Cargo interests to fight against demurrage

Ed Greenberg, counsel for the National Customs Brokers and Forwarders Association of America, said the association, along with other groups, will submit a petition to the FMC on behalf of its members that feel they have been incorrectly assessed demurrage.    Cargo interests are about to step up their fight against what they consider improper assessment of demurrage fees charged by container terminal operators.
   Ed Greenberg, counsel for the National Customs Brokers and Forwarders Association of America (NCBFAA), said Monday the association, along with other groups he didn’t name, will soon submit a petition to the Federal Maritime Commission (FMC) on behalf of its members who feel they have been incorrectly assessed demurrage.
   There was much discussion by NCBFAA members on the sidelines of the association’s Government Affairs Conference in Washington, D.C. Monday about demurrage charged when the cargo interest has no control over its ability to pick up a container.
   One Norfolk-based broker/forwarder told American Shipper demurrage was the biggest operational pain point at her company’s branch. She said cargo interests shouldn’t be penalized when issues like snow prohibit their ability to enter a terminal to collect containers.
   FMC Chairman Mario Cordero, in a speech to the conference, said it’s difficult for shippers and their representatives to approach marine terminal operators when there’s little publicly available operational data released by the terminals.
   He noted that terminals do release such data, but later said, “let’s not use opportunities for revenue enhancement that’s not fair to the American shipper.”
   This is not the first time the NCBFAA has approached the FMC to settle the demurrage issue. The association asked Cordero in 2011, in his first public speech after being named to the commission, to look into demurrage.
   The issue reared its head again in early 2015 as crippling port congestion in U.S. West Coast ports resulted in huge demurrage bills for some shippers and logistics providers. And earlier this year, Cordero essentially told cargo interests they needed a formal complaint or petition for the FMC to formally address the issue.
   In April 2015, the FMC did issue a report on demurrage, noting the fees were having a “negative impact” on movement of ocean cargo.