Enter Demurrage/Despatch Conditions for a Service or Freight Contract

Security Note: You need the Allow contract maintenance security right in the Contracts domain security rights group for this activity.

Activity Steps

Open the Service Contract or Freight Contract.
Select the Demurrage/Despatch tab.
Right-click in the Demurrage field group and select New from the menu.
Update the Name of the demurrage/despatch condition if required.
Select the Location at which the demurrage/despatch applies. Select from the port locations defined on the Supply Chain panel of the Solution Explorer.
Select the event for Lay Time Commenced from:
- Laycan Start
- Laycan End
- NOR Tendered—When the Notice of Readiness (NOR) is tendered. For non-final invoices, can use the ATA or ETA.
- NOR Accepted—When the NOR is accepted. For non-final invoices, can use the NOR tendered date.
- Berthed—The actual berthing date.
- Date of Arrival—The ATA, or for non-final invoices, can use the ETA.
- Loading Commenced—The actual start of loading, or for non-final invoices, can use the estimated loading commenced date.
- Unloading Commenced—The actual start of unloading, or for non-final invoices, can use the estimated unloading commenced date.
- Estimated Loading Commenced—The planned start of loading, or for non-final invoices, can use the ATA.
- Estimated Unloading Commenced—The planned start of unloading, or for non-final invoices, can use the ATA.
- Calculated—Uses an expression to calculate the lay time commencement.
- None
Select the event for Lay Time Completed from:
- Laycan End
- Loading Completed—The actual end of loading, or for non-final invoices, can use the estimated loading end date.
- Unloading Completed—The actual end of unloading, or for non-final invoices, can use the estimated unloading end date.
- Final Draft Survey
- Departure Date—The ATD, or for non-final invoices, can use the ETD.
- Unberth—The actual unberthing date.
- Estimated Loading End—The planned end of loading, or for non-final invoices, can use the ATD or ETD.
- Estimated Unloading End—The planned end of unloading, or for non-final invoices, can use the ATD or ETD.
- Calculated—Uses an expression to calculate the lay time completion.
If the Lay Time Commenced or Lay Time Completed is Calculated, select a tested expression or create an expression using the Expression Editor for the Calculated Lay Time Commenced or Calculated Lay Time Completed as required. The result of the expression must be a date/time.
Complete the following fields.
- Loading Rate—Average rate at which material is loaded at the port location, in the nominated unit of measure. This value is not used if specific rates are entered on the Loading Rates tab.
- Loading Rate UOM—Unit of measure associated with the Loading Rate. Select from the LoadingRates units defined in the Unit Conversion Editor.
- Turn Time/Free Time—Amount of time that is added to the Lay Time Commenced event to establish the VOD date and time. The turn time is typically the time between when the notice of readiness (NOR) is tendered, and the start of loading or unloading.
```
Allowable time = ( Mass / Loading Rate ) + Turn Time
```
- Turn Time/Free Time UOM—Unit of measure associated with the Turn Time/Free Time.
- Despatch %—If the loading/unloading is completed faster than the allowed time, refund/pay a bonus at the specified despatch percentage of what the demurrage cost would have been if the loading/unloading had occurred within the normal time. Default: 50%.
- Special Condition—Special condition under which the lay time is determined. Example: A demurrage/despatch condition has a Lay Time Commenced of NOR Tendered, a Turn Time of 3 hours and a special condition of USC. If the NOR tendered time is 06:00 and loading starts at 08:00, only 2 hours of the turn time is included in the allowable time before the vessel is on demurrage. Select from:
  - None—Use the event specified as the Lay Time Commenced.
  - USC—(Unless Sooner Commenced)—If the event specified as the Lay Time Commenced occurs outside of the approved laycan, use the conditions specified on the Lay Time Conditions tab.
- Exchange Rate Source—Exchange rate source used to determine the exchange rate from the demurrage/despatch currency to the primary currency used by the contract. Select from the exchange rate sources defined in the Currency/Exchange Editor.
- Delay Overlap Method—Method used to calculate the delay overlap for the despatch/demurrage. Select from:
  - Maximum
  - Minimum
  - Weighted Average
Select the Value Type tab.
Enter the following details in the Value Type field group.
- Currency—Currency in which the demurrage/despatch is calculated. Select from the currencies defined in the Currency/Exchange Editor. Default: The primary currency on the contract.
- Period UOM—Unit of measure associated with the demurrage/despatch time. Select from the Time units defined in the Unit Conversion Editor.
- Quantity UOM—Unit of measure associated with the quantity of material involved in the demurrage/despatch. For example, the Currency, Period UOM and Quantity UOM fields can be combined for a demurrage/despatch cost of USD 2 per tonne per day. Select from the Mass units defined in the Unit Conversion Editor.
- Value Decimals—Number of decimal places to which the periods of time are rounded to for the demurrage/despatch calculation.
- Quantity Decimals—Number of decimal places to which the material quantities are rounded for the demurrage/despatch calculation.
Configure the value type of the demurrage/despatch:
1. Select the Value Type from:
  - Fixed Value—The demurrage/despatch is defined by the Fixed Value.
  - Calculation Expression—The demurrage/despatch is calculated with a formula created in the Expressions for Custom Calculations.
  - Tiered—The demurrage/despatch is determined by tier levels defined on the Tier Group tab.
2. If the Value Type is Fixed Value, enter the Fixed Value.
3. If the Value Type is Calculation Expression, select a tested expression or create an expression for the Calculation Expression.
4. If the Value Type is Tiered, enter tiers. See Enter Tiers for a Demurrage/Despatch Condition.
To define a delay definition for the current demurrage/despatch condition:
1. Select the Delay Definitions tab.
  Note: During the loading or unloading, some delays can occur in the process. Some of those delays should be ignored in calculations. This is why delays are configured for the delay/despatch calculation. These delays are then compared with the delays that are configured for each shipment. Only the relevant delays, according to the delays configured for the demurrage/despatch calculation in the contract, are used. Therefore, it is important for delays to be entered for each shipment, so that specific delays can be ignored or considered as part of the demurrage/despatch calculation.
2. Right-click and select Add Delay Definition from the menu.
3. Expand the Incident Categories tree and select the Delay Definition to add.
  Note: Select multiple checkboxes to add more than one delay definition at once.
4. Update the following details to specify the proportion of the delay that contributes towards the demurrage/despatch.
  - Demurrage Applicable Percentage—Percentage to which the delay has affected demurrage. Example: If Demurrage Applicable Percentage = 100%, then none of the delay time will be used in the demurrage/despatch calculation. The actual delay time is added onto the original allowed time to produce a new allowed time.
  - Despatch Applicable Percentage—Percentage to which the delay has affected despatch. Example: If Despatch Applicable Percentage = 100%, then none of the delay time will be used in the demurrage/despatch calculation. The actual delay time is added onto the original allowed time to produce a new allowed time.
To define loading rates for the current demurrage/despatch condition:
1. Select the Loading Rates tab.
  Note: Loading vessels is done at a variable rate to prevent the vessel from cracking or becoming unbalanced. For example, the first and last portions of the tonnage are typically loaded more slowly than the middle portion of the tonnage. Some ports publish these values per vessel type or size. If specific loading rates are entered on this tab, the average Loading/Unloading Rate is ignored.
2. Right-click and select Add Loading Rate from the menu.
3. Update the following details.
  - Vessel Class—Class of the vessel to be loaded.
  - UOM—Unit of measure for the loading rate.
  - Loading Rate—Rate of loading onto the vessel.
  - From Weight—Weight from which the loading rate is applicable, in the unit of measure that matches the numerator of the loading rate UOM. For example, if the loading rate UOM is tonnes/day, the From Weight is measured in tonnes.
  - To Weight—Weight up to which the loading rate is applicable, in the unit of measure that matches the numerator of the loading rate UOM. For example, if the loading rate UOM is tonnes/day, the To Weight is measured in tonnes.
  - Reference Weight—Reference weight for the loading rate. Select from:
    - Cargo size—Sum of the weight of all despatch orders associated with the shipment.
    - Despatch Order Weight—Weight of the despatch order being evaluated in the invoice.
If Special Conditions is USC:
1. Select the Lay Time Conditions tab.
2. Complete the following fields as required.
  - Condition Reference—Should be set to the same event as the Lay Time Commenced.
  - Condition Before Laycan—The lay time commencement event to use (instead of the Lay Time Commenced date) if the Condition Reference is earlier than the approved laycan start date.
  - Condition After Laycan—The lay time commencement event to use (instead of the Lay Time Commenced date) if the Condition Reference is after the approved laycan end date.
  Select from:
  - Laycan Start
  - Laycan End
  - NOR Tendered
  - NOR Accepted
  - Berthed
  - Date of Arrival
  - Loading Commenced
  - Unloading Commenced
  - Estimated Loading Commenced
  - Estimated Unloading Commenced
  - None—Use the date specified in Lay Time Commenced.
To override exchange rates from the applicable exchange rate source, see Enter Fixed Exchange Rates.
Click Save.