At the recent 2018 FIATA World Congress New Delhi, India, FIATA launched a Best Practice Guide focusing on Demurrage and Detention in Container Shipping. The Guide outlines 10 Demurrage and Detention scenarios with suggested methods to adopt for each. Below is a short piece from FIATA about the Best Practice Guide focusing on Demurrage and Detention in Container Shipping.
FIATA Multimodal Transport Institute Working Group Sea is pleased to announce the release of its first "Best Practice Guide" focusing on the charging of demurrage and detention. The guide provides best practices that may help reduce unnecessary supply chain costs and inefficient operations leading to unnecessary detention and demurrage charges.
FIATA acknowledges that demurrage and detention charges are a valid and important tool for shipping lines to ensure that their equipment is being returned as fast as possible and users exceeding the contractual duration of use should be charged accordingly.
However, merchants should not be subjected to unjust and unreasonable charges. In this context, there are strong indications that shipping lines abuse the charging of demurrage and detention to maximise profits. It is understood that shipping lines have been suffering in a very tough business environment and do everything they can to develop revenue streams that are not necessarily derived from freight. FIATA does not believe that forwarders and shippers should be subjected to predatory pricing of this nature, especially as delays often occur through no fault of the forwarder / shipper.
FIATA hopes the guide can provide orientation to its members and all stakeholders as to which conditions are adequate. We also look forward to closer collaboration with shipping lines and the various stakeholders throughout the port supply chain.
A copy of the Best Practice Guide can be access by clicking the image below.
