Unfair practices exposed

Carlos Rodriguez, a partner of Husch Blackwell in the US wrote the following diatribe about unfair carrier and terminal practices on the firm’s website, under the title: “Port Congestion Damages: The Politics of Low Hanging Fruit”.

“On door delivery moves, the carriers, notwithstanding what the service contracts state to the contrary, inevitably have tariff regulations stating that any demurrage that results is for the account of the shipper (importer) even on a door move. This is clearly not a reasonable tariff rule - i.e., the carrier has undertaken the responsibility with its own truckers to deliver the goods to the shipper’s door but if they don’t do it timely, then the shipper pays demurrage or any resulting detention charges. Readily this is an unreasonable regulation by the carriers/terminals and thereby, unlawful pursuant to the Act. A shipper has no obligation to pick up the container from the terminal or the railhead, and has no control over the means of delivery, but is held responsible for demurrage and detention by a tariff rule. The carrier on the other hand, does have these obligations, collects the demurrage from the shipper for what it (the carrier) is unable to do.

“Activities at terminals such as chassis shortages (caused by carriers that have given up the means of delivery, the chassis), alliance practices, inadequate terminal operations (inability to find containers causing incredible delays), labour slowdowns, etc. – could all be the basis for a finding that charging detention due to inability to return equipment in a timely manner is an unjust and unreasonable practice. Common sense dictates that since all the contributing factors which have resulted in exaggerated detention charges to shippers and truckers is carrier/terminal related – and none shipper related – that such charges are being unreasonably levied. The carriers/terminals have taken a strict liability approach to the situation ‘no matter who is at fault, the shipper pays’. This is clearly, an unreasonable condition.”

Source: American Shipper