Demurrage/Despatch for Service and Freight Contracts
Demurrage/despatch refers to a two-part concept. 'Demurrage' is a charge imposed for delays during loading/unloading beyond agreed-upon times, increasing costs. Conversely, 'despatch' is a reward granted when loading/unloading operations are completed faster than stipulated in the contract, reducing costs. These concepts aim to promote efficiency in logistics.
Demurrage or despatch conditions can be established with the provider of service or freight to calculate the penalty or bonus applicable for the time spent loading or unloading a vessel with respect to the contractually allowed time. The discount or charge for demurrage or despatch can be apportioned to the despatch orders associated with the despatch, where the despatch has the associated service or freight specified.
Configuration
Demurrage/despatch conditions can be entered in several screens in MineMarket:
- In a set of contract terms in a Sales Contract or Purchase Contract—Included in a sales or purchase invoice, or for a demurrage invoice
- In a Despatch Order—To override a condition from the sales or purchase contract
- In a Freight Contract or Service Contract—Included in a freight or service invoice, or for a freight demurrage or service demurrage invoice
- On a Shipment—For a freight invoice or freight demurrage invoice of a shipment without a despatch order
In all cases, only demurrage/despatch conditions at the applicable locations apply in the invoice. For freight and service invoices, demurrage can be included for every port on the route. Demurrage/despatch conditions in freight and service contracts are also limited by rate detail.
For more information, see:
