NIT LEAGUE QUESTIONS “BLANKET IMPOSITION” OF U.S. WEST COAST SURCHARGES

NIT LEAGUE QUESTIONS “BLANKET IMPOSITION” OF U.S. WEST COAST SURCHARGES

NIT LEAGUE QUESTIONS “BLANKET IMPOSITION” OF U.S. WEST COAST SURCHARGES

   The U.S. National Industrial Transportation League said that shippers “should not necessarily accept a blanket imposition” by ocean carriers of congestion and other charges related to the recent U.S. West Coast port shutdown.
   A number of ocean carriers have declared “force majeure” as a result of the port congestion and delays, and some have introduced congestion surcharges.
   “Some carriers asserting these claims have informed customers that shipments will not be delivered to the West Coast port identified as the destination for the shipment in the bill of lading issued by the carrier, but will be delivered to an alternative port of the carrier’s choosing,” the NIT League said. “Carriers have also informed customers that they must pick up their cargo at the alternative port or that the carrier would arrange for the transportation of the cargo to the original destination at the shipper’s expense.”
   Having sought legal advice, the NIT League believes that carriers’ claims of force majeure may not be proper in all cases, particularly if a claim was asserted after the lockout ended and performance (or delivery) by the carrier is no longer impossible.
   The imposition of additional costs on shippers — such as for transshipment, storage, or demurrage — depends on specific contractual terms under the service contract concerned or the bill of lading, the League said.
   The League understands that a number of carriers are relying on bill of lading terms to impose additional charges for shipments destined to the West Coast ports.
   “However, it is also informed that it is not uncommon for service contracts to be drafted to override the carrier’s bill of lading,” it said. In this case, the carrier will not be able to recover additional charges.
   Last week, the U.S. Federal Maritime Commission issued a public advisory to remind carriers of their obligations under 1984 Shipping Act.
   “Any surcharges published in tariffs that are designed to address the consequences of continuing congestion at U.S. West Coast ports generally should not be instituted without the required 30-day notice, and may be applied only in conformance with the applicable ‘effective date’ rule,” the FMC said.