Concerned with detention and demurrage charges enforced by steamship lines and maritime terminal operators in cases beyond shippers’ control, the National Industrial Transportation League and other transportation organizations are pushing for new federal guidelines.
The Federal Maritime Commission (FMC) held a hearing last week to listen to the complaints of the unfair port charges. Such complaints came from a collection of organizations now calling themselves the Coalition for Fair Port Practices, who claim that the aforementioned charges have been levied more frequently in recent years.
Unfair port charges have been levied more frequently for a variety of issues, including labor strife, increasing freight volumes, weather emergencies, and the far-reaching impact of the Hanjin bankruptcy. Theoretically, such charges are meant to discourage using terminals for long-term storage and improve on-site equipment utilization.
Demurrage, on the other hand, is what is assessed when cargo is left at a terminal beyond its granted free time, while detention charges hit transporters for late return of carriers’ containers.
The case was first introduced in December 2016 when the Coalition for Fair Port Practices first filed a petition asking for a rulemaking proceeding on the matter from the FMC. Last week’s hearings marked the first step in that process.