FIATA tells shipping lines to be ‘good citizens’ during ongoing China coronavirus outbreak

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Friday, 07 February 2020

Transport restrictions in the wake of China’s ‘new coronavirus’ have prompted the International Federation of Freight Forwarder Associations (FIATA) to warn shipping lines about container charges. 

 “The recent position of the Chinese government and Provinces to extend the Chinese New year as well as new restrictions on the movement of people in China has a significant downstream effect on the movement of goods which raises issues for international freight forwarders, especially noting the position which may be adopted by shipping lines as to their position on container demurrage or detention charges,” said doctor Stephane Graber, director general of the International Federation of Freight Forwarder Associations (FIATA). 

In relation to the international movement of goods, the curtailment of flights to China by airlines will severely impact airfreight imports and exports because such freight mainly is uplifted as bellyhold cargo and this is an issue outside the control of international freight forwarders in meeting client expectations. 

However, in the sea freight environment, FIATA has significant concern as to the position that may be adopted by shipping lines on containers ‘captured’ in ports or freight depots, particularly in China. 

In noting shipping line practice on container charges, FIATA has a long-held position on this aspect which was articulated in its recent submission to the US Federal Maritime Commission Inquiry on container demurrage and detention charges and which is set out in FIATA’s Best Practice Statement on Container demurrage and detention. 

The FIATA position is clear ... where events are outside the control of the international freight forwarder (which is happening in China) then shipping lines need to address their position on the levying of such charges. 

Graber said: ”The China event should not be seen as an opportunity for shipping lines to make windfall profits to offset other expenses of operation.  This is a time for these entities to exercise corporate responsibility which meets community expectations in such difficult circumstances. FIATA, its members and the trading community at large will watch with interest how this responsibility is exercised.”