Empty container return chassis demurrage

M

mtltrans

Active Member
10
Hello, we were dealing with a company from the US that was a client of one of our clients. He wanted containers to be moved in the GTA and prepaid his moves.
Everything was fine until the time to return the containers came along. They were to go back to CN for Evergreen. Our agent in Toronto was not able to get return rv's, so we contacted the client and their forwarder (also in the USA). They recommended reaching out to someone at Evergreen in Toronto. Meanwhile, the agent claims nobody answered the phone or emails and racked up 35 days of chassis demurrage at $150/day because Evergreen wouldn't take them back in a timely manner. The guy at Evergreen finally woke up and helped. However, nobody has agreed to the demurrage charges, and the US forwarder has washed their hands. We are left with the Canadian consignee. Otherwise, the agent that is looking for their chassis demurrage is not going to be paid (even though there was proof that the carrier tried to return, screenshots from CN). The guy at Evergreen says he didn't hear from the carrier during that whole time.

What is the best approach because the agent is right to expect some kind of compensation?
Can we use the BOL act to collect? Or should a lawyer be involved?
Should we even try to collect from the Canadian receiver or should it come from Evergreen?
 
P

PackRat

Site Supporter
20
The big issue right now is CN is maxed out. big time. we've been trying to return a container for two weeks. The IFF who owns the container keeps telling us to check for capacity with CN and return it. there were close to 200 spots for this weekend that were booked up since monday/tuesday. you just can't get in there right now and no one cares.....so you either charge the client or you eat the storage....either way someone is paying for CN/CP/IFF's don't give a crap attitude and store it for free!!! :(
 
M

mtltrans

Active Member
10
PackRat said:
The big issue right now is CN is maxed out. big time. we've been trying to return a container for two weeks. The IFF who owns the container keeps telling us to check for capacity with CN and return it. there were close to 200 spots for this weekend that were booked up since monday/tuesday. you just can't get in there right now and no one cares.....so you either charge the client or you eat the storage....either way someone is paying for CN/CP/IFF's don't give a crap attitude and store it for free!!! :(
Click to expand...
Thanks, that appears to be the case. You are so right.
 
M

Mario

Active Member
15
The biggest mistake carriers are making right now is when quoting you have to advise that if there is waiting time at the rail after or before offload that they will be charged. THEY ARE NOT OFF THE HOOK ONCE THE CONTAINER IS EMPTY! Also if the steamship lines are not accepting they will also be charged. But you must email daily the steamship line and the customer in the same email to show proof of you trying and them not accepting. The steamship lines will automatically send a bill once you do return it and if you dont have the emails showing you advised them that THEIR EMPTY RETURN LOCATION IS NOT ACCEPTING IT IS NOT YOUR PROBLEM FOR THEIR DEMURRAGE.

The one you should be billing is the one who gave you the loads. They dont want to take them to court
 
Michael Ludwig

Michael Ludwig

Well-Known Member
20
One can gauge how FUBAR the system is by the number of telephone calls and emails I get requiring dray services. I am, by and large, one of the most expensive domestic dray carriers in the area, so I know that when they reach out to me, there is a real problem in the dray space.
@Mario is correct, always, always, always include the return of the empty, along with potential waiting times in your dray quotes. If you don't cover all your bases from the outset, you have no reason to cry when you get hung out to dry.
@mtltrans ... I am assuming you used a CN chassis? Not much you can do about the charge. You had the chassis. You pay for the priviledge.
Keep in mind sea containers are not a rail asset, ergo they are not a rail problem.
FWIW ... in their current state of disarray, I outright refuse to service a CN ramp at any price.
(Just my humble $0.02 USD worth :))
 
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