Why Demurrage & Detention fees are killing ocean shippers

Shipping and Freight Resource Opinion

International trade continues to experience growing pains related to demurrage and detention charges.

Unfortunately, global transport interpretations result in an assumption that these terms are interchangeable.

Depending on the origin and destination, they have different meanings, especially in the U.S. In fact, the Federal Maritime Commission (FMC) took the exuberant step to eliminate confusion and streamline port management.

While beneficial, the new interpretive rule still leaves room for error, notes FleetOwner, lacking the force of legally bound duties.

To avoid an assumption of decreased demurrage and detention fees and keep ocean freight spend under control, shippers need to understand their real impacts and how these fees amount to significant issues in the global supply chain.

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