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

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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

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

1. To proceed, click the button. then enter a value in the Up to (Days) field to define the upper limit of the rate.

Figure 2.1: Add Tier modal

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

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

Edit fields by clicking on them. Navigation within the grid is possible using the arrow keys, and fields can be edited by typing directly

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.

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

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.

1. 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.

1. 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

Tiered rates operate independently. Therefore, adding tiered demurrage rates does not affect or apply to tiered despatch rates.