Create and Edit Duration and Rates

The Create/Edit Duration modal lets you specify details about a particular Duration and it's Rates.

Create a Duration

After clicking the -icon, you will get this view:

Here, you can add inn various values for both the TC's duration and the duration's rates. You can create TC rates at the bottom Rate table.

When connecting a duration to a Market Index, you will automatically get the last updated date of it's Market Index Values in GMT:

Edit a Duration

After opening an existing duration by clicking on one of the row items, you will get this view:

Duration Details

The top section of Duration Details lets you specify the length of the duration, by setting the minimum and maximum duration, as well as the variance. You can also decide the mix/max time unit, as well as the variance time unit.

Clicking the Option checkbox, will display an additional dropdown menu for Option Status next to it, letting you select the duration as Declared, Forfeited or Not Declared.

In the second section, the duration itself is calculated based on the rule selected in the Duration Length Rule dropdown menu, with the default rule being Sum of all TC Rates. You can select the duration's time unit as well. However, if you enable Time Automation, the unit is set to only 'Day'.

Enable Time Automation

In the third section, you can tick the Time Automation checkbox, which then enables the Default Rate Length, the rule of Duration Length Rule is defaulted to Maximum Duration + Variance, and the rates will be generated automatically within the Rate table at the bottom of the modal. Changing the default rate length will delete all existing TC rates, and re-generate new ones based on the new value and current rule. The current rule decides how duration is calculated, as mentioned above. You can also change min/max and/or variance fields, which the duration and TC rates will update accordingly (except for the duration's time unit, as mentioned).

E.g., take the below example; if time automation is enabled, the duration length rule will become Maximum Duration + Variance*, which is here 20 days + 2 days = 22 days under duration. Since default rate length is now enabled, we can now override the defaulted 22 days, to e.g. 10 days:

As you can see, we have now generated 3 TC rates, which first and second ones have durations of 10 days each, and the remaining of 2 days in the third. Hence, the input of duration rate length decides how many are generated until we reach the duration. The action of enabling this checkbox will also delete all existing TC Rates, and re-generate new ones based on the current rule. Ticking it off will keep the rates as is, but you can change them or delete them however you like again.

*You can override the rule even if it's defaulted at Maximum Duration + Variance.

The Valid To date is based on:

• For TC Out contracts: the delivery port call's ATA date

• For TC In contracts: the voyage start date of the first linked voyage

Index-Based Rate

In the Index-Based Rate section, you can specify a particular Index (Market Index) the TC rates should follow.

Enable Index-based Automation

After selecting an Index, when you tick the Index-based Automation checkbox, each of the rates in the duration will be automatically generated based on this index. Note that this will not generate any spots here to follow if you don't select an index first! With a default rate length = 15, we for instance get:

Note that another Index is chosen to illustrate this section, along with other TC values.

Based on the linked Market Index's Values (MIV):

In the first above example, which is in Calculation Rule = PREVIOUS, you can see that rates #1 and #2 are calculated by a weighted average, based on their timestamps of the day, while rate #3 is > than the last MIV date. Meaning, rate #3 is calculated based on a forward curve.

The whole Index-based Automation section is collapsible to make the Rates table more of a priority, and your chosen view is persisted.

You can also decide the Percent to count of the rates, you can also choose Floor and/or Roof for the rates to follow, as well as the Profit Sharing Percent.

Select a Calculation Rule

As you saw in all above examples, you can choose a Calculation Rule; EXCLUDE, PREVIOUS or NEXT.

EXCLUDE: is the default selected rule. Calculates x days in average of published indices, excluding the days that are not registered in the system.

Note: EXCLUDE follows the same logic as earlier implementations of TC rates.

PREVIOUS: calculates x days in average of published indices, using the latest available index for the previous index registered in the system.

NEXT: calculates x days in average of published indices, using the latest available index for the next index registered in the system.