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The International Federation of Freight Forwarders Associations (FIATA) urges shipping lines to review and reinstate the current free time periods back to no less than feasible, pre-pandemic levels.
FIATA notes that it is the obligation of shipping lines to provide a reasonable free period to allow the merchant sufficient time for the loading and delivery of containers for export and the pick-up, unloading and return of empty containers for import.
During the last few years, free time periods for containers have been reduced, and consequently, tariffs for demurrage and detention have increased considerably. Shipping lines justify shorter free time periods noting that they will increase fluidity and help to ease congestion. The justification forces merchants to make considerable efforts to meet free time windows, leading to landside congestion and above all, traffic jams around major ports and terminals. However, merchants are charged detention and demurrage fees even in situations where they had no control over the container turnaround time, despite their best efforts, due to congestion at ports.
With reduced volumes shipped, the strain on supply chain bottlenecks has come down, and congestion has since eased substantially. The idle capacity of containers that were stuck in congestion are now also coming back into circulation. Industry feedback notes that the combination of older equipment having been kept in service, and production of new containers at record levels, would lead to a period where the available container fleet outweighs demand for its use.
“Now is the time to act to optimize container movements and improve container quality for future use,” FIATA claims.
