A REPORT on US port congestion expected this summer will contain views from Federal Maritime Commission (FMC) on whether increases in demurrage charges are warranted.
The FMC received an increase in nationwide demurrage complaints this year but there were even more in recent months arising from US west coast port congestion, said commission chairman Mario Cordero.
With marine terminals suffering near congestion gridlock, shippers complain increasingly they get hit with demurrage late fees even though terminal operators are unable to accept the return of empty boxes.
Thus, shippers are charged for not picking up containers that operators cannot release, as well as being charged late fees for not returning containers terminal operators cannot accept.
"Is it reasonable that a shipper incurs a hypothetical US$200 demurrage charge per day because of the marine terminals inability to receive or release a container," Mr Cordero asked. "I can understand why these shippers are angry."
Under the lens of the Shipping Act, FMC staff is reviewing the complaints to determine whether the demurrage charges are unreasonable costs for services.
If the demurrage costs are found to be unreasonable, the report, which includes the findings of the agency's four hearings on port congestion held last autumn in Baltimore, Los Angeles, New Orleans and Charleston, will outline ways the industry, the FMC and other federal governmental bodies can respond.
Even after the ILWU and Pacific Maritime Association reach a new contract agreement, the threat of US port congestion won't fade, Mr Cordero said. That's why he has made port congestion the agency's top focus in 2015.
PORTS
17 February 2015 - 21:00
FMC to see if demurrage fees for port congestion are unreasonable
A REPORT on US port congestion expected this summer will contain views from Federal Maritime Commission (FMC) on whether increases in demurrage charges are warranted.
PORTS
17 February 2015 - 21:00
FMC to see if demurrage fees for port congestion are unreasonable
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