Despatch
Meaning
Despatch is money the owner pays back to the charterer for finishing cargo operations faster than the laytime allowed.
Also written as Dispatch money
Despatch explained
Despatch is the mirror of demurrage: a reward for saving the ship time in port. When a charter provides for it, the rate is usually half the demurrage rate, and it can be calculated either on all time saved or only on working time saved, which gives quite different results.
Despatch is common in dry bulk but rare on tanker voyage charters, where most standard terms provide for demurrage only. If it is agreed on a tanker fixture, the basis and rate need to be written into the recap.
Watch out for
“Despatch on all time saved” and “despatch on working time saved” can differ by a day or more on the same voyage.
Related terms
Demurrage
Demurrage is the agreed daily amount the charterer pays the owner for every day the ship is kept in port beyond the laytime allowed.
Laytime
Laytime is the time the charterer is allowed, without paying extra, to load and discharge the cargo under a voyage charter.
Reversible laytime
Reversible laytime means the hours allowed for loading and discharging are added together, so time saved at one port can be used at the other.