Congestion due to the increased size of individual vessels calling at the terminals
Presently terminals around Los Angeles / Long Beach are experiencing significant delays and congestion. The delays are particularly affecting box ships and in part this is believed to be due to the increased size of individual vessels calling at the terminals, with an extra 7 to 10 days being taken to shift cargo. There has also been a shortage of dryage, which is believed to be contributing further to the delays being suffered.
The Skuld P&I Club has issued advisory to advise operators that intend to call at LA/Long Beach to be aware of the present situation. They would need to make a practical and contractual planning in order to address the following potential issues which can arise.
- management of fuel on board vessels (note : California requires 0.10% sulphur content fuel)
- claims for delay by customers
- claims for off hire / force majeure
- the extra importance on giving valid Notices of Readiness for laytime and demurrage purposes
- deviation, trans-shipment and re-routing of vessels and cargoes
Some of these matters are practical, such as ensuring vessels that only had small amounts of 0.10% sulphur content fuel on board are resupplied to ensure they can continue to comply with California’s specific ship fuel requirements (which came in to force at the beginning of 2014, in advance of the wider implementation of the 0.10% sulphur content ECA under Marpol Annex VI as of January 2015).
Other matters are more of a contractual nature, such as delay claims or trans-shipment and members will need to ensure both charter terms as well as bill of lading clauses have the necessary liberties and limitations in place to ensure they are protected against possible claims arising.
Skuld says that it is also important to ensure that if it is necessary to deviate or trans-ship a vessel or cargo, that contact is made in advance with the Association so that the cover position can be checked and if necessary additional cover can be put in place, should a given situation necessitate the same, so that operators continue to enjoy the full coverage of their P&I cover.
Source: The Skuld P&I Club
