Crux Systems Insights

Increasing dwell times and demurrage fees

January 16, 2019 by Jennifer Colvin |

News, Terminals

Over the past month, we've seen an increase in average dwell times and demurrage fees for containers coming through West Coast ports.

“There are significant backlogs of cargo not getting out of terminals. Will the free time be extended? The signs of this coming were certainly there," said our CEO Eric Klein.

A number of factors came together to create a perfect storm, with the results being congestion at the terminals. An influx of cargo was shipped in advance of the upcoming tariffs, combined with a chassis shortage and warehouse space nearly at capacity - all of which have contributed to the problem.

For more details, see Eric Johnson's article from JOC: Detention-demurrage fees hit LA-LB port shippers.