9 November, 2023

Sea transport: complaints of detention costs and demurrage in the United States

The new U.S. law on shipping allowed shippers to make claims to the FMC (Federal Maritime Commission), on the detention costs and demurrage they considered excessive, particularly during the pandemic.

The Federal Maritime Commission (FMC), which regulates the overseas shipping sector, has registered nearly 400 complaints from shippers in the last 14 months, three times as many as two years ago, mainly for detention and demurrage issues. It's theOcean Shipping Reform Actof 2022 (OSRA-22), reform of the U.S. regulations on shipping (cf.Sea freight: first step for the US law on shipping), which led to the emergence of these cases, the US shippers have long been complaining of undue costs of immobilization and demurrage (cf.Shipping: Strike movements in ports generate extra costs for shippers). 

To date, the majority of the FMC's investigations into these claims have been resolved amicably, with repayments to the key. Over the past year, $2.89 million in sanctions have been applied against carriers who could turn against terminal agents and operators.

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Source:

Source(s): FMC

Editor(s): C.BEDOUIN

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