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Maersk/Sealand to Pass on Demurrage, Detention Fees Effective May 1, 2005

 

(CIFFA)

The Journal of Commerce reported that Maersk/Sealand said it will start passing through to its customers the charges it is assessed by port, rail and inland intermodal terminals for the late pick-up of cargo by trucking companies.

The carrier said the higher demurrage and detention fees, which will take effect on May 1, are a 'pass-through' of the fees that have been put into effect at the different terminals and inland intermodal locations and that it is not adding on any fees of its own.

At the same time the company said it will reduce the free time for cargo at all U.S. and Canadian inland container depots and several rail terminals, with the number of days depending on the location of the depots or terminals.

The company said the higher fees are part of an effort by the intermodal industry to cut delays and congestion at port and rail terminals, which have been exacerbated in some cases by the late pick-up of containers~.

Maersk also said the company would now bill its customers for demurrage and detention fees after releasing the cargo and would no longer hold cargo containers prior to settling demurrage fees owed.

This is welcome news, as the customer will only be getting one bill from Maersk/Sealand for shipment and demurrage or detention changes, rather than two separate bills, one for shipment form the carrier, and the other for storage from the terminals.

As of May 1, the demurrage charges for dry import containers at most port and rail terminals and inland depots will increase to U$225 a day, and to U$400 per day for reefers, after the expiration of free time. The company said it will reduce the amount of free time at most port terminals and inland depots to four days for dry containers and two days for reefers.

Detention charges for containers that have not been returned to a terminal will increase to U$75 per day for dry containers and U$300 per day for reefers in the first two weeks after free times expires. Free time on dry containers will be set at five days for dry containers and three days for reefers.

This now begs the question whether these demurrage and detention fees will be passed through even when delays are clearly caused by systemic problems of their subcontractors such as terminals, railways and truckers? Will this mean that importers and exporters are expected to pay for the carrier's, or its subcontractors, own shortcomings?


 

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APRIL 14 . 2005