Lecture on demurrage
ByNajib Cherfaoui, Port and maritime expert.
Abstract: Rethinking Port Authority
Currently, the Moroccan merchant fleet is near extinction, causing maritime transportation to draw nearly two billion dollars from foreign exchange reserves. This budget overrun is brought about by maritime strategy failure (2006) and harbour reform mistakes (2006). In this financial abyss, there are two main components: the first one concerns the purely maritime segment ($ 1.4 billion), and the second one is created by demurrage costs, inherent to the port sector ($ 450 million for vessel waiting time; $ 150 million for container dwell time).
Officials must therefore understand that there is an administrative work deficit. Demurrage costs in particular, remain a key factor in achieving continuous economical growth as they do not correspond to any transfer of goods or services.
Consequently, it is necessary to raise the IQ of port official meetings. The councils meetings (ANP or Marsa Maroc)[1] should not be considered as an assignment imposed by the legislature, but rather as moments of rich and fruitful reflection helping Morocco to set in place a quantified assessment of demurrage. Indeed, it allows the performance evaluation of the entire port system: anchorage, towing, berthing, mooring, handling, storage and removal of goods.
Moreover, this lesson will be very useful to all officials of the Ministry of Equipment and Transport.
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[1] Board of directors for ANP and Supervisory board for “Marsa Maroc”; ANP (National Ports Agency) is the port authority; “Marsa Maroc is a cargo handling company. They are both under the direct government control through the Ministry of Equipment and Transport, according to the Act 15-02, sections 31, 42 and 45; & Decree 2-06-614.