Normally shippers are hiring containers to ship their shipments to other countries and other continents. There are not many of them that have their containers. Normally, there is a specific amount of time that a shipper can make use of a container.
With the coronavirus that is affecting the whole world, it is also causing some serious detention fees that shippers are responsible to pay. Some are saying that this isn’t fair, because this isn’t the fault of the shippers that lockdowns and quarantine are responsible for containers to stay in one place. These are some things that you should know about shippers with the detention fees because of the coronavirus.
COVID-19 detention charges explained
First of all, you need to know what the detention fees are for shippers. There is a time that a shipment or container is allowed to stay in one place. This is because of the storage or because of the fact that the container was rented.
If the container isn’t getting shipped back in a certain period, the shipper that rented the container is paying penalties. These penalties will get higher and higher, the longer the container is in one place. The shipper can’t take the container, not before the detention fee is paid for.
Why is the coronavirus responsible for excess fees?
Now, you might ask why the coronavirus is responsible for so many shippers paying detention fees. This is because of the many restrictions that different countries have at the moment. Many containers, products, and ships are stranded.
No one is allowed in and out of the different countries. Meaning that the containers can’t get shipped back. But, because of the different contracts, the shippers are still responsible for returning the containers before the deadline. Because of the coronavirus, the containers are stuck in one place.
Is this fair to the shippers?
The question now is if this is fair to the shippers. They didn’t ask for the different restrictions and lockdowns of ports and ships. And, they didn’t ask for the virus to prevent the containers to return to their rightful owners.
It isn’t fair and there should be something done to ensure that containers are getting shipped back in a reasonable time. Or, that the time limit should be extended in which the containers should be returned. This is a serious problem for the shippers, but this is only one of many problems that the virus is causing the shipping services.
What can be done for the shippers?
Is there something that can be done for the shippers? They can delay the detention fees, or cancel the detention fees temporarily until the virus is under control and until everything is returning to normal again.
However, this isn’t as simple as canceling the detention fees. The space for storing containers in each port is limited and there needs to be space for new containers coming in. There should be another solution to ensure that containers are getting shipped back, without any problems or delays. They should implement a system during the coronavirus period to ensure that all containers are getting returned without problems.
Shippers have a problem with the coronavirus that is shutting down many ports. The detention fees because of containers not getting sent back to the original country. However, this isn’t the fault of the shippers that ports are getting locked down, and they should not pay the price for it. There should be a solution to getting the containers sent back and without anyone paying penalties and taking responsibility for the delays in the containers getting delayed.
Since its founding back in 1892, BCR Australia has continued to help small, medium and large businesses achieve an optimum logistics solution with warehousing, customs brokerage and transportation, including air freight and sea freight services to and from the major ports including Brisbane, Sydney, Melbourne, Adelaide and Fremantle (Perth).