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SHIPPERS ENCOURAGED TO PROVIDE FEEDBACK TO FACT FINDING INVESTIGATION ON CONTAINER DETENTION AND DEMURRAGE

Rebecca Dye, Commissioner of the US Federal Maritime Commission spoke at the recent Global Shippers Forum AGM on supply chain visibility and performance, including her current investigation into container detention and demurrage.
Detention and demurrage charges, and the proliferation of surcharges generally, are a growing problem for shippers worldwide. Commissioner Dye noted that the causes are various and may be linked to such factors as congestion resulting from bigger ships, shortage of landside haulage at peak periods, and impacts of industry consolidation / alliances. Of significant concern is the levying of charges on parties when the cause of the infractions is beyond the control of the cargo owners or their representatives.

In the first instance the Commissioner’s investigation, called Fact Finding 28, is focusing on understanding the breadth and depth of the problem, with a call for shippers (including NZ shippers) to document their demurrage and detention experiences and participate in this important investigation. The dedicated investigation email address to send information and/or documentation to support specific allegations of unreasonable port detention and demurrage practices and fees is email: FF28@FMC.Gov

Demurrage pertains to the time an import container sits in a container terminal, with carriers generally responsible for collecting penalties on behalf of container terminals. Detention relates to shippers keeping hold of containers for too long outside of a container terminal.

 
 
 
 
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