World Shipping Council Defends Carriers to FMC
The Federal Maritime Commission should take a narrow approach in dealing with the issue of demurrage and free time, said the World Shipping Council in a letter to FMC Chairman Mario Cordero (here). The group pushed back against the "sweeping…
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claims that the practice of adhering to established free time limits and assessing detention and demurrage during times of serious port congestion is 'unfair and unproductive.'" Such complaints were submitted by industry groups in a recent letter to the FMC (see 1504280010). There are multiple issues involved with port congestion and "it cannot be blamed on the size of ships or vessel sharing alliances," said the WSC. "Resolution of the problems will require a concerted set of actions involving all parties. Those solutions will need to be tailored to the specific problems in specific locations." There's "no regulatory action that will address the combination of causes of port congestion or that can equitably resolve or simplify the various complex market forces trying to deal with the unavoidable issue of cost recovery," it said.