After similar initiatives by other companies, it is now the South Korean giant Samsung that has filed an official complaint with the Federal Maritime Commission against a carrier regarding detention and demurrage, i.e. the charges levied respectively for the temporary storage of containers in and outside port terminals beyond the free deposit period.
The shipping company in question is ZIM, with which Samsung Electronics America (SEA) signed a contract in early 2020 to transport goods by sea as well as by land from ports to distribution facilities.
According to the South Korean company, on more than one occasion the liner failed to fulfil its customer obligations by failing to remove SEA’s containers from terminals or repeatedly failing to deliver them to designated locations.
As a result of the carrier’s misconduct, described by the company as ‘repeated and chronic’, SEA has been incurring increasing expenses for transporting its goods within the country.
Although ZIM was directly responsible for the delays in goods delivery, it would not have hesitated to charge Samsung US for the extra costs resulting from the application of the D&D tariffs.
The company argues that it has suffered serious, substantial damages, and considerable financial losses, as a result of ZIM’s ‘unreasonable and illegal’ conduct.
According to the reconstruction provided by the company, the carrier allegedly demanded the payment of these tariffs, which were openly contested by SEA, threatening to take punitive action against SEA in the event of non-payment of the amounts due.
The problem has long been known to those in the industry. Already two years ago, the European association of international forwarding companies, logistics service providers and customs agents (CLECAT) had raised the issue by gathering up-to-date information on detention & demurrage, revealing in certain cases the abuse by shipping companies of their position and sending a letter to DG MOVE asking for a careful assessment of the application of these charges.
Translation by Giles Foster
