FMC Reviewing Demurrage Charge Assessment Practices

The Federal Maritime Commission is "evaluating" the use of port congestion-related demurrage fees by carriers and terminal operators, said FMC Chairman Mario Cordero in testimony Feb. 25. Cordero discussed the agency with the House Marine Transportation Subcommittee during a hearing (here). "Many shippers" say such fees are unfair, he said. "With disappointing frequency, the Commission is receiving complaints by shippers about how shippers are repeatedly told that they may not retrieve a container due to on-dock congestion or delays at the gate. Worse yet, some shippers find out that once the container is finally made available, the carrier and marine terminal operator will not release it until the shipper pays demurrage for not picking up the container before free-time expires. " The question of the legality of such charges recently came up in relation to congestion issues at the West Coast ports (see 1411180015).