Shipping lines no longer entitled to claim limitless detention and demurrage charges
Confederation des Expediteurs de Belgique (CEB), the Association Member of FIATA in Belgium, reported two interesting verdicts made by the courts of Antwerp on demurrage and detention where the shipping lines claim the costs for a particularly long period.
In a verdict made on 18th March 2019, the Court of Appeal in Antwerp ruled that in this case, when a container is not returned within one year after the end of the free time, the container should be considered “lost”, the shipping line can only claim the replacement value of the container and the detention costs for the past year.
Courts rules that costs are not is proportion with disadvantages suffered by the carriers.
The court decided that, claiming detention costs for a particularly long period is considered to be “manifest exaggerated”, based on the fact that the costs are disproportionate with the subject of the contract and the actual disadvantage accrued by the shipping line.
In another cased ruled on 20th March 2019, the containers were never picked up by the customer/consignee and the containers were seized by the Customs Authorities 2 months after arrival at the port of destination. The shipping line charged demurrage and storage costs over a period of more than 4 years.
The Court decided that, as from the moment the customs authorities took possession of the goods, charging of demurrage and storage costs by the shipping line is no longer justified. In addition, the claimed demurrage/detention costs are a compensation clause rather than an accessory of the freight. A compensation clause is eligible for moderation by the Court, the court can even mitigate to zero if no actual damage has been suffered.
©FIATA
