FIATA Proposes Best Practices in Demurrage and Detention

The Working Group – Sea Transport of FIATA announced a Best Practices guide for Demurrage and Detention charges in Container Shipping.

• Detention and demurrage charges should not accrue indefinitely. There should be a limit, “ideally, the value of the purchase price of a new container.”
• Free time should cover delays outside the Merchant’s control because merchants have no direct recourse for delays caused e.g. by customs inspections or port congestion.
• Penalties for late pick-up / return should be waived during customs inspections.
• No preference for carrier haulage. Carriers should also waive detention and demurrage charge where on-carriage is arranged by the merchant.
• Reasonable export demurrage free time. So that Merchants are not exposed to detention and demurrage charges merely for proper regulatory compliance.
• No charge for vessel delay.