Yesterday’s poll asking whether shipping lines should be probed for demurrage and detention (D&D) charges has already elicited a strong response in favour of further exploring a prickly issue.
So sensitive is the topic, in fact, that most people we have spoken to since yesterday’s post have commented on the views expressed by Mike Walwyn of the South African Association of Freight Forwarders (Saaff) on condition of anonymity.
Foremost among the polemical insights received is a reader and freight industry representative who said carriers levied D&D charges often without regard for the position faced by shippers and their cargo agents.
He added that in respect of the Port of Cape Town one of the lines in particular based penalty-related charges on expected time of arrival (ETA) dates, billing their clients for D&D when the port was wind-bound and cargo retrieval and container return were days late.
The reader also said: “The likes of Maersk and Safmarine, who centralise their billings, have also billed D&D charges via their automated system based on standard terms using vessel ETA.”
However, actual time of arrival (ATA) of vessels confirmed that the resulting D&D charges were invalid.
Yet in many instances cargo agents have been too anxious to take up the matter with the lines, fearing additional delays, resulting charges, or compromising future shipments through disputed invoices.
He added that this approach seemed to be standard practice among lines, showing “very little remorse and empathy to the industry despite these carriers being aware of the vast variables of the challenges faced during this time”.
A freight forwarder form Cape Town and regular commentator on port-related issues also weighed in on the conversation saying “it’s time we take a united stand against carriers.
“We’re at their mercy while the lines do what they want to.”
He bemoaned the fact that Safmarine had become wholly absorbed by Maersk, saying it did little to avoid monopolistic practices. He also appealed to Saaff to take a stronger stand.
Saaff consultant Walwyn though yesterday said the association was in ongoing deliberation with government, industry and institutions such as the Department of Trade, Industry and Competition over D&D.
Freight News this morning approached Maersk for comment and will update our reporting on this issue once they have responded.
- To participate in our poll, please go to yesterday’s initial report and scroll to the bottom: https://www.freightnews.co.za/article/forwarders-lambaste-lines-over-billion-rand-demurrage-bill
