← Knowledge Base
Concept

Demurrage and Despatch

Demurrage is liquidated damages the charterer pays the owner for exceeding the allowed laytime; despatch is a reward, usually half the demurrage rate, for completing sooner. Both are computed from the laytime statement.

demurragedespatchconcept

Source: LayGrounded reference. General reference information about a standard charter-party form — not legal advice.