It was also noted that the increase in demurrage and detention charge since 2014 can only be partially explained by weather and labour-related congestion problems, but not fully.įIATA calls for streamlined practice on detention and demurrage This investigation is focused on “the practices of vessel operating common carriers and marine terminal operators related to detention and demurrage charges.” The Commission undertook this investigation because of a petition and testimony from a coalition of shippers, intermediaries, and container transport interests.Īn interim report released by the FMC on Septem revealed that the demurrage and detention income of shipping lines in United States increased 90% in 2014 compared to 2013, followed by an additional year-on-year increase of 86% in 2015, dropped 23% in 2016 and then rose again by 30% in 2017. In this context, the FMC (Federal Maritime Commission of the United States) started an investigation referred to as “Fact Finding 28”. It is understood that shipping lines have been suffering in a very tough business environment and do everything they can to develop revenue streams that are not necessarily derived from freight. There are indications that shipping lines abuse the charging of demurrage and detention to maximise profits. Increase of detention and demurrage charges in recent yearsĭuring the last few years, free time periods have been reduced and tariffs for demurrage and detention charges have been increased considerably on a global level. It should be mentioned that, in many cases, the delay in returning or picking up containers cannot be attributed to merchant, but to bad weather conditions, labour strikes and terminal congestions that are beyond the control of merchant. The pick-up, unloading and return of the empty container for an import The loading and delivery of the container for an export This free period is supposed to allow the merchant a realistic period of time for: It is an obligation for shipping lines to provide a reasonable free period during which no demurrage and detention charges apply.
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