Despatch is defined as which of the following?

• A. Payment for cargo insurance reduction.
• B. Benefit to the charterer when loading/discharging is completed earlier than the allowed time.
• C. A separate fee charged for late delivery.
• D. A conversion rate for freight charges.

Answer: (B)

Despatch is the financial reward that arises when loading or discharging a vessel is completed within the laytime—the time allowed in the charter party. When the work finishes before the laytime ends, time is saved, and the shipowner pays despatch money to the charterer at the agreed rate, recognizing the efficiency and reduced port time. This concept sits opposite to demurrage, which applies when operations run past the laytime and a charge is incurred for the extra time. The other options don’t describe this time-saving incentive: one relates to insurance, another to penalties for delay (late delivery), and another to a currency conversion for freight.