A final rule was issued today by the Federal Maritime Commission (FMC) addressing new obligations for demurrage and detention billing charged by marine terminal operators (MTOs) and common carriers. The rule, effective May 28, 2024, includes detailed information on processes for disputing bills, invoicing, and time frame.
FMC RULE SPECIFICATIONS
The rule requirements state that detention and demurrage invoices cannot be issued simultaneously and can only be issued to the consignee or the person whose account the billing party provided ocean transportation or cargo storage.
The rule also states MTOs and ocean carriers are obligated to issue invoices within 30 days of the incurred charges. However, non-vessel operating carriers are obligated to issue invoices within 30 days from the issuance date of the invoice they received. All parties billed are given 30 days to make waiver, refund, or fee reduction requests. Finally, the billing party is given 30 days to resolve the situation, unless there is an agreement made among both parties for a longer timeframe.
The goal for the FMC in issuing this rule is to mitigate issues with demurrage and detention billing that involve failure to pick up or return cargo in a timely manner and the appropriate fee. Requiring particular information and documentation that are mentioned in this rule will hold respective parties accountable and create a more seamless process across supply chains.
Stay up-to-date on freight news with Green’s Weekly Freight Market Update by following us on Facebook, Twitter, and LinkedIn. For continuous updates, make sure to check out our website at greenworldwide.com.
