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Managing Contracts

A contract, in Wheelhouse, binds two parties: the buyer and seller, for a given period of time. Where the seller provides the buyer some quantity of a given commodity.

Contracts in Wheelhouse approximate/represent business contracts and although schedules and shipments are tied to contracts, these contracts are NOT shipment contracts.

In Wheelhouse, shipping schedules are organized under a contract. Shipments can then be made, to execute these schedules.

Contract Details

Pricing

The Pricing section is a core component of a contract in Wheelhouse. It allows you to define the complete commercial terms for the buying and selling of a commodity, including the base price, any adjustments, and ancillary charges like detention.

Pricing Type

This is the most important setting in the section, as it dictates the fundamental logic for how the commodity price is determined.

  • Fixed

    • Description: A single, unchanging price per unit that remains constant for the duration of the contract. This model provides price certainty and is insulated from market volatility.
    • How to Use: When you select Fixed, you will primarily use the Unit Price field to enter the agreed-upon rate.

  • Index

    • Description: A variable price that is tied to a published, third-party market benchmark or "index" (e.g., WTI, NYMEX futures). The final price fluctuates daily with the specified market index. The contract price is calculated as Index Price +/- a Differential.
    • How to Use: Select Index and specify the benchmark you want to use. You must then enter a value in the Diff field to set the adjustment from that index price.

  • Posting

    • Description: A variable price based on a rate published ("posted") by a specific entity, such as a refiner, terminal, or pipeline (e.g., a "rack price"). The price is specific to that supplier at a given location and can change frequently.
    • How to Use: Similar to the Index type, the final price is calculated as Posted Price +/- a Differential. You will need to specify which company's posting to follow and enter an adjustment in the Diff field.

Field Definitions

Field Description Used When
Pricing type The core pricing model for the contract. Always
Diff The Differential is the adjustment amount (positive or negative) that is added to the benchmark price to calculate the final price. Index and Posting types
Unit* The unit of measure for the Differential (e.g., USG for U.S. Gallons, BBL for Barrel). Index and Posting types
Currency* The currency for the Differential (e.g., USD, CAD). Index and Posting types
Unit Price The flat-rate price per unit for the commodity. Fixed type
Currency* The currency for the Unit Price. Fixed type
Discount An additional reduction that can be applied to the final calculated price, regardless of the pricing type. Optional (All types)

Configuring Detention Charges

Detention fees are penalties charged for operational delays, such as when a transportation asset (truck, railcar) is held at a location longer than the agreed-upon free time. These charges are separate from the commodity price.

  • + Add Detention: Click this button to create a new detention rule. You can add multiple rules to create tiered charges (e.g., one rate for the first 2 days, a higher rate thereafter).
  • Detention rate: The financial penalty to be charged (e.g., $75). This is typically a flat fee per day.
  • After Days: The amount of "free time" (in days) allowed before detention charges begin. A value of 0 means charges can begin immediately.
  • Remove: Deletes the associated detention rule.

Contract Notifications

Notifications in the contract apply to all shipments in a contract. To take advantage of this setting, think of these contact preferences as the default for any resulting shipment(s). Contact preferences can also be managed per shipment.

Contract Actions

Actions to perform on contracts, and their significance/value:

  • clone
  • roll-over
  • delete