Maersk: Terminals, railroads will tighten demurrage rules
Terminals and railroads in North America will tighten container free time and possibly increase demurrage rates this year to maximize the use of existing space in their facilities, Maersk Sealand warned shippers in a customer advisory.
Referring to the widespread terminal congestion, rail and truck delays and equipment shortages experienced in 2004, Maersk Sealand said an expected 11-percent growth in container volumes this year points to “an even greater strain” on landside transportation assets.
“In response to this, we expect marine terminals and rail service providers will take measures to improve the flow of equipment through their facilities,” the Danish shipping line said. They will reduce free time and raise demurrage costs.
Maersk Sealand cited several initiatives already taken in this area. Beginning March 15, Maher Terminals in the port of Newark will introduce a tiered demurrage fee structure that increases fees as equipment remains in demurrage, Maersk reported. In addition, effective May 1, Maher will cut free time from five to four days for dry cargo.
Similarly, the Burlington Northern Santa Fe railroad will change its free time and demurrage charges at its U.S. rail ramps. Effective May 1, BNSF will calculate free time in calendar days, including Saturdays and Sundays, where previously the first weekend was excluded. In addition, it will raise demurrage fees.
“We anticipate more marine terminals and rail providers will announce similar adjustments,” Maersk Sealand said. The ocean carrier suggested that this may lead to changes to its own tariff with shippers. It said it will monitor this trend and “align” its demurrage and free time policy with its landside service providers.