Expect Disputes at Port of Baltimore

The ship owner is denying responsibility for the collapse of the Francis Scott Key Bridge in Baltimore on March 26. Lawyers petitioned U.S. district courts of Maryland citing why the ship owner was not at fault. While the blame game plays out in court, U.S . regulators are expecting a slew of disputes over excess fees being charged to shippers unable to utilize the port.

Carriers have already notified shippers impacted by the Baltimore port closure to expect delays and added costs for their containers. If a container has not yet loaded at origin, some carriers are giving shippers the option to choose an alternative port of arrival. While this sounds fair, they are making it clear to shippers that the containers will be terminated at the alternate port. All inland cost involved on the U.S. side will be the responsibility of the shipper. It is the right of the carrier to declare “Force Majure” and push the fees to shippers. It may be legal, but it has many shippers upset over the added costs.

Containers moving to alternative ports may be faced with another challenge other than added costs. Carriers are warning of a potential chassis shortage due to the increase in containers at the alternative ports. This could cause detention and demurrage issues only adding to the increased costs. The Federal Maritime Commission (FMC) has already indicated that the new demurrage and detention rule, which goes into effect on May 26, could help resolve the future disputes anticipated from this issue. 

There is some good news. The Port of Baltimore is working to open the port for ocean container traffic on a limited basis sometime in April. The target date for the full opening of the port is the end of May.