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Demurrage ​

DirectPort offers a powerful demurrage management system that helps you configure and calculate demurrage charges for your voyages. However, it can be overwhelming to configure demurrage terms for the first time. This guide will walk you through the process of configuring demurrage terms and calculating demurrage charges.

Configuration ​

Pre-requisites:

  • An upcoming voyage in need of demurrage terms

1. Getting started ​

Demurrage terms are configurable for the customer and transport side under Charter Party Terms of a voyage. To begin configuration, make sure to be in edit mode of charter party terms - and then, press the pen icon next to the demurrage terms section.

2. Choosing the scope ​

You are now greeted with a choice for either SHARED or OPERATION scope - this will determine how time is counted. Choose SHARED if your voyage needs overarching terms / one time counting for all stops, choose operation if you need different terms / separate time counting for each stop.

3. Choosing a template ​

Out of the box, DirectPort offers a set of default demurrage templates (laws) commonly used in the industry for liquid and dry bulk cargo. Selecting the desired template will automatically fill the relevant configuration fields for you.

Note: Contact your DirectPort representative if you need a custom template. Currently, independent templates are not supported.

4. Making adjustments ​

Happy with the way terms are looking? Great! You can skip this step. Otherwise, keep reading.

Sometimes, you might want to adjust the terms to your liking. This can be done by adjusting the relevant fields on the left side of the modal. Your changes will be reflected on the right side summary panel for reference.

5. Saving your terms ​

Once terms are configured, you can save them by pressing the 'Save Changes' button. You should now see a summary of your terms appear under the demurrage section.

Calculation ​

Depending on configuration of terms, and quality of tracking data, DirectPort will attempt to automatically populate time counting fields for you. However, user confirmation is always required for saving a calculation in case of discrepancies.

1. Finding the calculator(s) ​

As with other voyage pricing components - configurations are present under charter party terms and outcomes under tab "Financial". Once there, you'll be able to see cost sheets per party, and calculation configurations for demurrage, and other components. The demurrage section consists of a single summary, and calculators - one per each stop (route operation).

2. Calculating demurrage ​

The core of calculation is done using 3 date-time fields: announcement at, laytime start at, and laytime end at.

If possible, these fields are populated as follows:

  • Announcement at: Based on either fixed date if provided during configuration or ATA timestamp of the stop.
  • Laytime start at: Based on the ATA timestamp of the stop.
  • Laytime end at: Based on either documents on board at (for liquid cargo) or operation transfer end at (for dry cargo). (You can view and populate these timestamps under the voyage timeline)

Otherwise, you can manually enter / override the date and time of the announcement, laytime start, and laytime end. Once all fields are filled, a demurrage estimation is shown.

3. Saving the calculation ​

After verifying the calculation, you can save it by pressing the 'Save Calculation' button. This will save the calculation to the voyage and make it available for the financial module. It is recommended to also specify the cause of the demurrage - easier for auditing and reporting.