What is a despatch payment and under what conditions is it paid?

• A. A payment to the shipper for delays caused by port congestion.
• B. A despatch payment rewards the shipper if loading/unloading completes within laytime, as specified in the charter party.
• C. A fee charged by carrier for detaching containers at destination.
• D. A penalty for late completion of loading.

Answer: (B)

Despatch payment is a reward paid by the shipowner to the charterer (shipper) when the loading or unloading is completed within the laytime allowed in the charter party. The laytime is the time allotted for these operations, and if the work finishes before that period ends, a despatch amount is payable at the rate specified in the charter party. This incentive encourages faster handling at the port. It is not paid for delays (that would be demurrage), nor is it a fee for detaching containers or a penalty for late loading.