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Carriers Implementing Fees for No-Show, Rolled Shipments

Carriers Implementing Fees for No-Show, Rolled Shipments - 2011-07-01

Ocean carriers are moving toward space and volume guarantees in agreements with shippers that include fees on both shippers and carriers if either side fails to meet the commitments spelled out in the agreements. APL included such guarantees and mutual penalties in some trans-Pacific contracts with shippers this year. If a customer fails to meet that space allotment within a window of tolerance, it will pay a penalty, and likewise if we fail to meet the service guarantee or the space allotment, we would be required to pay the customer a penalty. The penalty is several hundred dollars per dry container. Maersk Line is developing a similar plan that it will start to roll out on select trade lanes in the third quarter and globally by mid-summer next year. The plan includes what Maesrk calls a “load protection fee” on shippers that fail to deliver booked containers to the port of departure and a similar fee it would pay to shippers for booked containers that are not loaded on outbound Maersk ships. Under the plan, Maersk would allow a grace period for changes or cancellations by the shipper until seven days before the booked departure from the first load port. The charge would be $100 per dry container and $500 per reefer container. Similarly, Maersk will pay the same charges to a shipper for a container that it fails to load on the scheduled ship.  Source: