FMC examines whether detention fees actually accelerate cargo movement
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The signal
The US Federal Maritime Commission is examining whether detention and demurrage charges above compensatory costs actually speed cargo movement.
The agency recognizes a critical distinction: charges can only incentivize faster clearance when shippers control the delay, but fail when delays stem from external factors like government holds or missing trucking appointments.
As port congestion rises, disputed detention charges may proliferate.
What This Means for Your Supply Chain
What if detention charges increase 50 percent during peak congestion periods?
Model the impact of elevated demurrage rates on container dwell times and shipper cost structures when port congestion rises, accounting for delays outside shipper control versus operator-controllable delays.
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