Freight News, Sea

Demurrage charges double, says FIATA

[ July 16, 2021   //   ]

Demurrage and detention charges have doubled, resulting in complains across the US, Europe and Asia, reports the FIATA international forwarder group.

Schedule reliability in the face of the Covid pandemic are now at an all-time low resulting in a total absence of predictability, whilst freight rates are at record high levels, it says.

FIATA adds that freight forwarders and their customers – many of whom are small and medium-sized enterprises – are particularly hard hit by these rocketing prices, being increasingly subjected to spot contracts with high price volatility as compared to longer-term contracts held by beneficial cargo owners.

Demurrage and detention charges have been addressed by US President Joe Biden in a White House Executive Order signed on Friday, 9 July 2021. The order, aimed at promoting competitive markets across the US economy, encourages the Federal Maritime Commission (FMC) to ensure vigorous enforcement against exorbitant demurrage and detention charges. It comes amid the recent signature of an agreement between the FMC and the US Department of Justice for greater cooperation in assessing antitrust concerns in the maritime sector.  

FIATA meanwhile continues to call on policymakers and shipping lines to ensure that charges are proportionate and fair and to apply the FMC principles.