3PLs such as ocean freight brokers can rise to the challenge of messed up supply chains. This one, Freightos, is introducing a service that guarantees placement of a container on a specific vessel with a known departure date.
How much will shippers pay for this supply chain certainty?
Demurrage and Detention (D&D) charges are commonplace in ocean container shipping. Standard contracts specify a number of days the container may stay in the yer without charge. When the port doesn’t transfer a container within the time limit, the shipper is liable.
The FMC (Federal Maritime Commission) is right now looking into whether ocean carriers and ports are unfairly adding D&D charges to shippers’ bills. Many shippers have been complaining for months that this is happening. But this is the first time one of them has sued the carrier and port, making the dispute public. We’ll now find out, through the court case, the exact sequence of events and the times involved.
The costs for D&D that aren’t in the contract are a complete surprise to the shipper, and come right out of thier profits. Read the story to see what the claims are.
The UK, with Brexit, has been one of the hardest hit nations with driver shortages. Here is some talk on the situation.
Apparently driver shortage surcharges are being added by some carriers, claiming all the money goes to drivers. Who believes that? Some think other carriers are also doing it but not calling it specifically for drivers. Any carrier may or may not be keeping the surcharge themselves, as there is no documentation of where it is going.