A form of distress at sea
The tune is well-known, as it’s being played over and over again. The world’s major carriers aren’t only maximising profits thanks to exploding prices, whilst putting in questionable performances, but have also not adjusted their fee structures to the exceptional situation.
Ever more calls for order can be heard these days. According to Fiata, the International Federation of Freight Forwarders Associations, there are further problems looming, beyond the fact that “schedule reliability is at an all-time low, whilst freight rates are at record high levels.” Recent reports have shown that demurrage and detention charges have more than doubled vis-à-vis 2020; having grown by 104%. They are now said to amount to more than USD 1,200 per container, on average.
Many complaints have been submitted to shipping authorities in the USA, Europe and in Asia. Fiata reminded the industry of guidance from the USA’s FMC in docket No. 19-05, a final ruling on demurrage and detention under the shipping act, and called on policymakers and shipping lines “to ensure that their demurrage and detention charges are proportionate and fair,” in the interests of a level playing field for international trade flows.
