FMC Publishes Final Rule on Detention and Demurrage Billing Practices

The Federal Maritime Commission issued a Final Rule today establishing new requirements for billing demurrage and detention charges, specifying who can be billed, when invoices must be issued, and the process for disputing bills. Key provisions include:

1. Invoices can only be issued to the cargo owner or consignee, defined as the final recipient of the cargo.
2. Vessel-operating carriers and terminal operators must issue invoices within 30 days of charges accruing.
3. Billed parties have 30 days to request fee mitigation, refund, or waiver, and billing parties must attempt to resolve disputes within 30 days.

The rule aims to clarify billing practices and ensure transparency in charges. Most of the rule takes effect on May 26, 2024, with certain sections pending approval. The rule stems from concerns over rising demurrage and detention charges and aims to improve clarity and fairness in billing practices.

To view the published Final Ruling, visit The Federal Register - Demurrage and Detention Billing Requirements