THE dispute over demurrage and per diem overstaying charges has intensified with 100 transport lobbies putting pressure on the US Federal Maritime Commission (FMC) to prohibit late fees for containers and chassis that can't be picked up or delivered on time because of port congestion.
Congestion at US ports has caused a surge in disputes over demurrage and per diem detention charges with cargo interests being hit by fees totalling up to several million US dollars because of gridlock at west and east coast ports, reports Newark's Journal of Commerce.
"We believe these penalty payments should be prohibited when factors beyond the control of the shipper, receiver or motor carrier make it impossible for them to return chassis or empty containers, or pick up or drop off loaded containers within free-time limits," the lobbies said in a letter to the FMC.
The FMC as been in a quandary about how to respond. After a series of hearings last autumn, the commission voted 3-2 to approve a report that stopped short of recommending specific action but urged the industry to provide evidence that may warrant FMC action.
West coast port slowdowns in late 2014 and early this year generated 100 arbitration claims filed under the Uniform Intermodal Interchange Agreement (UIIA) over container lines' per diem fees for overtime use of their equipment.
In the first batch of rulings on the west coast claims, UIIA arbitrators ruled that unless a terminal was completely closed, truckers couldn't claim they were denied service unless they could supply hard evidence to support their claims.
Ocean carriers have pushed back against criticism with the president of the World Shipping Council, Christopher Koch, last month urging the FMC to resist appeals to take "some unspecified generalised action using some unspecified authority under the Shipping Act".
Mr Koch, a former FMC chairman, said port delays are costly for every segment of the supply chain, and that most congestion problems result from a combination of causes that cannot be addressed by a broad FMC policy ruling.
The shipping and trade groups that wrote to the FMC last week said it "is now time for the commission to take action" on the demurrage and detention issues discussed in the FMC's report on the issue.
The letter was signed by the National Retail Federation, Agriculture Transportation Coalition, National Industrial Transportation League, and industry associations such as the Motorcycle Industry Council and the National Onion Association.
The associations said the FMC "can and should pro-actively ensure on a going-forward basis that carrier and terminal rules and practices for assessing demurrage/detention against a shipper, receiver or drayman are reasonable, and it should prevent assessment of such charges when there is port congestion or other events that cause delays that are beyond the control of the shipper, receiver or motor carrier".
WORLD SHIPPING
17 June 2015 - 07:23
Demurrage complaints surge putting pressure on officials to act
THE dispute over demurrage and per diem overstaying charges has intensified with 100 transport lobbies putting pressure on the US Federal Maritime Commission (FMC) to prohibit late fees for containers and chassis that can't be picked up or delivered on time because of port congestion.
WORLD SHIPPING
17 June 2015 - 07:23
Demurrage complaints surge putting pressure on officials to act
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