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British International Freight Association Director General, Robert Keen says that freight forwarders and the shippers they work for are reeling from unjust demurrage fees linked to congestion in ports around the world.
''They should not be penalized by demurrage and detention practices when circumstances are such that they cannot retrieve containers from, or return containers to, marine terminals because, under those circumstances, the charges cannot serve their incentive function,'' Keen says.
In the U.S., the Federal Maritime Commission (FMC) concluded in end March after six years of investigation that there had most likely been a long history of unjust and unfair demurrage and detention practices.
Keen adds: ''If the FMC has identified demurrage and detention practices that are likely to be considered as unjust for the USA, these practices are also unjust and unreasonable for the rest of the world.
“Governments must therefore have greater scrutiny over demurrage and detention practices to ensure that they are considerate and reasonable for the good of their own economies. It is crucial to ensure fluidity and good function of the supply chain, in unprecedented times as illustrated by COVID-19 and the chaotic state of international container shipping at present.''
