Letter from the Editor

When a container is inspected, it can expose cargo owners to demurrage.

By Mark Szakonyi

Scrutiny of US container imports and exports by US Customs and Border Protection( CBP) and other federal agencies hasn’ t been this intense since the aftermath of 9 / 11, according to cargo owners, customs brokers and trade specialists.

The federal government doesn’ t disclose how often CBP or other federal agencies“ hold” an export or import shipment to verify compliance. But many in the trade industry say there’ s been a significant ramp-up in cargo holds since President Donald Trump on June 3 ordered CBP to crack down on importers headquartered abroad.

Holds can be caused by a wide range of issues, from a misdeclaration error that can be remedied in hours to physical container inspections delaying shipments for weeks. The approach to enforcement also differs widely depending on the seaport of entry, with some ports known to have CBP staff that are more collaborative and knowledgeable than others.“ The administration is weaponizing customs,” said Beth Pride, founder and president of trade advisory firm BPE Global.“ That’ s just the reality of it all. And customs knows how to track things down, slow them down, disappear things, and create issues.”

She said that the executive order prompted an exodus and firing of informed compliance agents.“ Anyone who is still there has been moved to focus only on enforcement.”

CBP told the Journal of Commerce it provides training and career development to its staff and values its partnership with the trade community, working to streamline processes while upholding security.

“ Cargo examinations are a critical component of our mission to prevent the entry of illicit goods, protect intellectual property, and ensure compliance with US trade laws. These decisions are based on risk-based targeting and intelligence, not arbitrary enforcement,” a CBP spokesperson said in a statement.

The ramp-up in customs enforcement also appears to be hitting exporters. When merchandise imports into Southern California slow down, CBP scrutiny shifts to outbound shipments, including inspecting all export containers, according to a representative of Harvest Logistics, a non-vessel operating common carrier( NVO). The bill for storage costs and other fees can rise to roughly $ 8,000 to $ 12,000 per shipment, which often exceeds the value of the cargoes.

“ We have not experienced this level of disruption, even during the events following 9 / 11,” the NVO said.

When a container is inspected by federal agents, it can tie up other containers on the same bill of lading, exposing cargo owners to demurrage fees as inspection times surpass socalled free time granted by the terminal.

Such was the case for glass importer Saverglass, which had a container inspected by the US Department. The process took 17 days but also delayed nine other containers on the same bill of lading, racking up storage and other fees. The bill to get the 10 containers released from the marine terminal totaled nearly $ 45,000, according to Joey Armstrong, inbound logistics and trade compliance manager at Saverglass. Saverglass, a member of the Agriculture Transportation Coalition( AgTC), is disputing the charges and has discussed next steps with the US Federal Maritime Commission( FMC). AgTC Executive Director Peter Friedmann argues that demurrage accrued due to a government hold is out of the control of the cargo owner. Under the FMC’ s incentive principle, demurrage is considered reasonable if it incentivizes the flow of cargo, rather than penalizes the shipper.

“ If it’ s an incentive, then [ the terminal ] could say,‘ Come in and take your container,’” Friedmann said.“ If you can’ t come in and take the container out, then it’ s just a penalty.”

Marine terminal operators contend that it’ s the cargo owner’ s responsibility to fulfill customs requirements, and they are thus liable for storage fees. Free time gives the shippers a reasonable period to address issues with federal authorities, said Carl Bentzel, president of the National Association of Waterfront Employers. Days in which containers were impacted by cargo holds should be counted toward tiered, escalatory daily rate systems.“ Once they are in, they remain in demurrage,” he added.

Marine terminals’ argument for when demurrage is reasonable suffered a legal blow on June 22, when the US Court of Appeals upheld an FMC ruling that detention fees levied against a trucker during a three-day port closure were illegal. Bentzel, however, argues detention, a fee for failing to return empty container equipment on time, should be viewed differently since, unlike demurrage, it has a more limited impact on terminal fluidity. When he was an FMC Commissioner, Bentzel was the lone dissenter in the agency’ s ruling against Evergreen in 2022.

FMC Chairman Laura DiBella said in a statement to the Journal of Commerce that while each case has its unique circumstances, generally“ government holds are similar to port closures in key respects, and an analysis of the reasonableness of demurrage and detention practices must look at whether the actions they are intended to incentivize can actually happen.”

email: mark. szakonyi @ spglobal. com

4 Journal of Commerce | August 3, 2026 www. joc. com