Notice of Readiness (NOR) in Petroleum Trading - What It Means for Your Timeline

Notice of Readiness (NOR) is a critical moment in petroleum vessel transactions. Here's what it is and why it matters.

What is Notice of Readiness (NOR)?

NOR is a formal notification from the vessel's captain that the vessel has arrived and is ready to load or unload cargo.

Think of it as: "We're here and ready to start - the clock is now ticking."

Why NOR Matters

NOR triggers the laytime clock:

• Laytime = The free time allowed for loading/unloading
• NOR marks when laytime starts counting
• When laytime expires, demurrage begins (expensive penalties)

Example:

• Contract allows 72 hours laytime
• Vessel arrives and issues NOR at 08:00 Monday
• Laytime clock starts
• Must complete loading/unloading by 08:00 Thursday
• If you finish Friday, you pay demurrage for 24 hours delay

NOR starts the countdown.

When NOR is Issued

Typical sequence:

1. Vessel sailing to port
2. Vessel arrives at port or anchorage
3. Captain checks vessel status (ready to load/unload)
4. Captain issues NOR to port, terminal, and relevant parties
5. NOR accepted (if vessel truly ready)
6. Laytime begins

NOR is issued when vessel is:

• Physically arrived at port/berth/anchorage
• Ready to load or unload
• All necessary preparations complete
• Captain confirms readiness

What NOR Contains

Essential information:

✅ Vessel name and details
✅ Date and time of arrival
✅ Location (berth, anchorage, port)
✅ Cargo to be loaded/unloaded
✅ Confirmation of readiness
✅ Captain's signature
✅ Contact information

Example NOR:

"M/V OCEAN TANKER arrived at Fujairah anchorage on 15 October 2025 at 14:00 hours, ready to discharge 10,000 MT EN590 diesel fuel. All tanks and equipment ready. NOR tendered."

NOR Timing

When can NOR be tendered?

Depends on charter terms:

Arrival terms:

"NOR on arrival":

• Can tender NOR when vessel reaches port area
• Even if waiting for berth
• Common term

"NOR on berth":

• Can only tender NOR when vessel is at berth
• More favorable to charterer/buyer
• Less common

"NOR in port":

• Between arrival and berth
• When vessel is within port limits

Time restrictions:

"NOR anytime":

• Can tender NOR 24/7
• Laytime counts continuously

"NOR during office/working hours only":

• Can only tender NOR during specified hours
• E.g., Monday-Friday 08:00-17:00
• More favorable to receiver

NOR and Laytime Calculation

After NOR accepted:

Running hours:

• Laytime counts only during working hours
• Example: 08:00-17:00 weekdays
• 72-hour laytime might take 9 calendar days

Continuous hours:

• Laytime counts 24/7
• 72-hour laytime = 3 calendar days exactly

Weather working days:

• Bad weather doesn't count
• Only good weather working time counts

Excepted periods:

• Weekends, holidays might not count
• Specified in charter party

Check your contract for how laytime is calculated.

What Happens After NOR

Typical sequence:

1. NOR tendered by captain
2. NOR received by terminal/port
3. NOR accepted (if vessel actually ready)
4. Laytime officially starts (per contract terms)
5. Berth allocated (if not yet at berth)
6. Operations begin (loading or discharge)
7. Operations complete
8. Laytime ends
9. Calculate time used
10. Demurrage or despatch calculated if applicable

NOR for Buyers (Discharge Port)

If you're receiving cargo (CIF):

What NOR means for you:

You have limited time to:

• Complete customs clearance
• Arrange payment (if not yet paid)
• Arrange discharge operations
• Complete inspection/Q&Q
• Make final decisions

Before laytime expires or you pay demurrage.

Your responsibilities after NOR:

• Monitor laytime countdown
• Expedite all procedures
• Avoid delays
• Be ready for discharge

Delays you might cause:

• Payment not ready
• Customs documents delayed
• Storage tanks not ready
• Inspection delays

All count against your laytime - you pay if exceeded.

NOR Red Flags

❌ Fake NOR before vessel arrival

• Seller provides "NOR" but vessel hasn't arrived
• Check vessel position (marinetraffic.com)
• Real NOR only when vessel physically there

❌ NOR shows unrealistic timeline

• "NOR issued, discharge must complete in 12 hours"
• For 10,000 MT - impossible
• Realistic discharge: 2-4 days depending on rates

❌ Vessel not actually ready

• NOR issued but vessel has equipment problems
• Should only issue NOR when truly ready
• Can be disputed

ETA vs NOR

Don't confuse:

ETA (Estimated Time of Arrival):

• Forecast of when vessel will arrive
• Provided days/weeks in advance
• "Our ETA is 15 October"
• Planning tool, not official

NOR (Notice of Readiness):

• Actual notification vessel is ready
• Issued when vessel arrives
• Triggers laytime
• Legally significant

Sequence: ETA is forecast → Vessel arrives → NOR is issued

How to Prepare for NOR

Before vessel arrives (use ETA to prepare):

✅ Track vessel position

• Use marine traffic websites
• Know when vessel is approaching
• Don't wait for NOR to start preparing

✅ Prepare all documents

• Customs documentation
• Payment ready (if required before discharge)
• Inspection arranged
• Storage arranged

✅ Coordinate with terminal

• Confirm berth availability
• Confirm discharge slots
• Ensure equipment ready

✅ Have team ready

• Decision makers available
• Fast response capability
• No vacation days during vessel arrival

When NOR is issued:

✅ Verify it

• Confirm vessel actually arrived
• Check NOR details correct

✅ Calculate laytime deadline

• NOR time + allowed laytime = deadline
• Mark your calendar
• Allow buffer

✅ Expedite everything

• Fast-track all approvals
• Avoid any delays
• Monitor progress

Laytime Disputes

Common disputes:

When was NOR validly tendered?

• Seller says Monday 08:00
• Buyer says vessel wasn't actually ready until Tuesday
• Affects demurrage calculation

Was laytime calculated correctly?

• Which hours count?
• Were excepted periods correctly excluded?
• Weather delays counted or not?

Who caused delays?

• Port delays vs buyer delays vs seller delays
• Affects who pays demurrage

Prevention:

• Clear charter party terms
• Document everything
• Photos, logs, communications
• Independent surveyors

Bottom Line

NOR = Vessel captain's notice that vessel is ready to load/unload

Why it matters:

• Triggers laytime countdown
• After laytime expires, demurrage charged ($10K-60K+ per day)
• You have limited time to complete operations

When issued:

• When vessel physically arrives
• When vessel is ready
• Per charter party terms

What you should do:

1. Track vessel approach using ETA
2. Prepare everything before NOR
3. When NOR issued, verify it
4. Calculate your laytime deadline
5. Expedite all operations
6. Complete within laytime to avoid demurrage

Don't wait for NOR to start preparing - use ETA to get ready, so when NOR comes you're ready to act fast.

Missing the laytime deadline is expensive - demurrage can cost tens of thousands per day.

Take Action

Understand shipping terminology and timelines before committing to vessel transactions. Submit an RFQ on CommoditiesHub and discuss delivery terms that match your operational capabilities.