| Rising Container Detention an Insidious Consequence
of Shipping Capacity Squeeze
The shipping capacity squeeze on containerised imports into Australia and exports to overseas markets is having many impacts on shipment delays, equipment availability, "rolled" cargo, and unprecedented rising ocean freight rates. Many industry analysts are indicating that the rates and space challenges are set to continue throughout 2021 and 2022.
As Australia moves into its traditional "peak season" with continued strong import and seasonal export demand, one insidious consequence of the current shipping capacity squeeze is the potential for rising container detention costs imposed by shipping lines on import and export container equipment.
CTAA doesn't dispute that shipping lines have the right to impose container detention fees if shippers hold onto container equipment too long. But, some detention policies and practices are questionable, and CTAA supports calls for a Federal Government-led review, and the establishment of a Federal Regulator with powers to investigate the validity of container detention fee demands.
Meanwhile, container transport operators across Australia are continuing to have conversations with their import and export customers about liability for container detention fees. This includes the terms & conditions of the landside transport task as to when and in what circumstances transport operators may or may not accept liability for empty container de-hire or export container delays. These are commercial matters between transport operators and their customers.
Download a CTAA Media Release: HERE |