Find government COVID 19 information at https://sacoronavirus.co.za
Home
FacebookTwitterSearchMenu
  • Subscribe
  • Subscribe
  • News
  • Features
  • Knowledge Library
  • Columns
  • Customs
  • Jobs
  • Directory
  • FX Rates
  • Contact us
    • Contact us
    • About Us
    • Advertise
    • Send us news
Imports and Exports
International
Other
Sea Freight

UK forwarders weigh in on ‘unfair’ demurrage charges

20 Nov 2020 - by Staff reporter
0 Comments

Share

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • E-mail
  • Print

The issue of unjust demurrage charges, which was in the spotlight on this news site recently, has taken centre stage in the UK where the British International Freight Association (Bifa) has sent a strong message to shipping lines.

“Freight forwarders and the shippers they work for are reeling from unjust demurrage fees linked to congestion in ports around the world,” says director general Robert Keen.

“They should not be penalised by demurrage and detention practices when circumstances are such that they cannot retrieve containers from, or return containers to, marine terminals because, under those circumstances, the charges cannot serve their incentive function,” Keen adds.

South African forwarders recently lambasted shipping lines for demurrage bills in this country which amounted to R1.4 billion rand.

The figure was calculated during South Africa’s rigid Covid-19 lockdown levels which resulted in severe disruption to the movement of goods.

A Federal Maritime Commission (FMC) pronouncement in May, issued after six years of investigation with all participants in the supply chain, concluded that there had most likely been a long history of unjust and unfair demurrage and detention practices, according to Keen.

“While there are country and port-related variances, the FMC findings apply globally as demurrage and detention is a common and widespread topic of contention.”

He says that if the FMC has identified demurrage and detention practices that are likely to be considered as unjust for the USA, these practices are also unjust and unreasonable for the rest of the world.

He believes it is wrong for container shipping lines not to respect the interpretative rule introduced by the FMC in May that sought to govern conflicts on the issue of demurrage and detention fees.

“Governments must therefore have greater scrutiny over demurrage and detention practices to ensure that they are considerate and reasonable for the good of their own economies. It is crucial to ensure fluidity and good function of the supply chain in unprecedented times as illustrated by Covid-19 and the chaotic state of international container shipping at present.”

Bifa is urging decision makers to ensure a level playing field for all actors in the supply chain of the reasonableness of demurrage and detention charges. This includes consideration of the extent to which these practices are serving their intended purposes as financial incentives to promote freight fluidity.

“The FMC rule is therefore intended to stop unreasonable and unjust practices to which shippers and freight forwarders alike have been exposed for years.”

Walvis Bay boosts cold chain capacity with new storage facility

Africa
15 Jan 2021
0 Comments

ONE sets up web portal to keep customers updated on ONE Apus

Logistics
15 Jan 2021
0 Comments

Further impetus for greening of the maritime industry

Imports and Exports
15 Jan 2021
0 Comments

Gulf of Guinea records highest-ever number of crew kidnapped in 2020

Africa
15 Jan 2021
0 Comments

Iata welcomes new US travel protocol

COVID-19
15 Jan 2021
0 Comments

Emirates temporarily suspends SA service

Air Freight
15 Jan 2021
0 Comments

More crew change complications emerge as virus mutates

COVID-19
15 Jan 2021
0 Comments

TRADE FINANCE, INSURANCE AND RISK FEATURE: Delivering stability in a volatile market

COVID-19
15 Jan 2021
0 Comments

Manufacturing stats signal rough ride to economic recovery

COVID-19
14 Jan 2021
0 Comments

EAC sends trade bloc reps to monitor Uganda election

Africa
14 Jan 2021
0 Comments

Ghana wastes no time as AfCFTA kicks in

Africa
14 Jan 2021
0 Comments

Eswatini border said to be shut down by Covid case

Africa
14 Jan 2021
0 Comments

Pigeon hitches ride on cargo ship, faces euthanasia

International
14 Jan 2021
0 Comments

Shipping major adds muscle to help rid oceans of plastic

Other
14 Jan 2021
0 Comments

OPINION: Of dunces and blundering at Beitbridge

Border Beat
13 Jan 2021
0 Comments

One-Stop Border Post to ease challenges at Beitbridge

Africa
13 Jan 2021
0 Comments

Botswana assuages fears as fuel from SA is reduced

Africa
13 Jan 2021
0 Comments

SA economy on life support as lockdown continues to wreak devastation

COVID-19
13 Jan 2021
0 Comments

Mbalula’s misleading tweet sows confusion

Africa
13 Jan 2021
0 Comments

Airlines expected to turn cash positive this year – Iata

Air Freight
13 Jan 2021
0 Comments
  • More

FeatureClick to view

Trade Finance, Insurance and Risk Feature January 2021

Column

The race to an integrated fleet solution

Derick De Vries

Border Beat

Eswatini border said to be shut down by Covid case
14 Jan 2021
OPINION: Of dunces and blundering at Beitbridge
13 Jan 2021
One-Stop Border Post to ease challenges at Beitbridge
13 Jan 2021
More

Featured Jobs

Seafreight Operations Supervisor (EE)

Blue Oak Personnel
Port Elizabeth
15 Jan
More Jobs
  • © Now Media
  • Privacy Policy
  • Freight News RSS
  • About Us
  • Advertise
  • Send us news
  • Contact us