AVERAGE demurrage and detention charges dropped 25 per cent in 2023, with a significant 14 per cent decrease compared to the rates in 2020, as found by Container xChange's annual Demurrage and Detention Charges benchmark report 2023, reported the American Journal of Transportation.
However, there are still 11 ports where demurrage and detention fees remain higher as compared to 2020. These ports include Antwerp, Jebel Ali, Ningbo, Port Kelang, Rotterdam, Shenzhen, Singapore, Tianjin, Xiamen, Hong Kong, and Guangzhou.
In a webinar, a panel of speakers from Drewry, S&P Global, and Container xChange discussed the impact of these charges on shippers worldwide.
Said Drewry's Chantal McRoberts: 'There are multiple factors contributing to the inability of these ports to return to normal. Increases in energy prices, coupled with higher labour costs, and escalating land expenses and port fees, have all played a part. New regulations on green energy in EU ports have added to the financial burden. Additionally, the introduction of rules requiring individualised shipment customs clearance, no longer consolidated under one bill of lading, has proven to be time-consuming, as seen in the case of Rotterdam.'
Said Container xChange CEO Christian Roeloffs: 'A key factor in whether you must pay detention charges is the efficiency of your monitoring. How quickly can you act and notify your agent or trucker if something goes wrong. Is the container being forgotten at the terminal? Timely communication is crucial in avoiding unnecessary charges.'
Said S&P Global Market Intelligence and JOC's Eric Johnson: 'Many didn't expect the demand to recover until after the Lunar New Year next year. If we assume that's the case, the focus shifts to operational issues at important ports that we need to consider in avoiding delays or additional charges.'
Out of all the ports worldwide, those in North America stand out as the most expensive when it comes to Demurrage and Detention (D&D) charges. Leading this list of costly ports are New York, Oakland, and Los Angeles, taking the top three spots.
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However, there are still 11 ports where demurrage and detention fees remain higher as compared to 2020. These ports include Antwerp, Jebel Ali, Ningbo, Port Kelang, Rotterdam, Shenzhen, Singapore, Tianjin, Xiamen, Hong Kong, and Guangzhou.
In a webinar, a panel of speakers from Drewry, S&P Global, and Container xChange discussed the impact of these charges on shippers worldwide.
Said Drewry's Chantal McRoberts: 'There are multiple factors contributing to the inability of these ports to return to normal. Increases in energy prices, coupled with higher labour costs, and escalating land expenses and port fees, have all played a part. New regulations on green energy in EU ports have added to the financial burden. Additionally, the introduction of rules requiring individualised shipment customs clearance, no longer consolidated under one bill of lading, has proven to be time-consuming, as seen in the case of Rotterdam.'
Said Container xChange CEO Christian Roeloffs: 'A key factor in whether you must pay detention charges is the efficiency of your monitoring. How quickly can you act and notify your agent or trucker if something goes wrong. Is the container being forgotten at the terminal? Timely communication is crucial in avoiding unnecessary charges.'
Said S&P Global Market Intelligence and JOC's Eric Johnson: 'Many didn't expect the demand to recover until after the Lunar New Year next year. If we assume that's the case, the focus shifts to operational issues at important ports that we need to consider in avoiding delays or additional charges.'
Out of all the ports worldwide, those in North America stand out as the most expensive when it comes to Demurrage and Detention (D&D) charges. Leading this list of costly ports are New York, Oakland, and Los Angeles, taking the top three spots.
SeaNews Turkey