Demystifying Demurrage

Posted by Bob Kessler

Demurrage is expensive, and is aoffice pileup resized 600 cost resulting from any delays that are mutually agreed upon within the charter party agreement.  Then there are the indirect costs of reviewing, validating, processing, and paying claims.  Often claims are not received until three months after the end of an oil movement.  The demurage analyst will then need to track down all historical information about that specific oil Movement to compare to the claim details.  This means dock logs, vessel event reports (like those found in PortVision Advantage), BOLs, and Inspector reports.  Next, the tedious task of comparing her factual data with the claim begins.  If all matches, the claim can be approved.  If not, the claim can be rejected or held for more information.  Claim analysis can be long and tedious.  The administrative costs of demurage is not trivial.

What if all the information necessary for demurrage claim analysis was all in one place?  What if this place also happened to be the primary tool that all movement stakeholders used to manage their responsibilities?  Information would be collected one time at the source and referenced in the future when there was a question about the job.  What if this system calculated your demurrage exposure immediately after completion of the job?  Then an analyst could run a demurrage exposure report and compare to a claim for a quick approval if the two numbers were in tolerance.  If not, the analyst would have all the relevant information in one place for to back up the adjustment or reject the claim. 

PortVision’s TerminalSmart platform helps you consolidate relevant information into a single system.  Once in the system, you have what you need to view, analyze, manage, and dispute.  And all of this translates into fewer dollars going out of your organization, and less time spent by your team on routine, repetitive tasks.

Nodding your head?  Then contact us for more information about how TerminalSmart can help optimize operations at YOUR marine terminal.

PortVision 360 AIS Vessel Tracking

Posted on Jun 24, 2013, 12:11:00 PM

Topics: Tools