Why is despatch half of demurrage?
In other words, despatch money is the opposite of demurrage. The reason for the compensation is to reimburse charterers, shippers or consignees for any expenses they may have incurred in order to save time to the vessel. Despatch is not payable if the charterparty does not contain a clause providing for its payment.Click to see…
In other words, despatch money is the opposite of demurrage. The reason for the compensation is to reimburse charterers, shippers or consignees for any expenses they may have incurred in order to save time to the vessel. Despatch is not payable if the charterparty does not contain a clause providing for its payment.Click to see full answer. Keeping this in consideration, what is demurrage and despatch?Charterers compensate the owners for additional time used at the demurrage rate. However if the vessel completes her loading and discharging operations well within the allowed Laytime, the balance unused Laytime is the Despatch. If the vessel exceeds the allowed Laytime she is said to be on demurrage.Secondly, how is demurrage rate determined? Calculation of Demurrage. In the calculation of demurrage amount payable to shipowner, demurrage rate is multiplied by the number of days or part of day in excess of the agreed laytime. For example: Ship exceeded laytime allowed for loading and discharging by 4 days 6 hours 30 mins. Additionally, what does despatch mean in shipping? Despatch refers to the time that the shipowner has been able to save since the charterer completed the cargo operations quicker than anticipated/agreed and was able to despatch (sail) the ship quicker than expected which is to the benefit of the ship owner..What do you mean by demurrage?“Demurrage is a charge levied by the shipping line to the importer in cases where they have not taken delivery of the full container and move it out of the port/terminal area for unpacking within the allowed free days.” Demurrage charges can vary country to country as well as by carrier.
