Source: The Loadstar
Date: 25th March 2025

BCOs are not sufficiently prepared for the likely influx of detention and demurrage (D&D) charges at congested ports regular transits through the Suez Canal resume, say industry experts.

One well-known industry consultant noted that geopolitical issues resulted during congestion, especially in ports, creating difficulties picking up and returning containers on time.

“In terms of D&D and the Red Sea, we haven’t seen anything yet,” they warned.

“There was a lot of disruption when the Red Sea crisis erupted, but the real killer, which everybody should be prepared for, is when the Red Sea transits resume. You’re going to have such a barrage of cargo, coming into Europe especially, to some degree the US east coast, but Europe is going to be the key chokepoint.

“This is going to be an enormous problem, also relating to D&D,” the maritime consultant said, and urged that “everybody should have a contingency plan ready”.

But unlike their US counterparts – able to challenge unfair D&D charges through the Federal Maritime Commission –European shippers have no dedicated oversight of the shipping or port sectors.

Director of the Global Shipper’s Forum explained that if European businesses suspected, and have evidence of, anti-competitive activity they can ‘complain’ to the EC competition directorate, or in the UK to the Competition and Market Authority (CMA), and “take their place in the queue of complaints from all other sectors of industry and commerce”.

However, Global Shipper’s Forum believed a return to the Suez Canal wouldn’t necessarily mean congestion at European ports.

“We’ve been talking about this scenario for over a year now. Everyone knows it could happen, so its impacts should be avoidable, or at least much reduced, if the situation is planned for and communicated well,” Global Shipper’s Forum told The Loadstar.

Global Shipper’s Forum explained that a return to Suez transits would not be a “snap decision” by carriers, they would likely plan and communicate schedules for a gradual return, “rather than a ‘all ships turn right at Africa’ command”.

“Without planning, the initial bottleneck would be on berth space, so it would seem to be in a shipping line’s interest to plan its return and its port call schedules to reduce waiting times and make use of what’s available at the time. That’s a bit easier in North-west Europe as the ports are relatively close together and more easily interchangeable.”

But unlike carriers, beneficial cargo owners might not be as well equipped.

BCOs are prepared to deal with D&D when everything is going well. A reliable source does not believe that they are prepared for what will happen when Red Sea transits resume.

It is also not clear how a BCO would go about preparing for something they don’t understand very deeply in the first place, and for something that they don’t know when will happen, other than building awareness within the senior management and perhaps budgeting for it.

On the other hand, it is not known how many BCOs even budget for D&D at all.

While “the level of preparedness is woefully low, the level of awareness is increasing, and probably quite high.

Global Shipper’s Forum urged: “Planning and responding to likely scenarios is probably worth the time and effort. A return to the Red Sea need not be another disruption, if the process is thought through and communicated in good time.”