to free pratique, customs entry/clearance was traditionally a prerequisite. “WCCON” (Whether Customs Cleared Or Not) clauses may modify this.

The Master must ensure all necessary health, immigration, and customs pre-arrival formalities are completed promptly to avoid delays attributable to the vessel.

Documentation Readiness: All necessary ship’s certificates and cargo-related documents (as far as they are the ship’s responsibility at this stage) should be in order.

The “In All Respects Ready” Test: This is an objective test. The vessel must be genuinely ready, not just believed to be ready by the Master. Minor deficiencies unrelated to cargo operations might not invalidate readiness, but anything that would prevent immediate commencement of loading/discharging upon the charterer’s instruction usually will.

C. The NOR Must Be Properly Tendered (Given):

To the Correct Party: The C/P will specify to whom the NOR should be tendered (e.g., charterers, shippers, receivers, or their nominated agents).

In the Correct Manner: The C/P may specify the method (e.g., in writing, by email, cable, telex). Written NOR is always preferable for record purposes, even if verbal notice is initially given.

At the Correct Time (Permitted Hours): Some C/Ps restrict the tendering of NOR to office hours or specific days (e.g., “excluding Saturdays, Sundays, and holidays”). If NOR is tendered outside these hours, it may only become effective from the commencement of the next permitted period.

Content of the NOR: The NOR should clearly state:

Vessel’s name.

Date and time of arrival at the specified point (port/berth/waiting place).

Date and time the NOR is tendered.

A clear statement that the vessel is ready in all respects to load/discharge the nominated cargo as per the C/P.

Reference to the relevant C/P.

Sometimes, details like quantity of cargo to be loaded/discharged, or number of hatches ready.

Receipt: It is good practice to obtain a signed acknowledgement of receipt for the NOR from the party to whom it is tendered, noting the date and time of receipt.

3. Impact of NOR on Laytime:

Commencement of Laytime: The valid tender of NOR is usually the event that starts the laytime clock, though the exact commencement often depends on further C/P clauses:

“Laytime to commence X hours after NOR tendered and accepted…”

“Laytime to commence at 1300 if NOR tendered before noon, or 0800 next working day if NOR tendered after noon…” (These are common “turn time” provisions).

Effect of Weekends/Holidays: C/P clauses like “SHEX” (Sundays and Holidays Excepted) or “FHEX” (Fridays and Holidays Excepted) will determine if laytime counts on these days, even after NOR is valid.

Invalid NOR: If an NOR is tendered when the vessel is not, in fact, an “arrived ship” or “ready in all respects,” it is generally considered invalid and a nullity. A new, valid NOR must be tendered once the conditions are met, and laytime will only commence based on this subsequent valid NOR. This can result in significant loss of time/money for the shipowner.

“Accepted NOR”: Sometimes charterers or agents will “accept” an NOR. While this is good evidence that it was received, it does not necessarily mean they agree it is valid. They may later dispute its validity if the underlying conditions (arrival, readiness) were not met. However, if they begin loading/discharging without protesting an NOR they know to be technically invalid, they might be deemed to have waived the defect.

4. Common Issues and Disputes Related to NOR:

Premature Tendering: Tendering NOR before the vessel is truly an “arrived ship” or fully ready (e.g., holds not yet passed inspection).

Disputes over “Arrived Ship” Status: Particularly in congested ports or where the C/P wording is ambiguous regarding waiting places.

Hold Cleanliness Failures: If holds fail inspection after NOR is tendered, the NOR is usually invalidated.

Delays in Obtaining Free Pratique or Customs Clearance: If due to vessel’s fault, readiness can be challenged.

Incorrect Tendering Procedures: Not tendering to the right party, at the right time, or in the right format.

Ambiguous C/P Clauses: Poorly drafted C/P clauses regarding NOR and laytime commencement are a frequent source of disputes.

Retraction and Re-tendering: If an NOR is found to be invalid, it should generally be considered as never having been given. A new NOR must be tendered once the vessel is compliant.

5. Master’s Role and Responsibilities Regarding NOR:

The Master plays a pivotal role in the NOR process, safeguarding the owner’s commercial interests.

Thorough C/P Review: Understand all C/P clauses relating to arrival, readiness, NOR tendering, and laytime commencement.

Ensure Actual Readiness: Do not tender NOR until genuinely satisfied that the vessel is an “arrived ship” (as per C/P) AND is ready in all respects to load/discharge. This includes passing internal hold inspections.

Coordinate with Agent: Liaise closely with the ship’s agent regarding local practices for NOR tendering, port arrival status, and communication with charterers/shippers.

Accurate Wording and Timing: Ensure the NOR is worded correctly, contains all necessary information, and is tendered at the earliest permissible time once conditions are met.

Obtain Proof of Tender/Receipt: Always get written acknowledgement of the NOR, noting date and time of receipt.

Maintain Records: Keep copies of the tendered NOR, any acknowledgements, and log all relevant times and communications in the ship’s logbook and Statement of Facts.

Issue Letter of Protest (LOP) if Necessary:

If the charterer/agent refuses to accept a validly tendered NOR.

If there are undue delays by charterers in commencing cargo operations after NOR is accepted.

If there are disputes over hold readiness that the Master believes are unjustified.

Communicate with Owners/Company: Keep the company informed of NOR tendering, acceptance, and any disputes or issues.

In conclusion, the Notice of Readiness is a small document with a huge impact. Its correct and timely issuance, based on genuine vessel readiness and arrival status as defined by the charter party, is fundamental to the commercial success of a voyage. The Master’s diligence, understanding of contractual terms, and proactive communication are key to navigating this critical process effectively and protecting the shipowner’s financial interests.