Logistics Firm’s Demurrage Fees Lack Transparency, Violate Shipping Act, US Supplier Tells FMC
U.S.-based Omni Logistics violated shipping regulations when it failed to include required information on demurrage invoices for more than 200 containers, said TPG Pressure, a U.S. supplier of construction equipment and services. In a complaint to the Federal Maritime Commission dated Nov. 29, TPG said it was forced to pay Omni more than $860,000 in unfair fees before the company released its cargo, adding that Omni also invoiced TPG an additional $362,000 for “alleged services and costs.”
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The FMC should declare that Omni violated the Shipping Act and require it to pay “reparations” to TPG, the supplier said. The commission should also order Omni to put in place new fee practices to “preclude Omni from demanding that TPG pay unsubstantiated and unlawful charges,” TPG said.
TPG, which supplies concrete, steel, fiberglass and polymer pipes and structures, said it contracted Omni last year to ship containers from foreign ports to the U.S. Omni’s service quotes didn’t include information about demurrage, TPG said, and the logistics company never informed TPG about its demurrage policies. TPG said it believes Omni “has no such policies.”
Omni worked with ocean carriers to transport TPG’s containers and began issuing invoices to TPG in November 2021, which included demurrage charges that TPG said were “excessive.” The company also said the invoices lacked information and were “utterly insufficient to enable TPG to assess the propriety of demurrage charges and to mitigate damages.”
The invoices didn’t include the date the container was made available, the allowed free time, the start or end date of that free time, the rate of the charge, contact information for questions about the charges or mitigation requests, or a statement that the charges were consistent with the FMC’s detention and demurrage rules, TPG said. The company also said it received some of Omni’s invoices four months after the ocean carrier had issued the invoice to Omni, “making mitigation of damages practically impossible.” Omni also “demanded” payment from TPG for invoices it never provided, TPG said.
Just before TPG filed its complaint with the FMC, the company said Omni sent it demurrage invoices for deliveries that were nine months old. These “belated invoices” didn’t include copies of supporting bills of lading, TPG said, as well as other documents needed to explain the charges. TPG also said some of the invoices “inexplicably included up to nine days of chassis charges, but TPG said it has records showing the containers were returned the same day they had been delivered to their destination.
Despite disputing the charges, TPG said it paid more than $860,000 for demurrage and other fees so that Omni would release the cargo. “Omni presently further demands that TPG pay an additional $362,123.94 for alleged services and costs,” TPG said.
The company said it “repeatedly” asked Omni to provide information to support the charges, but Omni “refused.” Omni also “terminated TPG’s access to a shared internet location that hosted a file that tracked shipments and associated fees and costs,” the complaint said. “Accordingly, TPG is unable to verify the veracity of charges Omni has assessed.”
Omni didn’t respond to a request for comment.