Despatch is best described as what in a voyage charter?

Despatch is best described as what in a voyage charter?

• A. Financial incentive paid by the shipowner to the charterer if loading/discharging is quicker than planned.
• B. Penalty charged by the port for fast loading.
• C. Fee paid by the charterer to the shipowner for late loading.
• D. A bonus paid by the charterer to the shipowner for on-time performance.

Answer: (A)

Despatch is money paid by the shipowner to the charterer when loading or discharging is completed before the agreed laytime runs out. It rewards faster-than-planned performance and reduces the time the ship spends in port. It’s not a charge from the port, nor a fee for late loading (that would be demurrage, charged for delays by the charterer to the shipowner), and it isn’t a bonus from the charterer to the shipowner for doing everything on time. The payment direction and purpose align with early completion of loading/discharging.

Despatch is money paid by the shipowner to the charterer when loading or discharging is completed before the agreed laytime runs out. It rewards faster-than-planned performance and reduces the time the ship spends in port. It’s not a charge from the port, nor a fee for late loading (that would be demurrage, charged for delays by the charterer to the shipowner), and it isn’t a bonus from the charterer to the shipowner for doing everything on time. The payment direction and purpose align with early completion of loading/discharging.