Dispatch — Income for Early Completion of Loading/Discharging (Laytime Saved)
Recording dispatch money earned when a vessel completes loading or discharging faster than the allowed laytime — typically paid at half the demurrage rate for time saved.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Receivable — Dispatch Money (Laytime Saved × Dispatch Rate) | Asset (+) | 45,000.00 | - |
| Dispatch Income (Earned — Recognized When Laytime is Saved at Completion) | Revenue (+) | - | 45,000.00 |
💡 Accountant's Note
Dispatch is the mirror of demurrage — when a charterer completes cargo operations faster than the allowed laytime, the shipowner pays the charterer DISPATCH MONEY (typically at half the demurrage rate). Example: Laytime allowed = 4 days; Actual time used = 2.5 days; Time saved = 1.5 days; Dispatch rate = $7,500/day (half of $15,000 demurrage); Dispatch payable = 1.5 × $7,500 = $11,250. From the SHIPOWNER's perspective: dispatch is an EXPENSE (paying the charterer for time saved). From a CHARTERER operating on a voyage charter (who has sub-chartered the vessel): dispatch can be INCOME if their sub-charter also has a dispatch clause and they earn more dispatch from their sub-charterer than they pay to the head-owner. Dispatch is recognized at voyage completion when the laytime calculation is finalized — the amount is determined only at the end of port operations.
Practitioner & Systems Framework
💻 ERP Architecture
Dispatch accounting is processed alongside the voyage P&L calculation after the voyage completes. From the shipowner's side: dispatch is a voyage cost (deducted from voyage revenue to compute TCE). For shipping companies operating in pools or with back-to-back charter structures: dispatch can create complex P&L flows (paying dispatch to head-charterer while receiving dispatch from sub-charterer). Many charter parties are 'all despatch' (dispatch payable at both load and discharge ports) vs. 'reversible laytime' (laytime saved at one port can offset overtime at another).
⚠️ Audit Flags
Dispatch is less frequently disputed than demurrage (it's a benefit to the charterer, who has strong incentive to agree on the laytime calculation). Auditors test: completeness — are dispatch obligations accrued when the voyage is completed? The dispatch liability should be recognized when the time is saved (not when the charterer submits a claim). For companies with many ongoing voyages, dispatch accruals at period-end must be calculated for all open voyages where the loading has been completed.
📄 Required Documentation
Voyage charter party (dispatch rate, whether dispatch applies at load, discharge, or both), Statement of Facts (confirming time used), laytime calculation (showing time saved), dispatch calculation, payment to charterer, and reversible laytime analysis (if applicable).
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