# 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 %}