Empty Container De-hires & Demurrage
To Valued Customers & Partners,
Operational Challenges
Our operational capacity is improving, however high volumes, staff absences, and lack of labour continue to be an issue; we do not foresee this improving anytime soon. Container unpacks range between 14-30 per day depending on the arrival port, commodity, and vessel scheduling. In addition to this, we have also begun to receive information that congestion is emerging at receivers’ sites; some simply have no space to take cargo. We understand that high order volumes earlier this year are beginning to affect storage capacity at end receiver sites which also has a backward effect at depots that have been struggling with space for some time now
Container De-hire & Demurrage
The biggest issue we’re facing right now is the container de-hire & demurrage situation which remains at a critical level nationwide. Empty parks are at full capacity causing delays with securing de-hire slots and subsequently impacting transports’ ability to be able to dehire empty containers in a timely manner after container unpacking. Additionally, transport providers arriving with empty containers are regularly redirected to another empty park, sometimes multiple before being able to finally dehire. Currently, Medlog empty park in Melbourne is not accepting containers and there are no redirections in place so transport operators are being told to hold onto containers at their expense.
Empty Container Park Cost Increases & Capacity Constraints – Impacts
Given the current conditions, SILA is not in a position to accept responsibility for any container detention that may be incurred as a result.
We are continuing to monitor the situation and will keep you posted as the situation changes, for better or worse.
In the meantime, SILA and our transport partners continue to do everything possible to de-hire containers in a timely matter, and we thank you for your patience, understanding, and kindness to staff through this period.
In the meantime, should you have any concerns, please don’t hesitate to reach out to your SILA Sales representative.
Thank you,
SILA Global Pty Ltd