Charter Terms, Laycan Risk, and Demurrage
Voyage economics hinge on contractual details such as laycan windows, loading rates, and demurrage assumptions.
Core Points
- Demurrage can erase nominal margin on physical trades.
- Laycan slippage creates hidden optionality and penalty exposure.
- Execution quality differentiates profitable desks in volatile markets.
Case Studies
Case: Demurrage Cost Overrun
Port delays extended loading time beyond contractual allowances, reducing realized profitability on a nominally positive trade.
Case: Laycan Miss and Recharter Loss
A laycan miss forced recharter at a worse market level, turning a previously hedged structure into a loss-making sequence.
References
Last reviewed: 2026-03-21