The International Federation of Freight Forwarders Associations (Fiata) has called on shipping lines not to levy demurrage charges on containers “captured” in ports due to the knock-on effects of the coronavirus pandemic.According to Fiata director general Stéphane Graber, the extension of the Chinese New Year and shutting down of factories in affected provinces has “a significant downstream effect on the movement of goods, which raises issues for international freight forwarders – especially the position which may be adopted by shipping lines as to their position on container demurrage or detention charges”.According to Mike Walwyn, chairman of the South African Association of Freight Forwarders (Saaff ) Western Cape, containers are being “captured” in ports and freight depots around the world.A recent meeting of Fiata in C a p e To w n was told that there was an increased number of blank sailings in Europe, with vessels bypassing ports in order to restore schedule integrity after delays in Chinese ports. Liner shipping monitor Alphaliner estimates that almost half of the scheduled departures on the Asia-North European trade have been cancelled in the past four weeks, with more cuts to come.Danish analyst Sea-Intelligence estimates that Chinese volumes have fallen by around 350 000 TEU a week since the outbreak of the disease. South Africa is also feeling the effects. At the time FTW spoke to Walwyn a number of vessels had bypassed Cape Town due to wind and in order to catch up on lost time.
INSERT: Fiata's concern is that the lines will use demurrage to reduce revenue shortfalls.– Stéphane Graber