TTM15150 - Background material: Shipping contracts

Demurrage and despatch

Demurrage

Demurrage describes an amount of compensation paid by the shipper or voyage charterer to the shipowner for delays beyond the agreed time allowed in the voyage charterparty for loading or unloading. It is normally based on an agreed amount per day.

Despatch

Despatch money is an amount of compensation paid by the shipowner to the shipper or voyage-charterer for loading and/or unloading in less time allowed in the voyage charterparty. It is normally based on, or as a fraction of, the rate for demurrage.