24 Februari 2021

[240221.EN.SEA] FMC Demands Terminals, Liners Justify Detention, Demurrage Fines

 

CARRIERS and terminals will be questioned about the fairness of detention and demurrage charges by the Federal Maritime Commission (FMC), reports IHS media.

Federal maritime regulators have ordered container lines and marine terminal operators in the ports of Los Angeles, Long Beach, and New York and New Jersey to explain how they justify such charges.

The FMC's decision comes as dozens of vessels are regularly anchored in southern California, and following complaints from truckers and importers about a surge in penalties due to port congestion.

In a February 1 report, the Harbour Trucking Association (HTA) of Southern California said its members disputed more than US$3 million in detention or demurrage fees in 2020, of which 65 per cent were tied to no available appointments either to pick up a container or return empties.

Of those incurring penalties, the HTA said fines exceeded $200 per container in eight of 10 cases and surpassed $500 in two out of 10 situations.

Weston LaBar, CEO of the Harbour Trucking Association, said the decision shows the FMC is willing to go beyond interpretative rules and to hold supply chain stakeholders accountable for their decisions.

"It's time for the Federal Maritime Commission to exert more control over how our industry operates and we would probably support something more aggressive. I think this is a great step forward for the FMC," Mr LaBar said.

Source : HKSG / Photo : Total Transportation Services.

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