Add option for fixed USD per day rate when having index linked TC rate.

3 votes

I propose we add the option of having a fixed rate determined by the user under the index linked options for TC rates. This is because IMOS does not offer many options on how the index will be calculated apart from the date range so we are forced to use per date rates for the hire calculation. but index linked TC usually need to be reconciled every 15 days because you are paying in advance basis unknow rate, But when using per day rates imos does not correctly reconcile the hires and forces you to use incremental hires every time in order to calculate correctly. By adding the fixed rate option within the index linked options IMOS should recognize the hire as index linked and correctly reconcile it without the need for incremental hires.

Under consideration contracts trading Suggested by: Lucas Kyriakis (25 Jan, '21) • Upvoted: 26 Oct, '23 • Comments: 1

Comments: 1

26 Oct, '23
Joan
This may be an option for scenarios where index linked hires are switched to a fixed rate for a period of time, before being changed back to an index rate. We have this frequently! The system does not handle the switch between index and fixed and back again resulting in either having to do incremental invoices (which is not a viable option during a long term charter of many months or even years). Or, as we, are doing at the moment, having to reverse and redo previous invoices in order to correct the index rate, and correctly switch to fixed rate, and then again after the period on fixed rate has ended. It is frustrating and time consuming and requires a lot of duplication of work. Not to mention the impact on the owners who do not like this procedure and continuously complain about the way in which the correction has been handled!