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Shippers, logistics firms press FMC to end unfair demurrage charges
THE US Federal Maritime Commission (FMC) is coming under further pressure by disgruntled shippers and logistics companies to provide guidelines on detention and demurrage charges to prevent carriers from coercing unwarranted payments.
In December, a group of 25 shippers and logistics companies, called the Coalition for Fair Port Practices, asked the FMC to address fees imposed on shippers when they can't pick-up and return cargo, containers and chassis for reasons beyond their control.
The FMC has invited comments to be submitted by February 28, and has been posting them on the docket website. The FMC has released several more of those comments, reported American Shipper.
Director of the export division of Northwest Grains International in Minneapolis, Jon Miller, said in his letter that he has witnessed carriers "nickel and diming" shippers and truckers more each year, reported American Shipper.
"The FMC is supposed to maintain a fair shipping industry for shippers, truckers/other vendors and shipping lines," Mr Miller said. "Although, the SSL (steamship lines) and their legal department have found loopholes in the FMC guidelines to abuse customers by putting them in hostage 'have-to-pay' situations.
"In many situations, we will have more expenses for demurrage and other penalties than actually hauling or loading cargo," he said, adding that his company is not asking the FMC to eliminate demurrage but to use its authority to prevent carriers from using this to charge companies and use the situation to coerce payment even if it's unwarranted.?
President of the Tea Association of the USA Inc., Peter Goggi, said many of his members have experienced instances of delays, demurrage and excessive charges driven by situations that are completely out of their control. This has occurred at US ports on both east and west coasts.
"Whether those incident involved weather, labour contract negotiations or other disruptions, the port delays were beyond our members' control," he said.
In December, a group of 25 shippers and logistics companies, called the Coalition for Fair Port Practices, asked the FMC to address fees imposed on shippers when they can't pick-up and return cargo, containers and chassis for reasons beyond their control.
The FMC has invited comments to be submitted by February 28, and has been posting them on the docket website. The FMC has released several more of those comments, reported American Shipper.
Director of the export division of Northwest Grains International in Minneapolis, Jon Miller, said in his letter that he has witnessed carriers "nickel and diming" shippers and truckers more each year, reported American Shipper.
"The FMC is supposed to maintain a fair shipping industry for shippers, truckers/other vendors and shipping lines," Mr Miller said. "Although, the SSL (steamship lines) and their legal department have found loopholes in the FMC guidelines to abuse customers by putting them in hostage 'have-to-pay' situations.
"In many situations, we will have more expenses for demurrage and other penalties than actually hauling or loading cargo," he said, adding that his company is not asking the FMC to eliminate demurrage but to use its authority to prevent carriers from using this to charge companies and use the situation to coerce payment even if it's unwarranted.?
President of the Tea Association of the USA Inc., Peter Goggi, said many of his members have experienced instances of delays, demurrage and excessive charges driven by situations that are completely out of their control. This has occurred at US ports on both east and west coasts.
"Whether those incident involved weather, labour contract negotiations or other disruptions, the port delays were beyond our members' control," he said.
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