New California law designed to rein in detention and demurrage charges

California again takes the lead in denying demurrage and detention charges by marine terminals and intrmodal equipment providers, such as chassis providers, when return is prevented by actions outside the control of the users. Such conditions might include gates being unavailable for return, a provider diverting the equipment from the original intrchange location, and when the carrier documents an unsuccessful attempt to return the item, or because a vessel’s booking date is changed.

All these changes will be good for the business. They will force carriers and equipment providers to pay attention to the effects of congestion, and work to reduce it.

Congratulations to California for this law. Now let’s see how it works.

John Kingston Wednesday, October 5, 2022

New California law designed to rein in detention and demurrage charges – FreightWaves

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