A recent incident involving a Shenzhen-based freight forwarding company has exposed the growing risks in cross-border e-commerce logistics. Eight shipping containers remain stranded at U.S. ports with accumulated demurrage fees exceeding $130,000 (¥900,000 RMB), highlighting systemic vulnerabilities in global supply chains.
Supply Chain Crisis Leaves Merchants in Limbo
The freight forwarder, specializing in U.S. FBA first-mile services, collapsed due to cash flow problems, leaving cargo owners facing impossible choices. While some containers were retrieved to warehouses by secondary forwarders, merchants report being forced to collectively shoulder demurrage fees while paying duplicate shipping charges.
Six containers have now languished for over 70 days at New York and Los Angeles ports, with fees continuing to accumulate. Originally shipped from Yantian Port between early July and early August, the cargo missed its mid-August delivery window. Compounding the crisis, the forwarder allegedly owes primary carriers over $180,000 (¥1.3 million RMB) in unpaid freight, leaving smaller merchants at risk of total loss.
America's Ports Top Global Demurrage Charts
Container xChange research reveals U.S. ports lead worldwide in detention and demurrage (D&D) fees. New York ranks highest, where standard containers incur average fees of $3,182 after 14 days, followed by Long Beach, Los Angeles, Oakland and Savannah.
The report shows global average D&D fees surged 38% from $586 per container in 2020 to $868 in 2021. While these charges exacerbate forwarders' financial strain, industry analysts note multiple contributing factors including:
- Persistent port congestion and labor disruptions
- Weak risk management among smaller forwarders
- Operational inefficiencies in container repositioning
Protecting Your Business in Turbulent Markets
As shipping volatility continues, cross-border sellers must implement robust safeguards:
1. Vetting Forwarding Partners:
- Verify business licenses and industry reputation
- Prioritize established firms with stronger financials
- Demand transparent, itemized cost breakdowns
- Scrutinize contract terms regarding delays and fees
2. Risk Mitigation Strategies:
- Diversify across multiple logistics providers
- Secure comprehensive cargo insurance coverage
- Implement real-time shipment tracking systems
- Maintain proactive communication channels
3. Market Intelligence:
- Monitor evolving trade policies and customs regulations
- Track port congestion metrics and sailing schedules
- Stay informed through industry reports and analysis
The incident serves as a stark reminder that in today's disrupted supply chains, proactive risk management separates thriving businesses from those facing catastrophic losses. Cross-border sellers must combine due diligence with operational flexibility to navigate these challenges successfully.