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  • Demurage Costs

    Anyone have any experience using the Settlement module to caluclate demurrage costs for ocean shipping? I know it' s not part of system functionality like claims.

    Demurrage results in the shipper being charged for any delays. The costs is usually based on how long the delya experienced is. Im not sure you could set this up using agents as it would bneed to automically adjust an invoice based on the time elapsed?

  • #2
    Re: Demurage Costs

    Did you managed calculate demmurage charges based on the shipment delay ?
    ...i
    if so..please share....

    Thanks

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    • #3
      Re: Demurage Costs

      Hi, one suggestion is to store the 'delay value' as variable stop activity time then have a rate basis on time (I think this was added to OTM within last year as 'time based accessorials'...then you would need to rerate shipment and invoice. Success of this will depend on when invoicing happens and if this is too late.
      MavenWire
      www.MavenWire.com

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      • #4
        Re: Demurage Costs

        Hi,
        Thanks for your reply.

        I am not clear....Can you please elaborate on "time based accessorial"...can you give me an example ?

        Thanks.

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        • #5
          Re: Demurage Costs

          There are a few different ways you could do this but basically you'd have a way to get the amount of time for the detention first. You can do this by using status events to drive the departure time on a stop (that way you can calculate the amount of detention time) or if the amount of time is already known then you could use direct sql updates to get the amount of time onto the shipment as a reference number or something.

          Once you get the amount of time on the shipment (in the stop or reference number or whereever), you could create an agent that listens for shipment modified (put a saved condition on your agent to make sure it only moves on to the actions if the detention time is on your shipment). Then in the actions you could use a direct sql update to insert a detention cost onto the shipment cost table. You should make sure to make the cost fixed so that any recalculating of costs will retain the calculated detention amount. After that, in your agent you could use invoice adjusted costs and that will add the appropriate amounts to the invoice and so on and so forth...

          It could get more complicated if you have a more comlicated detention program and if you have different detention costs for different service providers but nothing that a few IF THEN ELSE statements in your agent can't fix.

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