Demurrage charge is the amount paid by a shipper to airport operator for utilizing the storage facility at cargo terminals for keeping cargo beyond the stipulated free storage time.
By: Our Correspondent
April 3, 2020: The air cargo community is demanding an unconditional 100 percent waiver of all demurrage charges at all airports in the country as the industry is unable to move their import and export cargo from the terminals due to 21-day lockdown and shortage of manpower.
The airports around the country are reporting congestion of consignments in their cargo terminals especially space-constrained like Mumbai International Airport. Few airports have also come out with innovative solutions like the transportation facilities arranged by Hyderabad International Airport.
The order
The ministry of civil aviation has issued an order on April 1, 2020, by which it has waived 50 percent of demurrage charges levied by airports until April 15. But the order also came with certain ambiguities and conditions which had since confused the air cargo operators and freight forwarders. They are now demanding an order similar to that of Directorate General of Shipping (DGS) which provides a blanket ban on all demurrage charges at all seaports.
Ambiguities
Samir Shah, advisor, Federation of Freight Forwarders Association in India (FFFAI) said “The civil aviation circular is talking about bill of entry being filed, clearance happening, deliveries being taken which all is just not possible. Because how can one take delivery of all consignments lying in air cargo terminals for 21 days in less than 12 working hours on April 16.” 
100 percent waiver.
“Terminals are owned by private individuals who have made large investments and have to pay a royalty to the government. The government should not charge royalties during the lockdown period and terminal operators must waive all demurrage charges to at least 75 to 80 percent if not 100 percent.”
“Expecting people to go to the facilities for clearance is in complete disregard to the government’s call to follow social distancing. Stakeholders are finding it difficult to reach the facilities because of local administrative restrictions even for essential commodities. Anytime a clearance to be done, we need at least 4-7 individuals from different stakeholders to attend to the same file. When we open it up, we will notice that within an hour or two at least 500 to 600 people will all land up in the same place,” he said.
What is called demurrage charge?
Demurrage charge is the amount paid by a shipper or consignee or carrier or agent to airport operator or cargo terminal operator for utilizing the storage facility at cargo terminals for keeping cargo, goods, unaccompanied baggage, stores, courier bags, express parcels and postal mail beyond the stipulated free storage time.
