FMC: Most of Demurrage, Detention Billing Rule Remains in Effect Despite Court Ruling
The Federal Maritime Commission is reviewing a federal court decision issued this week that said the FMC’s 2024 demurrage and detention billing rule (see 2402230049) arbitrarily and capriciously exempted motor carriers from being assessed those fees (see 2509230039). "The Commission is reviewing the court's opinion and will take appropriate action going forward," a commission spokesperson said in a Sept. 24 email.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Although the court struck down the portion of the rule that limits which parties can be assessed demurrage and detention invoices, the FMC spokesperson stressed that shippers and carriers must continue complying with the rest of the rule. The rule describes the information carriers and marine terminal operators must include in their invoices, clarifies under what time frames parties must be billed, outlines the processes for disputing charges, and more.
"The majority of the rule remains fully in effect. This includes provisions requiring carriers and marine terminal operators to issue invoices no later than 30 calendar days from when charges were last incurred, and provisions guaranteeing billed parties at least 30 calendar days to make fee mitigation, refund, or waiver requests," the FMC spokesperson said. "Additionally, the rule continues to ensure that certain information must be included in demurrage and detention invoices. Failing to include any of the required information eliminates any obligation of the billed party to pay the charges."