Documentary credit system. The documentary credit can also be called a "commercial credit" and the system is one that is controlled by banks, which provide finance for buying and selling goods. The phrase "standby letter of credit" can also be used.
D1/2D (DHD) Despatch half Demurrage. The rate of payment of despatch by the shipowner to the Charterer for releasing the ship earlier than the period of agreed laytime ("Despatch") is set in the charterparty to be half the rate of compensation at which the Charterer pays the shipowner if the agreed laytime is exceeded ("demurrage"). It is traditional for despatch payments to be at half the rate of demurrage payments.
Double bottom. The double bottom, extending from the forepeak to afterpeak tank, considerably increases the safety of the vessel in case of serious bottom damage by grounding, which might otherwise result in flooding of the cargo holds or engine room. Moreover, the double bottom, which is subdivided into a number of tanks, is suitable for carriage of water ballast, fuel oil, fresh water etc., and increases the longitudinal strength of the vessel.
The double bottom tanks are accessible from the ship’s holds or tunnel by means of manholes, which are closed by watertight covers with bolts.
Despatch. Just as "demurrage" was money paid by the charterer as compensation for breach of the-warranty of laytime, so also "despatch" represents money payable, in this case by the shipowner, if the ship completes loading or discharging before the laytime has expired. The owner may have to pay despatch to the charterer or other persons using the vessel, such as shippers or cargo receivers.
Duty to provide a seaworthy vessel. Article III, r. 1 of the Hague Rules and the Hague Visby Rules states that the carrier must, before and at the beginning of the voyage, exercise "due diligence" to make the vessel seaworthy and cargoworthy. ("Seaworthiness" includes manning, equipping and supplying the vessel.) This is quite different from the common law implied obligation of seaworthiness which is an absolute undertaking. The duty commences ` . . . from at least the beginning of the loading until the vessel starts on her voyage . . ." (Maxine Footwear v. Canadian Government Merchant Marine, 1959.)
Despatch-All time saved (ATS). If the charterparty does not specify which description of time attracts despatch, it is presumed that despatch will be payable for all time saved. In this situation, the time saved to the vessel will be from the completion of loading and/or discharging until the expiry of the allowed laytime and will include periods which would normally be exceptions to laytime. This differs from despatch payable for "all working time saved".
Deferred rebate. A carrier of goods by sea may offer his services to the general public for a price. The price may be set for users of the service but, in order to obtain long-standing custom from some users, the carrier may offer a “rebate” or discount, which is eventually a return of some of the price originally paid by the user.