This is a Key Topic, with high value for all users.
Configuration flag CFGAllowEstLaytime enables demurrage estimating to make the P&L projection more accurate. When the actual demurrage is entered, it overrides this amount.
- In the Voyage Manager, click
and then click Estimated Demurrage.
- Enter the Estimated On date.
- Do one of the following:
- Enter the Rate Per Day, Days Allowed, and Days Used. An Estimate of the Demurrage amount calculates.
For a Tanker, if Days Used is less than Days Allowed, the amount is 0 unless Allow Despatch is selected on the Vessel form. - If days and rates are not known, enter an Estimate. The Estimate is used on the voyage P&L until your first Demurrage calculation.
- Enter the Rate Per Day, Days Allowed, and Days Used. An Estimate of the Demurrage amount calculates.
- Do any of the following:
- To have the voyage P&L reflect the percentage of Demurrage and Demurrage Commission you expect to be collected, enter an Accrual %.
- To include an estimated value for Demurrage in the voyage P&L, select the Estimate is Provisional checkbox. Then the value of this Estimate is used in the Actual column until it is superseded by calculated and settled amounts; when you enter any actual amounts, they are subtracted from it.
- For example, if the Estimate value is $100,000, and you enter an actual amount of $50,000, the voyage P&L shows $50,000 provisional and $50,000 actual. If you enter another $60,000 actual, the voyage P&L shows $110,000 actual and no provisional Demurrage.
- When the calculation status is Settled, the Agreed Amount is included in the voyage P&L. When the status is No Demurrage or Canceled, no demurrage or despatch is included in the voyage P&L.
- When all Demurrage calculations are done, and Claims are created, clear this checkbox, so that only calculated and settled amounts are represented in the P&L.
Note: If the check box is not cleared when monthly accruals are run, then the Estimated Demurrage will appear under the respective Mon YYYY Accrual period of the "Compare:" drop-down in the P&L. - If this check box is not selected, the estimated demurrage amount is included until the first Laytime Calculation amount is included.
- To account for the estimated time to be deducted from Days Used, include a value in Deduction From Days Used.
- To capture notes that provide additional context for estimated demurrage calculations, include them in Remarks.
To synchronize the demurrage and despatch rates from the Cargo contract with the estimated demurrage rate, select the Auto-update from itinerary checkbox.
The Estimated Demurrage Amount appears on the voyage P&L. When the Laytime calculation is set to settled status, this will remove the estimated demurrage amount from the P&L (overwrite the estimated amount). Estimated Demurrage accessibility is controlled by the Voyage manager selection. (Operations > Quick Links > Voyage Manager)
Optimized Estimated Demurrage
Staring on the Estimate, port congestion data can be entered manually or imported via webhook (Oceanbolt & Portlog). This provides an opportunity for an end-to-end solution for Estimated Demurrage that minimizes manual action and increases the accuracy of the Voyage PnL.
Setting Enhancements
- CFGAutoCreateEstVoyageDemurrage
- CFGEnableMultiEstDem
- Voyage Template Additions
With these enhancements, data entered or webhook mutations pertaining to port congestion will apply to Estimates, reflect the demurrage in the Estimate PnL, and transfers port data to the Voyage to create an accurate Voyage PnL.
The combination of CFGAutoCreateEstVoyageDemurrage & CFGEnableMultiEstDem enabled will allow Voyage Setting "Auto Create Per-Counterparty Per Port Estimated Demurrage". If this setting is enabled, creating a voyage the estimated demurrage calculation will automatically be created for the voyage with an estimated amount equal to the sum of the current demurrage estimates for all cargoes in the voyage.
Enabling "Default Apply Auto-Update From Itinerary" will default the "Auto-Update From Itinerary" checkbox on Estimated Demurrage. This will allow changes to the Voyage Itinerary to automatically apply to the Estimate Demurrage.