Sea freight stands out as one of the fundamental transportation methods in global trade, offering both cost advantages and high carrying capacity. However, this mode of transport involves some important concepts and procedures unique to it. In this article, we clearly and simply explain key terms frequently encountered in sea freight processes, such as laytime, demurrage, booking note, bill of lading, and manifest.
⚓ What is Laytime (Astarya)?
Astarya refers to the period allocated for completing the loading and unloading operations. This time is determined by agreements between the parties and is usually calculated based on the daily loading/unloading rate.
- It begins as soon as the “Notice of Readiness” is issued. This document officially declares that the vessel is ready for loading or unloading.
- Terms like “Weather Working Days” and “SHEX” (excluding Sundays and holidays) are used to ensure that adverse weather conditions do not affect the laytime period.
- What Happens If the Laytime Expires?
This is where demurrage comes into effect.
🕒 What is Demurrage (Sürastarya)?
Demurrage is a delay fee paid by the shipper to the carrier if the loading or unloading process exceeds the laytime. It is considered similar to a rental fee in container transportation.
- If not specified in the contract, an appropriate fee will be determined by court order.
- This fee is an expense that works against the shipper, not in favor of the carrier.
✅ What is DESPATCH?
If the loading or unloading operation is completed before the laytime period expires, the carrier may charge an early completion bonus, called despatch. This fee is typically half the despatch fee. However, if the phrase “Free Despatch” is used, this payment is not made.
📦 What is the Storage Fee?
It is the rental fee charged by the port operator depending on the time the container waits in the port area.
- The customer pays the storage cost of the full container.
- The agent is responsible for the storage of the empty container.
- For export containers, the first 3 days are free of charge.
It should not be forgotten: The storage period begins upon arrival at the discharge port.
📝 BOOKING NOTE (Preliminary Agreement)
It is a preliminary agreement between the cargo owner and the carrier. It includes:
- Type and amount of cargo
- Loading and destination ports
- It includes information such as the upload date.
If an option period is specified, the document expires at the end of this period. It does not include a transportation commitment.
📃 LOADING ORDER (Mate’s Receipt)
This is the document issued after the Booking Note, which ensures the loading of the cargo onto the ship. Three copies are prepared:
- It is given to the loader.
- Remains on board (controlled by the ship’s captain).
- It is kept on file by the agency.
If there is damage to the packaging or the product, a note is made in this document.
📄 What is a Manifesto?
Your load:
- What it is
- How it was packaged
- It includes all the details such as who it will be delivered to.
It is delivered to customs at the discharge port within 24 hours, and the ship’s cargo is inspected according to this document. A separate manifest is issued for each port.
📌 What is a Bill of Lading?
The bill of lading is a legally binding and valuable document that shows who owns the cargo and under what conditions it is being transported.
Main information included:
- Ship name and captain information
- Carrier and loader information
- Loading and discharge ports
- Type, quantity and condition of the cargo
- Freight (transportation) conditions: Type, quantity and condition of the cargo
🔹 Clean Bill of Lading (Clean B/L): Indicates that there is no damage to the cargo.
🔹 Received Bill of Lading (B/L): Prepared before the cargo is loaded onto the ship.
🔹 Shipment Bill of Lading (Shipped B/L): Issued after the cargo is loaded onto the ship.
💡 The following points must be taken into consideration for bills of lading prepared in accordance with letters of credit:
- The phrase “ON BOARD”, the date and signature must be included.
- Freight payment must be specified: “Freight Prepaid”
- The goods description must be the same as the loading order.
- The delivery port must be written correctly
🛑 For lost bills of lading, the shipowner requests a bank guarantee from the buyer. In Turkey, a five-year bank guarantee is generally required.
🌍 Result: Safe and Trouble-Free Transport with Correct Documentation
In maritime transportation, concepts such as interim, demurrage, and bill of lading are crucial for time, cost, and legal security. Therefore, cargo owners and logistics managers need to be well-versed in the meaning and functioning of these terms.
As Global Trade Logistics Europe, we manage the entire process of our maritime transport services with transparency and ensure the safe transportation of your cargo.
