Demurrage Charges At Cashin Quay

Press, Volume CVI, Issue 31075, 2 June 1966, Page 7

Demurrage Charges At Cashin Quay

It was unlikely that the cost of delivering cargo through Cashin quay would improve until the present system of enforcing demurrage was reviewed, the New Zealand Stevedoring and Wharfingering Company, Ltd., wrote to the Lyttelton Harbour Board yesterday.

Far too much cargo was being left on the floor of the shed until consignees had had the maximum free storage —4B hours after the vessel had completed discharge, the company said.

On the suggestion of its sec-retary-manager (Mr A. J. Sowden), the board agreed to impose demurrage 24 hours after final discharge of the vessel.

The stevedoring company said the only way delivery costs could be reduced was for the consignee to take prompt delivery of cargo in the shed. This could be

achieved by enforcing demurrage on a much stricter basis. Recommending demurrage on a daily basis commencing from the time cargo was received into the stack, the company said any other measure would have little effect. A concession of 24 hours would not make the slightest difference to the attitude of some consignees or their agents. Even when there was some continuity of vessels at the quay, there was a grave danger that the transit sheds would become storage sheds unless more consideration could be given to the prompt clearance of cargo. “It is essential that local consignees be made to realise the importance of prompt-

ly removing their goods from the shed, not only in the

interests of costs, but in the usage of the berth and the turnround of shipping,” toe

company said. When the transit shed was first used toe carrying organisations asked the board to treat demurrage with some leniency until interested

parties became aware of toe procedure, Mr Sowden said. Until there was a continuity of vessels discharging at Cashin quay carrying arganisations would have difficulty in getting full loads for their vehicles, and some consideration should be given to tom before demurrage charges were enforced, particularly as tolls had to be paid every tone a vehicle went through toe road tunnel.

Delivery would improve when the second transit shed was in use. Most delays were caused by consignees who had not cleared cargo through the Customs Department or who did not have toe necessary import licence, Mr Sowden continued. Transit sheds were not storage sheds and some action should be taken against those who did not uplift their cargo within toe prescribed tone. The board agreed that a sub-committee should be appointed to discuss with toe Canterbury Chamber of Commerce toe possibility of equating port charges.