Industry Groups Call on FMC to Take Action on Demurrage Fees

The recent Federal Maritime Commission report on free time and demurrage fees shows that the agency already has enough information to take action, said dozens of industry groups in an April 27 letter to FMC Chairman Mario Cordero (here). The agency's report, released earlier this month (see 1504140014), outlined several paths of action, but asked for additional industry input. While the report provides a "good foundation," the FMC should "take action to address these issues," said the groups, including the National Customs Brokers and Forwarders Association of America and the Consumer Electronics Association.

Cargo owners and motor carriers "are frustrated" by the charges "when factors beyond their control make it impossible for them to return chassis or empty containers, or pick up or drop off loaded containers within free time limits," the groups said. Such practices "may potentially violate the Shipping Act," they said. "While additional documentation may be needed on industry specific complaints, we believe the record is already well established that limiting free time and assessing and collecting demurrage and per diem charges from port stakeholders who are not responsible for the port congestion gridlock is both unfair and counterproductive to finding much needed solutions for improving port operational efficiencies," said the groups.