Govt to go tough as shipping firms realise detention fees

The Department of Shipping on Wednesday recommended the ministry of shipping take stern actions, including scrapping of licences, if the liners do not comply with its advisory.

Earlier, the DG shipping had issued an advisory to the shipping firms not to charge detention fees/demurrage, considering the fallout of the pandemic.

It also extended the waiver up to May 30.

But the Wednesday’s letter mentioned that many importers and chamber bodies complained of charging detention fees by shipping firms.

The DG Shipping office noted that importers are not taking delivery of goods for higher detention charges, known as demurrage.

It said the impasse over taking delivery of containerised cargos is impacting the country’s economy while disrupting production at the factories.

The DG office, in its recommendation, said the liceces of shipping firms may be cancelled for the violation of its advisory.

It said the port authority has also the power to release containers in favour of importers without complying with detention charges of the shipping companies.

It also recommended the government may revive a section of the Bangladesh Merchant Shipping Ordinance of 1983, which was annulled in 1995 to avoid such a situation in future.

The section 76 of the ordinance stipulates that shipping firms submit of the schedule of fares of certain vessels.
Source: Financial Express

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