VIP - Time Charter Out

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This is a Key Topic, with high value for all users.

Walkthrough: Scheduling a Voyage

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Create a TC Out > Create an Estimate or Voyage > Hand Off to Operations

The Time Charter (TC) Out is a contract for a vessel from the perspective of the Owner; you are allowing a Charterer the use of your vessel. Hire is paid in advance, and the Billing Period is usually 15 days. The first bill includes the Time Charter hire for the applicable period, plus Gratuities and bunkers. Typically, you sell the entire amount of bunkers upon Delivery of the vessel. When the vessel is Redelivered, you buy back the entire amount, at the price stated on the contract.

The Time Charter Out form provides for the scheduling, billing, and receipt of payments for vessels chartered out to other parties.

TC Out List

The TC Out List contains all TC Out contracts that you have the right to view.

On the main menu , under Chartering, next to TC Out, click List.
On the Trading menu , under Trades, next to Time Charter Out, click List.
On the Chartering menu , under Time Charter Manager, next to Time Charter Out, click List.
On the Operations menu , under Time Charter Out, next to Time Charter Out, click List.
In the Chartering quick links, click .

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These contracts also appear as positions in the Matching Cargo Book list.

Note: Selecting the Send Notifications button generates outbound messages of type Time Charter Export. You will need to add the target message type tcExport to the notificationsIncludeList configuration flag in order to use this functionality. All the messages generated can be viewed on the Interface Message List.

Time Charter Out

To view an existing TC Out, on the TC Out List, click its row or TC Code link.

To create a new TC Out:

Do one of the following:
- On the TC Out List, click .
- To copy a Time Charter Out, on its toolbar, click:
  and then click Copy to TCO. You can also create a TC In by clicking Copy to TCI.
- On the main menu , under Chartering, click TC Out.
- On the Trading menu , under Trades, click Time Charter Out.
- On the Chartering menu , under Time Charter Manager, click Time Charter Out.
- On the Operations menu , under Time Charter Out, click Time Charter Out.
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- To share a TC Out, copy its URL and then share it with any signed-in users in your organization.
- TC Out details are in the center:
  - TC Out information appears in contract information, Summary Tree, Delivery and Redelivery, Pricing, Bunkers, Exposure, Performance, Warranty, Notice, Off Hire, Bareboat, Properties, Inv Items, Linked Trades, and Remarks and Notes to Operations sections.
  - You can access additional tools, forms, and information on the toolbar and right panel.
Enter the required information. This is the same as for the Time Charter In, except for the Charterer field, rather than Owner.
Note: The Charterer field cannot be amended if there is a voyage associated with the contract. To modify the Charterer field, users must delete the linked voyage in the system.
Enter any additional information, following the Time Charter In instructions.
To save your changes, click:
A Time Charter code is generated.

Scheduling a Voyage

To schedule a voyage, on the toolbar, click Sched a Voy and complete the Create New Voyage form. Typically, a single Voyage is scheduled for a single Time Charter Out, so in this Voyage when scheduling it from the Time Charter Out.

When the Voyage is Scheduled

A Y port (Delivery) and a Z port (Redelivery) are automatically created.
The Actual/Projected Delivery date and time appear in light blue font, according to the Y port, to indicate those values are projected.
If the Delivery Port in the Voyage Manager (Y port) is different than the Delivery Port set in the Time Charter Out, the port is updated in the Time Charter Out.
On the Bunkers Delivery/Redelivery tab, the Actual/Projected Delivery quantities and prices are automatically set for each Fuel Type.
A TCO Bunkers Adj on Delivery item appears in the Voyage P&L, in case there is an adjustment.

If a Z port (Redelivery) is also specified in the voyage:

The Actual/Projected Redelivery date and time automatically appear in light blue font according to the Z port, to indicate those values are projected.
If the Redelivery Port in the Voyage Manager (Z port) is different than the Redelivery Port set in the Time Charter Out, the port gets updated in the Time Charter Out.
On the Bunkers Delivery/Redelivery tab, the Actual/Projected Redelivery quantities and prices are automatically set for each Fuel Type.

When the Vessel is Delivered

When the Y port (Delivery) is arrived, the Delivery information defaults to the Time Charter Out, this time as Actual and not Projected: The Delivery Port, Delivery Date/Time, and the Bunker quantities are updated according to the Operational information from the Voyage. The Time Charter Out Status is automatically set to Delivered.

VIP uses the voyage’s bunkers to estimate redelivery values, instead of using the TCO contract’s estimate from the Bunker Breakdown but only when the bunker prices are different between TCI and TCO. The system will use the voyage bunkers because these are actual values entered into the system. If there is a difference with the prices, the adjustment goes based off the voyage bunker as correct price for delivery.

When the Vessel is Redelivered

When the Z port (Redelivery) is sailed, the Redelivery information defaults to the Time Charter Out, this time as Actual and not Projected: The Redelivery Port, Redelivery Date/Time, and the Bunker quantities are updated according to the Operational information from the Voyage. The Time Charter Out Status is automatically set to Redelivered.

Use tools on the toolbar to create, retrieve, save, copy, or delete records.
Other Info: Add Other Information or comments about a number of aspects of the Time Charter.
Options: Add Lifting or Purchase options, if there is an option to extend the contract or to purchase the vessel, and you have to notify the other party by a certain date.
Hire Statement: Open the TC Out Hire Statement. The Hire Statement for a Time Charter Out lists all the amounts invoiced or received; you can issue a bill from it. You can also view reports.
Issue Bill: Open the Time Charter Bill form to create Time Charter Bills.
Commission: View and create TC Commission or Claim Commission Payments or (when configuration flag CFGEnableBrokerRules is enabled) Add Default Brokers.
Sched a Voy: Schedule a voyage.
Open Mirrored Contract (when configuration flag CFGEnableContractMirroring is enabled): Open the mirrored TC In.
Estimate: Create a Time Charter Out Estimate.

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For Time Charter Out contracts, you can also enter User Group/User (Department/Team) information.

Related Configuration Flags

Name/Flag	Description
Use Company Lob Trade Area Hierarchy CFGUseCompanyLobTradeAreaHierarchy	Sets up a hierarchy between Company, LOB, and Trade Area on several forms.
Clear Company Lob on Copy CFGClearCompanyLobOnCopy	Clears the Company, LOB, and Department values when copying a Voyage Fixture or contract.
Default TC Status CFGDefaultTCStatus	Sets the default status of Time Charter contracts.
Bill by Natural Month CFGBillByNaturalMonth	Always ends the monthly Billing Period at the 1st of the next month, so every next invoice period is a complete month; otherwise, the Billing Period is always a complete month from the delivery date.
Use Absolute Min Max on TC CFGUseAbsoluteMinMaxOnTC	Uses the Less Days and More Days values for Min and Max Duration.
Enable TC Operations Coordinator CFGEnableTCOpsCoordinator	Adds an Ops Coordinator field.
Enable TC Chtr Specialist CFGEnableTCChtrSpecialist	Adds a Chtr Specialist field. The value will be copied to the TCO Contract when fixing a TCO Estimate.
TC Joint Venture CFGTcJointVenture	Adds a Profit Sharing button to the toolbar to enable entering Owner Profit Share details manually in both TCI and TCO. These profit-sharing items will be included in the Time Charter Invoices.
Enable TC Write Off CFGEnableTCWriteOff	Adds a Write Off field to the Hire Table in Time Charter In and Time Charter Out contracts. The Write Off amount is automatically added to the Hire on the invoice and is subject to the different commissions and Off Hire.
Default TC Comm Payment Method CFGDefaultTCCommPaymentMethod	Sets a default Payment Method for brokers.
Check Redel Bunker Vs Hire CFGCheckRedelBnkVsHire	Enables Alerts for partial bunker deductions, to make sure charterers can collect the value of redelivered bunkers. On the Item Select form, the Bunkers On Redelivery items are only highlighted in yellow when the value of the contractual redelivery bunkers meets/exceeds the net hire left in the contract. The calculation of this date is based on the Period To value in the Time Charter invoice. A validation warning is added to the voyage, which appears for Last TCI/TCO Voyages with end quantities that are different than the Estimated Redelivery quantities in the linked Time Charter contract. Bunkers Cost on Redelivery line items (Quantity and Amount) are editable. An Unpriced Bunkers informational check box appears on the Bunkers tab.
Exclude TC Consumption from Bunker Calcs CFGExcludeTcConsFromBunkerCalcs	When enabled, the operations bunker calculations use the consumption rates from the Vessel form instead of those specified in a Time Charter. This can be used for performance at the end of the charter.
Enable Vessel Bunker Grade CFGEnableVesselBunkerGrade	Specifies the Fuel Grade in a G (Grade) column on the Vessel or Time Charter In/Out form, which defaults the value on the Bunker Requirement; it can be overridden but is required for Confirmed status.
Enable TCO Bunker on Owner CFGEnableTcoBunkerOnOwner	Adds an Owner's Account check box on the TC Out Bunkers Tab. When cleared, only ballast bunkers appear. Selecting this check box specifies that all bunkers consumed during this TC Out are on the owner's account. There will be no bunker sales to the charterer at delivery and no bunker purchases from the charterer at redelivery. Any bunkers lifted during the TC Out voyage will be on the owner's account, and bunker invoices must be paid by the owner, just like in an Own Voyage (OV). Also, when this check box is selected, the Rebillable check box can be selected, which causes the Bunker Consumption in the voyage P&L to be net zero by adding a Rebill line for the Bunkers Consumption. This amount can be billed in the Time Charter Out Bill.
Always Show TCO Bunker Adjustment CFGAlwaysShowTCOBunkerAdj	Causes TC Out Bunker Redelivery Adjustments to be calculated regardless of the status of the linked TC Out Fixture.
Enable Contract Mirroring CFGEnableContractMirroring	Enables the following types of intercompany contracts to be mirrored: Cargo COA, VC In COA, Cargo, VC In, Time Charter In, Time Charter Out, and FFA/Option/Bunker Swap Trade. When a contract of one of these types is created with internal counterparties, a mirrored contract is automatically created from the opposite perspective, so that users from both legal entities can manage the contract and include it in both their operational planning and their trading exposure and P&L. When both CFGEnableContractMirroring and CFGEnableTCInvoiceMirroring are Y, and when a TC contract is mirrored, TCO invoices are mirrored from TCI invoices. Incremental invoice type is unavailable for such mirrored TC invoices. If an **OV voyage has cargoes with multiple internal charterers, it can be mirrored with multiple RELT voyages, one for each internal charterer's company.
Flex Hire Periods CFGFlexHirePeriods	When enabled, it is possible to set overlapping hire Periods with specific accounting Codes on TC contracts. The following changes appear on the TC Pricing tab: In the Hire Rate table, a Code column appears. Possible values are blank (default), CAPEX, OPEX, and MISC. Note: The following Business Rules must be set for TC In Payment (TCIP), TC Out Bill (TCOB), and Voyage Daily Cost (VCST): TCIP:OPEX TCIP:CAPEX TCIP:MISC TCOB:OPEX TCOB:CAPEX TCOB:MISC VCST:OPEX VCST:CAPEX VCST:MISC For hire lines with a Code specified, the Code is set as the Subcode and it is used for all relevant Business Rules. To designate a hire line item as noncommissionable, enter a noncommissionable Operations Ledger Code. In the Lock column, a new option appears: Overlap. When selected, the From/To values of the line are editable, and it is possible to set this line as overlapping the others. Setting an overlapping line requires a different Code to be set. When an overlapping hire line is added, the overlapping Period is accounted for all across the system.
Show Remittance in Cargo CFGShowRemittanceInCargo	Adds Remittance Bank, Invoice %, Payment Terms, and Balance % fields to the CP Terms Details, Cargo COA, Cargo, VC In COA, and VC In forms. Also adds a Remittance Bank field to Time Charter Other Information. Remittance information flows between these places; for example, fixing an Estimate will transfer the remittance information. On a Cargo COA, VC In, or Time Charter Out, changing the Company clears the remittance bank information, as this may change with a change to the Company. On a VC In COA or Time Charter In, changing the Owner clears the remittance bank information, as this may change with a change to the Owner. A default value for the Remittance Bank for each currency can be selected in the Address Bank Links tab for Cargo COA, Cargo, and Time Charter Out (Other Information) contracts, but it can be changed later.
Enable Voyage Roles CFGEnableVoyageRoles	On the Voyage Properties panel, adds a Users section to set and view the five Key Users of the voyage: Chtr Coord (defaults from Cargo form), Ops Coord, Ops Coord 2, Controller, and FD Manager (Freight and Demurrage Manager). On a Time Charter, adds a Roles tab to set the Controller and Finance Coordinator.
Default Claim Commission Invoice Setting CFGDefaultClaimCommissionInvoiceSetting	This flag controls the default setting for broker commissions on Claims by setting the default value of M on TC In, TC Out, Cargo, Cargo COA, VC In, and VC In COA broker grids. Possible values: 0 (default): Claims are not commissionable. 1: Claim commissions will be invoiced separately. 2: Commissions will be deducted from the Claim Invoice.
Enforce Operations Ledger Code Commissionable Property CFGEnforceOpsLedgerCodeCommissionableProperty	When enabled, the Commissionable setting of an Operations Ledger Code alone determines whether claim and freight adjustment line items are commissionable. When enabled, the commissionable setting cannot be overridden in invoices or per broker.
Enable Commission Sharing CFGEnableCommissionSharing	When enabled, you can share commissions between internal broker companies. For more information, see Sharing Commissions with Internal Brokers. Also adds an Internal Counterparty column to the TCO Estimate Broker table.
Enable Broker Rules CFGEnableBrokerRules	When enabled, Cargo Broker Rules and Time Charter Broker Rules can be defined to add default brokers to contracts. Also adds Add Default Brokers to the TCO Estimate toolbar to default internal brokers by applicable rules.
Enable Operations LOB CFGEnableOpsLOB	If enabled, displays an LOB (Line of Business) field on the Address (Type W), Estimate, Voyage Fixture, Voyage, and contract forms.
Enable TC Lease Accounting CFGEnableTCLeaseAccounting	When enabled, the TC Lease Accounting functionality is available.
TC Default Lease Transition Date CFGTCDefaultLeaseTransitionDate	Note: CFGEnableTCLeaseAccounting must be set to Y. The default lease transition date to use for Time Charter contracts.
Fix Index Linked Hire Pricing Period CFGFixIndexLinkedHirePricingPeriod	When enabled, index-linked hire rate is calculated for pricing periods predetermined by hire start time and period length. Pricing periods should not be affected by individual invoicing periods. This configuration should only be enabled when CFGEnableGeneralUnpricedComponent is Y.
Set Default TC Duration Basis CFGSetDefaultTCDurationBasis	Sets the default Duration Basis on Time Charter contracts (In and Out) from the following options: Min, Min Excl Option, Mid, and Max.
Use Operations Dates for TCO Duration CFGUseOpsDatesForTcoDuration	When enabled, if delivery and/or redelivery ports are defined in a TCO voyage, and the TCO Fixture Duration Basis is set to Custom, the TCO revenue for the voyage will be calculated basis the delivery/redelivery dates specified in the voyage itinerary.