© Luigi Angelica
News

The National Shippers Advisory Council’s perplexities

Congestion, shippers voice their concerns

by Port News Editorial Staff

You think it can’t get any worse than this? You haven’t seen anything yet. The anti-congestion fines introduced by the ports of Los Angeles and Long Beach are only going to  exacerbate an already critical situation.

On the day of the first meeting of the National Shippers Advisory Council (NSAC), a new body set up by the Federal Maritime Commission consisting of 12 importers and 12 exporters from the United States, the shippers took to the field and criticized the new measures put in place by the two Californian ports to combat the quay congestion problem.

From November 1st, in fact, carriers will be charged $100 per day for each container that stays in port for nine days or more if it to be transferred by truck, and for three days or more if it to be sent on by rail. The fee will increase by $100 per day for each additional day of delay beyond the established limit.

According to the NSAC, carriers will, in turn, charge the extra fee to shippers. Basically, they will substantially increase demurrage charges, which are the penalties due for completing unloading  or loading operations that haven’t been carried out within the terms of the contract.

In short, the risk is that the cure is worse than the disease.

Translation by Giles Foster