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International Shipping
American detention and demurrage fines double in 2021
Date:2021-07-19 Readers:
CONTAINERS coming into the largest US import gateway can face detention and demurrage charges over US$2,500, triple the global average, reports IHS Media.

Globally, those fees are up sharply due to demand surges, resulting in vessel delays and port congestion.

Transpacific shippers could get hit with an average $2,638 detention and demurrage charges for containers that sat over two weeks at the Port of Long Beach, while the Port of Los Angeles, during the same time period was $2,593.

The average detention and demurrage fee was $720 across the largest global ports.

Container xChange declared the global average fee was for detention and demurrage on 20-foot standard and 40-foot standard and high-cube containers.

Import volumes hitting the ports and their speed moving containers is the primary factor driving up the fees.

"In today's market, containers can be stuck at the ports for an exceptional amount of time. That, in turn, means it's become ever more challenging to uphold the agreed free days, making demurrage and detention [more] likely," said a report discussing the increased fees.

Said Container xChange: "When containers became scarce commodities in China, the shipping industry came under pressure to keep up with the demand worldwide. This led to carriers wanting a quick turnaround for their containers. A way to make that happen is through fees."

https://www.shippingazette.com/menu.asp?encode=eng

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