FMC Demurrage and Detention Billing Rules: New vs. Previous

New regulations from the Federal Maritime Commission (FMC) aim to enhance transparency and fairness in demurrage and detention billing. These changes impact the issuance of invoices, designate the recipients, and address dispute resolution procedures.

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Below is breakdown of the key differences between the previous and new rules (effective May 28, 2024):

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Key changes:

Clearer Billing

Invoices must now be sent to the party with a contractual agreement with the carrier, eliminating confusion about who is responsible for payment.

Detailed Invoices

Invoices need to be more informative, including specifics like free time allowed for container pickup or return, exact start and end times for demurrage or detention charges, and any additional explanations justifying the fees.

Streamlined Dispute Resolution

A standardized 30-day window is established for the billed party to contest charges. The carrier then has another 30 days to address the issue, with the possibility of an extension if both parties agree.

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Learn more: https://www.fmc.gov/