Dispatch money is a payment made by a ship-owner to a charterer when cargo is unloaded from a vessel more quickly than specified in their agreement. This payment serves as a reward for the charterer's efficiency in unloading the goods ahead of schedule.
Dispatch money is primarily used in maritime law, particularly in shipping and chartering agreements. It incentivizes charterers to expedite the unloading process, which can benefit both the ship-owner and the charterer. Users can manage related legal documents, such as charter agreements, through resources like US Legal Forms.
Here are a couple of examples of abatement:
For instance, if a charterer unloads cargo two days earlier than the agreed timeline, they may receive dispatch money calculated at a specified daily rate for those two days. (hypothetical example)
| Term | Definition | Key Differences |
|---|---|---|
| Demurrage | Fees charged to the charterer for delays in unloading cargo. | Demurrage is a penalty, while dispatch money is a reward. |
| Laytime | The period agreed upon for loading and unloading cargo. | Laytime defines the timeframe, while dispatch money incentivizes early completion. |
If you are a charterer and believe you may be entitled to dispatch money, review your charter agreement for specific terms regarding payment. If necessary, consider using US Legal Forms to access templates for drafting or modifying your agreement. For complex situations, consulting a legal professional is advisable.
Browse our library of 85,000+ state-specific legal templates.
It is a payment made to a charterer for unloading cargo ahead of schedule.