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FMC introduces updated detention and demurrage billing procedures

Posted on March 4, 2024 |

New rules from the Federal Maritime Commission (FMC) issued new rules on how to control the demurrage and detention charges billed by common carriers and marine terminal operators (MTOs).

These rules will mostly take effect on May 26, 2024.

Billed parties have at least 30 calendar days to request charge reduction, refund, or waiver.

The billing party must aim to resolve any requests within 30 calendar days unless a longer deadline is agreed upon.

Demurrage or detention bills can only be issued to the party responsible for maritime transportation or storage of cargo, or the contracting party for ocean transportation or storage.

FMC stresses that demurrage or detention charges cannot be served on multiple parties simultaneously, with bills required to be sent within 30 calendar days of incurring costs.

Non-vessel operating common carriers must issue demurrage and detention invoices within 30 calendar days of receiving the invoice.

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