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            june 20, 2019

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FMC probe backs demurrage charges, but seeks greater transparency


The Federal Maritime Commission (FMC) has approved the recommendations of Commissioner Rebecca Dye that includes the establishment of a Shipper Advisory Board, according to Shipping Gazette.
Her Fact Finding 28 inquiry found that demurrage and detention charges can incentivise cargo to move expeditiously and that standardising practices and fees would speed cargo movement.
Ms Dye also found that having demurrage start when cargo is actually available would eliminate circumstances that lead demurrage charges.
The Commission will now convene Innovation Teams that will address how to providetransparent, standardised language for demurrage and detention practices, clear, simplified, and accessible demurrage and detention billing practices.
"The handoff of a container from carrier to terminal to trucker to destination is not a linear process. Everything is happening at once and that is why it is so daunting a task," she said.
Her report is the culmination of an eight-month examination of the practices of vessel operating common carriers and marine terminal operators in levying charges on shippers.
Said Port of Los Angeles executive director Gene Seroka: "We applaud the thoughtful, collaborative approach taken in the "Fact Finding 28" report. We believe that convening industry stakeholders as soon as possible to further refine policy details is the appropriate direction."

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