TIA is offering a new member benefit: a new best practice guide for avoiding unnecessary detention and demurrage charges when working with ocean carriers and marine terminal operators. These new guidelines are available to all TIA members under the "Other Resources" section on the Members Only page of the TIA website.
Detention and demurrage charges are a contentious issue around the world, and the Federal Maritime Commission (FMC) is currently investigating the issue in the U.S. TIA helped found the Coalition for Fair Port Practices in 2016. This group of shippers, intermediaries, and carriers filed a petition with the FMC in December 2016 to encourage them to provide guidance on what constitutes reasonable charges for detention and demurrage. Earlier in 2018, the FMC held a thorough hearing on the petition that solicited input from shippers and beneficial cargo owners, intermediaries and port truckers, ocean carriers, and marine terminal operators. The FMC subsequently began a fact-finding investigation on the issue and will issue a full report, including recommendations for further action, by December 2018.
Definitions and terms for the levying of detention and demurrage charges vary between ocean carriers and marine terminals. The best practices guide as approved by the International Federation of Freight Forwarders Associations (FIATA), of which TIA is the lone representative from the United States, offers practical guidance for commercial negotiations between supply chain partners. TIA members and their customers should not be subjected to unjust and unreasonable charges. This document helps provide insight into how to avoid those costs.
For more information on TIA’s work on the detention and demurrage issue, or to participate in TIA’s International Logistics Conference, please contact TIA Advocacy at advocacy@tianet.org.