Ports

Port Congestion to Trigger Wave of Disputed Detention Charges

Port backlogs are poised to generate a surge of contested detention and demurrage invoices in coming weeks, according to Sara Dandan, founder of FourOneOne. Current congestion at Los Angeles and Long Beach, where 34,000 containers await rail movement, will likely translate into billing disputes as invoices hit in November. Empty container return difficulties compound the challenge. Truckers face exposure to charges for delays beyond their control, Dandan warned. The U.S. Federal Maritime Commission has determined demurrage and detention fees exist to incentivize cargo movement, not penalize operators for circumstances outside their control. When delays stem from terminal closures, unavailable appointments, holidays, or restricted empty container returns, the justification for imposing charges diminishes significantly. Dandan noted such operational constraints, rather than carrier negligence, typically drive container detention disputes. Looming port strikes are expected to exacerbate these issues further.