FMC Referred to as Upon to Cease Unfair Congestion Expenses to Shippers
Shippers are uninterested in paying the value for port congestion, and rightly so.
Demurrage, detention, and per diem charges have unfairly been charged to shippers on high of the misplaced cash and abroad partnerships importers and exporters have suffered as a result of ports being unable to maneuver shippers’ imports and exports.
Now the Federal Maritime Fee (FMC) is being requested to do one thing about these unfair costs.
If you happen to observe Common Cargo Administration’s weblog, you’ve seen put up and article after put up and article about port congestion.
Port congestion was already an issue earlier than slowdowns occurred final 12 months on the West Coast because of contract negotiations between the Worldwide Longshore & Warehouse Union (ILWU) and the Pacific Maritime Affiliation. After all, the congestion was made a lot worse in the course of the contentious negotiations that merchandise didn’t make it to retailer cabinets for the vacations and U.S. agricultural merchandise rotted on the docks as an alternative of being exported.
These items alone price shippers loads of cash, however so as to add insult to harm (or higher but, harm to harm), demurrage, detention, and per diem charges have been charged to shippers as effectively.
Was the congestion the fault of shippers? No! But shippers have been pressured to pay via the nostril. And shippers say they’ve had sufficient.
If shippers have delivery containers on the docks which can be caught in congestion, it isn’t their fault the delivery containers can’t be eliminated. And it actually just isn’t for a scarcity of making an attempt. Shippers want that freight to get to its closing vacation spot!
Such unfair costs hit others within the provide chain, too. Freight forwarders, truckers, and trucking corporations have been hit with these devastating double whammies together with importing and exporting producers, distributors, and retailers.
The Los Angeles Customs Brokers and Freight Forwarders Affiliation (LACBFFA), together with 94 different organizations despatched a letter to the FMC calling for the federal company to place an finish to those unfair costs and “to make sure that a standard service or terminal operator gives simply and affordable laws and practices regarding receiving, dealing with, storing or delivering property.”
Their authorized floor requesting motion from the FMC appears strong as effectively.
Fortuitously, the LACBFFA forwarded a duplicate of the letter to its members, which implies that we right here at Common Cargo Administration are capable of share it with you, our delivery weblog readers.
Here’s a copy of the total letter to the FMC, together with the checklist of the 95 organizations it’s from:
June 10, 2015The Honorable Mario Cordero
Chairman
Federal Maritime Fee
800 North Capitol Avenue, N.W
Washington, D.C. 20573Pricey Chairman Cordero:
We’re following up on our letter of April 27 concerning the FMC’s report on Guidelines, Charges, and Practices Regarding Detention, Demurrage, and Free Time for Containerized Imports and Exports Transferring By way of Chosen United States Ports. Our organizations characterize importers, exporters, producers, retailers, distributors, wholesalers, farmers, truckers and different provide chain stakeholders. We once more commend the Fee for releasing the report, which highlights the numerous considerations of shippers, receivers, ocean freight forwarders and motor carriers who have been assessed demurrage or detention costs in periods of peak congestion at our nation’s ports, though they weren’t chargeable for the delays that triggered the evaluation of the fees. We consider it’s now time for the Fee to take motion to handle the problems detailed in your report.
We strongly consider that the Fee has full authority underneath the Delivery Act of 1984 (46 U.S.C. § 41102(c)) to make sure that a standard service or terminal operator gives simply and affordable laws and practices regarding receiving, dealing with, storing or delivering property. We consider this part of the governing statute applies to the foundations for software of detention and demurrage charges which can be printed in service and terminal tariffs or schedules and to the practices adopted by such events in assessing these costs. Specifically, we consider these penalty funds needs to be prohibited when components past the management of the shipper, receiver or motor service make it unimaginable for them to return chassis or empty containers, or decide up or drop off loaded containers inside free closing dates.
We’re calling upon the Federal Maritime Fee (FMC) to take motion on this challenge of unfair and unwarranted demurrage, detention, and per diem costs paid by helpful cargo homeowners (BCOs) and their motor carriers when circumstances forestall well timed pickup and drop off of containers and associated tools. We consider the Fee can and will pro-actively guarantee on a going-forward foundation that service and terminal guidelines and practices for assessing demurrage/detention in opposition to a shipper, receiver or drayman are affordable, and it ought to forestall the evaluation of such costs when there may be port congestion or different occasions that trigger delays which can be past the management of the shipper, receiver or motor service.
We stand able to work with the Fee to supply extra concepts and recommendation on this important challenge. Thanks on your consideration.
Sincerely,
Agricultural Retailers Affiliation
Agriculture Transportation Coalition
Almond Hullers & Processors Affiliation
Airforwarders Affiliation
American Attire & Footwear Affiliation (AAFA)
American Affiliation of Exporters and Importers
American Chemistry Council
American Cotton Shippers Affiliation
American Forest and Paper Affiliation
American Frozen Meals Institute
American Import Shippers Affiliation
American Potato Commerce Alliance
American Pyrotechnics Affiliation
American Soybean Affiliation
Affiliation of Meals Industries
Auto Care Affiliation
California Farm Bureau Federation
California Recent Fruit Affiliation
California League of Meals Processors
California Trucking Associations
California Retailers Affiliation
CAWA – Representing the Automotive Components Business
Cookware Producers Affiliation
Columbia River Customs Brokers and Forwarders Affiliation
Customs Brokers and Forwarders Assoc. of Northern California
Customs Brokers and Worldwide Freight Forwarders of Washington State
Trend Equipment Shippers Affiliation (FASA)
Footwear Distributors & Retailers of America (FDRA)
Forest Sources Affiliation
Furnishings Shippers Affiliation
Gemini Shippers Affiliation
World Automakers
World Chilly Chain Alliance
Grocery Producers Affiliation
Inexperienced Espresso Affiliation
Halloween Business Affiliation (HIA)
Harbor Trucking Affiliation
Institute of Scrap Recycling Industries, Inc.
Intermodal Motor Carriers Convention
Worldwide Affiliation of Refrigerated Warehouses
Worldwide Perfume Affiliation, North America
Worldwide Refrigerated Transportation Affiliation
Worldwide Wooden Merchandise Affiliation
Juvenile Product Producers Affiliation
Los Angeles Customs Brokers and Freight Forwarders Affiliation
Meat Importers Council of America
Midwest Meals Processors Affiliation
Midwest Shippers Affiliation
Motor & Tools Producers Affiliation
Motorbike Business Council
Nationwide Alfalfa & Forage Alliance
Nationwide Affiliation of Chemical Distributors
Nationwide Affiliation of Egg Farmers
Nationwide Affiliation of Producers
Nationwide Rooster Council
Nationwide Cotton Council
Nationwide Council of Farmer Cooperatives
Nationwide Customs Brokers and Forwarders Affiliation of America
Nationwide Fisheries Institute
Nationwide Oilseed Processors Affiliation (NOPA)
Nationwide Onion Affiliation
Nationwide Pork Producers Council
Nationwide Retail Federation
Nationwide Strategic Shippers Affiliation (NASSTRAC)
New Jersey Motor Truck Affiliation
North American Export Grain Affiliation
North American Meat Institute
North American Shippers Affiliation, Inc.
North American House Furnishings Affiliation
Northwest Meals Processors Affiliation
Pacific Coast Council of Customs Brokers and Freight Forwarders
Pacific Northwest Vegetable Affiliation
PPAI – Promotional Merchandise Affiliation Worldwide
Retail Business Leaders Affiliation
San Diego Customs Brokers and Forwarders Affiliation
Specialised Carriers & Rigging Affiliation
The Hardwood Federation
The Nationwide Industrial Transportation League
The Waterfront Coalition
Toy Business Affiliation
Transportation Intermediaries Affiliation
Journey Items Affiliation (TGA)
U.S. Apple Affiliation
U.S. Trend Business Affiliation
U.S. Cover, Pores and skin and Leather-based Affiliation
United Recent Produce Affiliation
US Dry Bean Council
USA Dry Pea & Lentil Council
Washington Farm Bureau
Washington Retail Affiliation
Washington State Hay Growers Affiliation
Washington State Potato Fee
Washington Trucking Associations
Western Growers Affiliation
World Commerce Heart – Kentucky
CC: Commissioner Rebecca F. Dye
Commissioner Richard A. Lidinsky, Jr.
Commissioner Michael A. Khouri
Commissioner William P. Doyle
