Source: Tom Johnston, MEATINGPLACE, 2/13/17

A coalition including the National Pork Producers Council is petitioning the Federal Maritime Commission for relief from port fees when labor disputes put the brakes on cargo shipments.

NPPC said in a regulatory update Friday that dozens of freight forwarding firms, custom house brokers and shippers’ associations have sent letters in support of the petition. They want FMC to make a new rule prohibiting terminal operators and shipping lines from charging detention, demurrage and per-diem fees when labor disputes and other circumstances don’t allow cargo transfer within contracted times.

Cargo owners and trucking companies normally get some free days to pick up containers from ports after they have been unloaded from ships before being charged fees. The federal Shipping Act requires that the fees be “just and reasonable.”

The petition asks FMC to adopt a policy that would require added free days during times of port congestion, weather-related events, port disruptions or delays caused by government actions or requirements beyond the control of the parties picking up or returning containers. Demurrage and similar fees charged during such incidents would be declared “unreasonable.” In some cases, “compensatory” fees could be charged provided they do not exceed actual storage or equipment use costs.

In late 2014-early 2015, work slowdowns at West Coast ports caused major disruptions in pork and other exports and led some exporters to incur fees. The requested rule would apply to ocean carriers and marine terminal operators.

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