Shipping line demurrage charges - unfair ?

Discussion in 'International Business' started by andrewt67, Mar 5, 2018.

  1. andrewt67

    andrewt67 UKBF Newcomer Free Member

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    Our supplier shipped some containers to us from Vietnam to Felixstowe - we bought the containers on basis of CIP our warehouse.

    The containers arrived at UK port and have been cleared through customs - we arranged delivery with the shipping line approx. 2 weeks before the vessel arrived into port and they confirmed the delivery slot.

    As you know, last week was problematical due to weather - we were supposed to take delivery of the container on Thusday 1st March - we received a call from the shipping line to inform us that the container had not been railed due to weather.

    We informed the shipping line that we could quite easily take delivery on Fri 2nd, Sat 3rd, or Mon 5th March. They informed us that the earliest they could deliver the container to us was Thursday 8th March. We informed them that this was OK if it was the earliest available date.

    The shipping line then sent us an invoice for demurrage - despite the fact that it is their failure to delivery to us on time that has caused demurrage to become applicable.

    This seems extremely unfair considering that we were in a position to take delivery earlier.

    Your comments on the above would be appreciated.
     
    Posted: Mar 5, 2018 By: andrewt67 Member since: Mar 1, 2008
    #1
  2. GraemeL

    GraemeL Pain in the neck? Full Member - Verified Business

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    I agree it seems unfair. But that's how it works.

    The shipping line will not care about the weather and its impact on transport. Same scenario if customs choose to x ray a container and it takes so long that demurrage is chargeable - the customer will pay.
     
    Posted: Mar 5, 2018 By: GraemeL Member since: Sep 7, 2011
    #2
  3. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

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    Act of God (whoever he or she might be)
     
    Posted: Mar 5, 2018 By: Chris Ashdown Member since: Dec 7, 2003
    #3
  4. andrewt67

    andrewt67 UKBF Newcomer Free Member

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    Thanks for your comments - we bought the goods on the basis on CIP our warehouse - so could these charges be sent back to origin for payment ?
     
    Posted: Mar 5, 2018 By: andrewt67 Member since: Mar 1, 2008
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

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    Why would they be more willing to pay than you?
     
    Posted: Mar 5, 2018 By: Mr D Member since: Feb 12, 2017
    #5
  6. GraemeL

    GraemeL Pain in the neck? Full Member - Verified Business

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    Nope.
     
    Posted: Mar 5, 2018 By: GraemeL Member since: Sep 7, 2011
    #6
  7. Import Expert

    Import Expert UKBF Regular Free Member

    260 116
    Hi Andrew, As above really. The weather would be classed as an act of god so unfortunately is a case of sucking it up and moving on. On a related note it might be worth in future considering shipping on FOB terms and paying for the freight in the UK. More than often works out cheaper. (I'm not just saying that because I'm in the business). At least its worth getting a comparison.
     
    Posted: Mar 7, 2018 By: Import Expert Member since: Feb 1, 2012
    #7