The Ocean Shipping Reform Act will require common ocean carriers to adhere to best practices and regulations around demurrage and detention. Our CEO, Nimesh Modi, had the pleasure of offering his insights and predictions on this act at the virtual Intermodal Summit with FreightWaves. Modi describes the problems the Reform Act will help solve, including more transparency around common carrier operations, drayage operations, and technology improvements.
Quotes:
“Demurrage and detention is a highlighted point of this whole bill. When you see the value of these [charges], it’s humongous. Sometimes the value of the container looks very small compared to the charges on the container for staying at the terminal for three to four weeks.”
“It used to take two months to get a container [in the United States] back to China for re-export. Now it has increased substantially because a lot of those containers are delayed due to demurrage issues.”
“[If this reform passes] people will be more educated. They will now know if they don’t pre-plan or approach their supply chain proactively, it’s going to cause more problems.”
https://www.freightwaves.com/news/intermodal-summit-ocean-shipping-reform-can-create-proactive-supply-chains