ACA seeks rulemaking on unfair port fees

BETHESDA, Md. (Feb. 23, 2017) — The Federal Maritime Commission (FMC) should begin a formal rulemaking to ensure that port fees assessed during shipping disruptions should be fair and equitable, the Auto Care Association (ACA) said in comments to the FMC.

In its Feb. 21 comments, the ACA said the FMC should grant the petition of the Coalition for Fair Port Practices to create a policy that would prevent unfair demurrage and detention fees in the case of work stoppages and other disruptions at U.S. ports.

Demurrage fees are fees assessed on cargo kept for longer than standard times inside a cargo terminal.

Detention fees are assessed on cargo kept outside the terminal.

"Auto Care Association members have reported repeated incidents of disruption in port operations and severe congestion at container terminals," ACA President and CEO Bill Hanvey wrote.

The Hanjin Shipping Co. bankruptcy in August left $14 billion in cargo stranded at sea, according to Mr. Hanvey. The uncertainty of who would pay for docking fees, container storage and unloading bills left dozens of ships unable to dock at ports around the world, he said.

"Regardless of the reasons behind port delays, shippers and truckers are often charged demurrage and detention penalties when circumstances arise beyond their control," Mr. Hanvey said.