INTERNATIONAL MARITIME
IMPORTING | EXPORTING | PORTS | CARRIERS | BREAKBULK | GLOBAL LOGISTICS
22 THE JOURNAL OF COMMERCE www.joc.com DECEMBER 14.2015
By Bill Mongelluzzo
BENEFICIAL CARGO OWNERS and truckers
continue to challenge fees they incurred
for the late pickup or return of containers
during the West Coast port congestion
problems this past year, but with decidedly
mixed results.
Shipping lines and marine terminals
levied millions of dollars in demurrage and
detention fees beginning in November 2014
when work slowdowns by the International
Longshore and Warehouse Union caused
the worst congestion West Coast ports have
experienced since the 2002 coastwide con-
tract negotiations with the Pacific Maritime
Association.
Terminals charge demurrage for late
pickup containers after allowable free stor-
age time expires. Ocean carriers charge
per-diem detention for late return of their
containers to terminals.
According to the Intermodal Association
of North America, which administers the
Uniform Intermodal Interchange and Facili-
ties Agreement, 137 detention claims for late
return of equipment were submitted under
the UIIA dispute-resolution process. Arbi-
tration decisions have been reached for 49 of
those claims, IANA said. Four arbitrations
were decided in favor of the motor carriers,
28 in favor of the equipment providers for
the original invoiced amounts, and 17 were
split decisions.
Some BCOs chose to take their com-
plaints over demurrage and detention
charges directly to court. Elkay Plastics, an
importer of plastic bags, filed a class-action
lawsuit involving more than 1,000 simi-
larly situated shippers against 10 terminal
operators and 11 equipment providers in Los
Angeles-Long Beach, charging the maritime
interests violated California law by impos-
ing late fees in relation to a labor disruption.
The ILWU work slowdowns began in
Seattle and Tacoma on Oct. 31, 2014, and
spread the next week to Los Angeles, Long
Beach and Oakland. Congestion began
to build soon after the slowdowns began.
Employers responded in early 2015 by
eliminating lucrative night and weekend
work opportunities for longshoremen, and
gridlock ensued. The so-called hard-timing
ended immediately after a tentative contract
was reached on Feb. 20, but port congestion
continued through April.
Congestion at marine terminals ham-
pers truckers' ability to take delivery of
imported
containers during the period of
free time when containers can be stored at
the terminals before late fees are charged.
Port tariffs in Southern California provide
four days of free storage time for the pickup
on imported containers, after which demur-
rage is charged.
Likewise, when loaded containers are
taken to a warehouse or distribution cen-
ter for unloading, the BCO must return the
empty containers to the equipment provider
within a specified time or pay per-diem
detention fees.
BCOs and their truckers charge in their
complaints that West Coast ports were so
congested during the six months beginning
in early November 2014 that even if trucks
SEEKING TO RIGHT
'WRONGFUL' FEES
Shippers and truckers continue their battle
over West Coast demurrage and detention claims
