Dispatch

Dispatch is a sum of money paid by a shipowner to a charterer when the charterer completes loading or discharging operations in less than the agreed laytime, effectively rewarding the charterer's efficiency in turning the vessel around quickly. The dispatch rate is usually calculated per day or pro rata, at a rate specified in the charter party — conventionally half the demurrage rate, though the exact rate is a matter of commercial negotiation and the charter party terms govern. Dispatch acts as a commercial incentive for the charterer to operate efficiently and minimise the vessel's time at berth, which benefits the shipowner through faster vessel turnover and the charterer through reduced operational costs. In practice, dispatch payments are less frequent than demurrage charges, as the operational efficiency required to complete before the laytime deadline is demanding. Time saved is calculated from the completion of cargo operations back to the expiry of laytime. BIMCO standard charter party forms define the dispatch provisions, and parties must ensure the charter party clearly distinguishes whether dispatch applies at the loading port, the discharging port, or both, and whether on working time saved or all time saved.