Demurrage/Despatch Calculations

• Demurrage/Despatch Calculations
• • Basic Calculation of Vessel on Demurrage (VOD) Date and Time
  • Invoice Line Item Calculation
  • • Invoice Line Item Estimation without Actual Values

Basic Calculation of Vessel on Demurrage (VOD) Date and Time

Example: A demurrage/despatch condition is entered into a contract for a specific port location. The port has a loading rate of 4000 t/hour. The turn time is 3 hours. For a shipment of 48,000 tonnes:

Allowable time = ( Mass / Loading Rate ) + Turn Time

Allowable time = ( 48,000 / 4000 ) + 3 = 12 + 3 = 15 hours

This allowable time is added to the time of the Lay Time Commenced event to establish the VOD date and time. If the shipment is not completed by the VOD date and time, demurrage costs are incurred.

If the Lay Time Commenced event is at midnight:

• The vessel is on demurrage if the Lay Time Completed event is after 15:00.
• The vessel is on despatch if the Lay Time Completed event is before 15:00.

Note: The allowable time can also include delays if delay definitions are included in the demurrage/despatch conditions.

Invoice Line Item Calculation

Demurrage invoice line items are calculated on the period of time between the VOD date and time and the Lay Time Completed event.

Example: For the basic calculation above, the shipment's Lay Time Completed event is at 17:00. This time is after the VOD date and time of 15:00; therefore, the vessel is in demurrage for 0.0833 days. The fixed value of the applicable demurrage/despatch condition is 15,000 USD/day.

Demurrage cost = Time in demurrage * Demurrage value = 0.0833 * 15,000 = USD 1250

Calculated and tiered values can also be entered into demurrage/despatch conditions.

The MineMarket Marketing Service calculates demurrage/despatch in despatch order snapshots. A printable summary of the data used to calculate lay times and demurrage/despatch values is available when viewing despatch order costs. See Despatch Order Snapshots.

Invoice Line Item Estimation without Actual Values

MineMarket can estimate demurrage/despatch in despatch order snapshots and non-final invoices when actual values are not available:

• Loading/unloading transactions—Estimated using transactions in a loading/unloading plan, or the despatch order required quantity if there is no loading plan
• Delays—Estimated using planned incidents in a loading/unloading plan
• Approved laycan start and end dates—Estimated using unapproved laycan start and end dates
• NOR Tendered date—Estimated using actual time of arrival (ATA), or estimated time of arrival (ETA) if the ATA is unavailable

For data from loading/unloading plans, if a plan is active, that plan is used. If there is no active plan, the first inactive plan is used.

The XML calculation log (viewable via the despatch order snapshot) includes whether each value used in the calculation is from an estimated value, and whether the final value is estimated.

Final invoices only use actual values in demurrage/despatch calculations.