Port Congestion is one of the dreaded words in the dictionary for ship owners, ship operators, ports and customers alike.. It is a situation has several causes and consequences and has a big impact on the supply chain as a whole..
This article unpacks what is port congestion, the causes for port congestion and who is affected..
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.
This is a question that has arisen on the back of rising demurrage and detention charges incurred due to port and terminal congestion at key USA gateways such as Los-Angeles/Long Beach on the West Coast and New York-New Jersey on the East Coast..
Are demurrage and detention charges paid by the shippers to the ports, terminal and shipping lines justified especially in light of the port congestion..??