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22-504: [REDACTED] Look up despatch in Wiktionary, the free dictionary. Despatch may refer to: Business [ edit ] despatch, the inverse of demurrage , paid by the shipowner to the charterer under a voyage charter when a ship is loaded or unloaded in less time than allowed in the charter party Merchants Despatch , a refrigerated freight transporting company, which founded

44-490: A no fault delay by submitting a demurrage charge. Criteria for allowable demurrage, payment conditions, and payment terms for demurrage are typically prenegotiated and accepted by the vendor via contract prior to conduct of business. Some vendors allow free no-cost time for limited hour(s) when demurrage occurs, others do not allow free time for delays. The demurrage charge is normally an hourly rate. Unforeseeable until delivery, costs of delays are sometimes separately invoiced from

66-450: Is considered "demurrage". Haulers will usually charge an hourly rate for each hour after the allowed time. Demurrage can also refer to the cost levied by shipping lines to cover redecoration of the container after use by the merchant, but it could also be the charges by the shipping line to customers for not returning the container in a reasonable time. On railways, it is the charge on detention of trucks (or rolling stock ), either to

88-455: Is correct since both refer to the same concept, which is the late return of equipment supplied by one party to another for the purpose of carrying a cargo. However, the actual regime of container demurrage is still to be determined precisely. In container haulage, customers are given a set period in their contract to tip (unload) their container delivery. Acceptable times for tipping are usually between 3 and 4 hours; time spent on site after that

110-415: Is determined by a Notice of Readiness (or "NOR"), which the master or agent of the ship must give to the port when the ship has arrived at the port of loading or discharge. The charterparty contract determines the precise meaning of "arrival". Usually, "arrival" is when the ship has arrived at the port and is ready in all respects to load or discharge; but it may be, say, when the ship has passed buoy #2 in

132-453: Is often a daily amount agreed between charterers and ship owners. Ideally, the demurrage fee (per day in US dollars) covers the daily time charter rate, daily voyage costs, and the ship owner’s risk premium. The inverse of demurrage is despatch . If the charterer requires the use of the vessel for less time than the laytime allowed, the charter party may require the shipowner to pay despatch for

154-425: Is required before laytime commences. Another case in 2011, Suek AG v Glencore International AG (The "Hang Ta"), addressed a difference of interpretation between the parties to the contract as to giving of a NOR at "a usual waiting place" instead of at the intended discharge berth. The intended berth was occupied, and also access was affected by inclement weather conditions, so there were two contending reasons for

176-400: Is the term used to quantify the time allowed within which an operation is allowed to be made. Demurrage is laytime consumed less laytime allocated (if any). The master of the ship must give a Notice of Readiness (NOR) to the charterer when the ship has arrived at the port of loading or discharge. The NOR informs the charterer that the ship is ready to load or discharge. The date and time of

198-465: The NOR determines when laytime is to commence. At the end of the stay in port, the port agent draws up a Statement of Facts , setting out a log of events during the ship's stay in port. The Statement of Facts enables a time sheet to be drawn up and signed by the master and the shipper or receiver of the cargo. The time sheet enables laytime and therefore demurrage or despatch to be calculated. Because

220-414: The approach channel, or once the vessel has pass through lock gates. If the charterer does not comply with the NOR, the carrier may cancel the contract and seek damages . If the charterer's delay means that laytime is exceeded, a predetermined penalty (i.e. liquidated damages ) called " demurrage " is incurred. If the whole period of laytime is not needed, a refund called "despatch" may be payable by

242-402: The arrival of the vessel; (b) the vessel thereafter arrives and is, or is accepted to be, ready to discharge to the knowledge of the charterers; (c) discharge thereafter commences to the order of the charterers or receivers without either having given any intimation of rejection or reservation in respect of the notice of readiness previously served or any indication that further notice of readiness

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264-456: The cost of deliverable. In banking, demurrage is the charge per ounce made by the Bank of England in exchanging coin or notes for bullion. Laytime In commercial shipping , laytime is the amount of time allowed, measured in days (or portions thereof), hours, or even tides, within a voyage charter for the loading and unloading of cargo. Under a voyage charter or time charter,

286-404: The delayed berthing. Glencore argued that the NOR was given too early and was therefore invalid, because the berth's occupation by another vessel was not the sole reason operating to affect berthing, but the court rejected their argument and supported SUEK. "Laytime" should not be confused with "Lay days". The latter refers to the period within which the shipowner should make the vessel "ready" to

308-471: The name of various British Royal Navy ships USS Despatch , the name of various United States Navy ships Dispatch (sternwheeler) , alternatively spelled Despatch , a steamboat in Oregon, United States, in the early 20th century See also [ edit ] Dispatch (disambiguation) Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with

330-421: The shipowner is responsible for operating the vessel, and the master and crew are the employees of the shipowner, not the charterer. However, once the vessel has "arrived" at a port the charterer then assumes responsibility for the loading and unloading of cargo and has a period of laytime in which to carry that out. The actual loading may be performed by a third-party stevedore . The moment that laytime commences

352-521: The shipowner to the charterer . Despatch is normally paid at 50% of the demurrage rate, but that depends on the terms of the charterparty . The ship may thus be able to leave port early. Despatch does not normally apply to tanker charters. The legal case of Flacker Shipping Ltd. v Glencore Grain Ltd. (the Happy Day ) raised a question regarding the need for a valid NOR to be issued where an earlier NOR

374-417: The shipper for holding the car (laden or not), or to the connecting railroad(s) while the car is empty and returning to the home road (in either case, as a way to encourage speedy unloading and return of empties to improve utilisation of rolling stock). In business, demurrage is a delay in delivery of a product via delivery truck. When a delay occurs with product delivery, the delivery party can elect to claim

396-457: The supply of a shipping container to a merchant has a similar nature to the contract of a supply of a vessel to a voyage charter, the industry refers to this container usage beyond the time allowed as Container Demurrage. This extra usage usually entitles the container supplier (usually the shipping carrier) to require a payment from the merchant. In principle, it can be considered that the similarity between vessel demurrage and container demurrage

418-421: The time saved. In commercial ship chartering , demurrage is an ancillary cost that represents liquidated damages for delays. It occurs when the vessel is prevented from loading or discharging cargo within the stipulated laytime (see affreightment : under Charter-parties). In the oil industry, it refers to the excess time taken to discharge or load, as the case may be, in excess of the allowed laytime. Laytime

440-495: The title Despatch . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Despatch&oldid=1179973481 " Categories : Disambiguation pages Ship disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Demurrage The demurrage fee

462-661: The village of Despatch, New York Military terminology [ edit ] Despatch rider , a military motorcycle courier Mentioned in despatches , a military tradition for commending notable achievements Military communications , particularly historically Places [ edit ] Despatch, Eastern Cape , a small town near Uitenhage and Port Elizabeth in South Africa Despatch, New York , United States, village now known as "East Rochester" Ships [ edit ] Despatch (brig) , ran aground near Newfoundland in 1828 HMS Despatch ,

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484-403: Was submitted but not valid. Potter LJ , supported by Lady Justice Arden and Sir Denis Henry , ruled that Laytime can commence under a voyage charterparty requiring service of a notice of readiness when no valid notice of readiness has been served in circumstances where (a) a notice of readiness valid in form is served upon the charterers or receivers as required under the charterparty prior to

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