# Tiered Demurrage/Despatch Rate Demurrage rate tiers and despatch rate tiers allow you to define different charges based on cargo duration. Instead of applying flat rates, you can create multiple tiers where: * **Demurrage tiers** specify charges when cargo exceeds laytime * **Despatch tiers** specify credits when cargo clears before laytime expires This creates aligned financial incentives: **charterers are penalized for delays and rewarded for faster operations**. #### How tiered rates are applied Tiered rates follow the same aggregation rules as static rates. How the tiers are applied depends on whether the laytime calculation is reversible or non-reversible: * If the laytime calculation is **reversible**, the tiered rates are applied to the **total laytime used across all cargo ports** * If the laytime calculation is **non-reversible**, the tiered rates are applied **separately for each cargo port**

Examples of Tiered Demurrage and Despatch Calculations

### Tiered demurrage rates #### Scenario

Parameter	Value
Laytime allowed	3 days
Time used	7 days
Time lost	4 days

#### Demurrage rate tiers

From (Days)	Up to (Days)	Rate
0	2	$8,000 per day
2	4	$12,000 per day
4	∞	$16,000 per day

#### Calculation

Tier range	Days applied	Rate	Amount
0-2	2 days	$8,000	$16,000
2-4	2 days	$12,000	$24,000
4+	0 days	$16,000	$0

**Total demurrage**: $40,000
*** ### Tiered despatch rates #### Scenario

Parameter	Value
Laytime allowed	3 days
Time used	2 days
Time saved	1 day

#### Despatch rate tiers

From (Days)	Up to (Days)	Rate
0	2	$4,000 per day
2	∞	$6,000 per day

#### Calculation


Tier Tier	Days applied Days applied	Rate Rate	Amount Amount
0-2	1 day	$4,000	$4,000
2+	0 days	$6,000	$0

Tier

Days applied

Rate

Amount

0-2

1 day

$4,000

0 days

$6,000

**Total despatch credit:** $4,000

### Set Tiered Rates 1. On demurrage or despatch rate field, click the

icon to set the tiered rate.

Fig. 1: Demurrage Rate Tiers modal with empty tiers

2. To proceed, click the

button. then enter a value in the **Up to (Days)** field to define the upper limit of the rate.

Figure 2.2: Initial tiered demurrage rates after 'Add' button is clicked

3. Once a row is added, the grid becomes editable. You can directly modify the **Days** and **Rate** fields, or remove a tier by clicking

. {% hint style="info" %} Edit fields by clicking on them. Navigation within the grid is possible using the arrow keys, and fields can be edited by typing directly {% endhint %} {% hint style="info" %} The system automatically sets the row with the largest **Up to (Days)** value as the final tier and extends its **From (Days)** value to infinity. This is automatically updated whenever the largest **Up to (Days)** value changes. {% endhint %}

Figure 3.1: Modified the rate of the last row to 35,000

Repeat step 2 to add new row.

Figure 3.2: Grid state after adding an additional row, illustrating how the last row’s From Days value is automatically updated when a new maximum Up to (Days) value is defined

{% hint style="info" %} The Rate Tiers modal follows these rules: * The first tier always starts at **0**, and the last tier always ends at **infinity**. * **From Days** and **Up to Days** cannot have the same value. * The **Up to Days** value must be greater than the corresponding **From Days** value. * Updating **Up to Days** automatically updates the **From Days** value of the next tier. * Changing the **From Days** value of the last tier to a value smaller than the **From Days** values of previous tiers will delete the affected previous tier(s). * The **Rate** field is not bound by any rules and must be set individually for each tier. {% endhint %} 4. Click

to finalize the tiered rates.

Figure 4: Demurrage/Despatch Rate fields with set tiered rates

The rate fields will be shown as 'Tiered', with the icon highlighted accordingly.
5. Clicking

will open the Demurrage/Despatch Rate Tiers modal displaying the existing tiered rates. Here you can add, edit, or delete individual tiers. You may also **remove** **all** the tiered rates by clicking

button and confirming the action.

Figure 5: Existing demurrage tiered rates

{% hint style="info" %} Tiered rates operate independently. Therefore, adding tiered demurrage rates does not affect or apply to tiered despatch rates. {% endhint %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.dataloy.com/release-8.23/voyage-management-system/step-by-step-guides/operations/laytime-calculations/maintain-laytime-calculation/tiered-demurrage-despatch-rate.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.