Demurrage and despatch come from the same laytime clock but point in opposite directions. Here's who pays whom, how despatch is priced, and why tankers often have no despatch at all.
Demurrage and despatch are two sides of the same clock. Both come from the same question — did the vessel finish loading or discharging within the allowed laytime? — but they point in opposite directions.
The charterer pays the owner. When the vessel is detained beyond the allowed laytime, the charterer compensates the owner at the agreed daily demurrage rate. It reflects the cost of the ship sitting idle at the charterer's account.
The owner pays the charterer. When loading or discharging finishes early, some charters reward the charterer for the time saved. Despatch is typically set at half the demurrage rate, and is usually calculated on time saved (all laytime saved) or, less commonly, all time saved including periods that wouldn't otherwise count.
Despatch is common in dry-bulk charters. In the tanker trade it is frequently not payable — many tanker charter parties provide for demurrage only, with no despatch on the reverse. Always check the charter party: the absence of a despatch clause means finishing early earns the charterer nothing, even though being late still costs demurrage.
Allowed laytime 72 hours; demurrage rate USD 24,000/day. If the vessel uses 84 hours, the charterer owes 12 hours of demurrage (12 ÷ 24 × 24,000 = USD 12,000). If it uses only 60 hours and the charter provides despatch at half rate, the owner owes 12 hours of despatch at USD 12,000/day = USD 6,000.
DemurrageIQ reads the SOFs, calculates laytime and drafts your counter-claim letter — in minutes.
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