Distinguishing “Laycan” And “Expected Ready”
It is important to understand that the chartering terms, "Laycan" and "Expected Ready", relate to the same general subject but are separate and distinct obligations. Laycan stands for laydays commencement and cancelling; it specifies the earliest date on which laytime can commence and the latest date, after which the charterer can opt to cancel the charter party. It is Owner’s obligation to present the vessel ready to load within this window (and, likewise, the charterer is obligated to provide cargo). Conversely, the Expected Ready term narrows the vessel’s anticipated load readiness to a specific date within the Laycan. It is a good faith representation by the owner to the charterer in which charterer relies for scheduling purposes and sales contract obligations. As such, the Expected Ready term adds value.
