Which statement about despatch and demurrage is true?

Which statement about despatch and demurrage is true?

• A. Despatch is a penalty charged for late discharge.
• B. Despatch is paid when loading/discharging takes longer than allowed.
• C. Despatch is a payment to the charterer when operations finish earlier than the allowed time.
• D. Despatch is the fee for additional port calls.

Answer: (C)

Despatch and demurrage are time-based incentives in a voyage charter. Laytime sets the allowed period to load and discharge cargo. If operations finish before this window ends, a despatch payment is made by the shipowner to the charterer as a reward for saving time, which helps the vessel be released sooner. If operations run over the laytime, demurrage is charged by the shipowner to the charterer for the extra time spent in port. The statement that despatch is a payment to the charterer when operations finish earlier than the allowed time is the accurate description, reflecting this time-saving incentive. It isn’t a penalty for delays, and it isn’t related to fees for additional port calls.

Despatch and demurrage are time-based incentives in a voyage charter. Laytime sets the allowed period to load and discharge cargo. If operations finish before this window ends, a despatch payment is made by the shipowner to the charterer as a reward for saving time, which helps the vessel be released sooner. If operations run over the laytime, demurrage is charged by the shipowner to the charterer for the extra time spent in port. The statement that despatch is a payment to the charterer when operations finish earlier than the allowed time is the accurate description, reflecting this time-saving incentive. It isn’t a penalty for delays, and it isn’t related to fees for additional port calls.