Dispatch Clause

The dispatch clause is a clause in charter shipping that corresponds to the demurrage clause. It stipulates that if the charterer can complete the loading and unloading operations ahead of the agreed laytime, the shipowner must pay dispatch money to the charterer based on the time saved. It is mostly used in voyage charter parties, especially in the laytime, demurrage, and dispatch clauses. Points to note: dispatch money is usually half of the demurrage rate, but can be agreed upon by both parties; there are two calculation methods: 'on all time saved' and 'on working time saved'; the commencement, termination, and exceptions to laytime must be clearly defined. The difference from demurrage is that demurrage is paid by the charterer to the shipowner, while dispatch money is paid by the shipowner to the charterer. In addition, the dispatch clause is closely related to the laytime clause; if laytime is not agreed, dispatch money cannot be calculated. Foreign trade practitioners should reasonably assess dispatch money benefits in light of contract terms and actual loading/discharging efficiency to avoid disputes caused by misunderstandings.