US leather and meat groups join plea for end to ports disruption
Leather & Hide Council of America, Meat Import Council of America and North American Meat Institute are among those asking the Federal Maritime Commission to suspend detention and demurrage charges.
Demurrage is a charge payable to the owner of a chartered ship on failure to load or discharge the ship within the time agreed.
The signatories said: “We respectfully ask you to explore all available powers and authority to immediately suspend detention and demurrage charges, which are being unfairly and unreasonably assessed in the Ports of Los Angeles and Long Beach, as well as the Port of New York & New Jersey by ocean carriers and marine terminals.
“Collectively, our members have paid well over $150 million in unreasonable detention and demurrage charges this year in the twin Southern California ports and the port of New York & New Jersey due to the massive congestion.”
They suggest that operational inefficiencies have led to backlogs, shortages of space and congestion in ports.
They added: “We all know that the covid-19 pandemic has created disruption throughout the supply chain. However, as the US economy and companies continue to recover, they should not have to be worried about congestion and additional costs that will further impact their businesses and recovery efforts. We must work collectively to address the systemic issues.”
