In February 2022, The Federal Maritime Commission (FMC) passed regulations on detention and demurrage billing associated with the Ocean Shipping Reform Act of 2022 (OSRA-22), in favor of U.S. shippers facing unfair billing practices.
The National Retail Federation (NRF) submitted over 250 industry comments suggesting the FMC ruling will limit the responsibility for cost among stakeholders involved in the movement of containers at the ports, causing overcrowding and negatively impacting overall network efficiency in supply chains.
NRF COMMENTS REGARDING DEMURRAGE AND DETENTION BILLING
The FMC ruling allocates billing to the shipper, which can be an entity outside of the U.S. or not close in proximity to the port, and therefore has little impact on port operations. If detention and demurrage charges are not financially inconvenient enough for the parties involved, motivation for cargo pick-up is hindered.
The NRF advises all billable parties to be valid for demurrage and detention fees to ensure U.S. ports can maintain efficiency and not add to an already taxing two years of overcrowded terminals and backed up ships. The FMC will issue a final rule by June 2023.
FMC: Demurrage and Detention Billing Requirements – Comments from Industry
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