Final ruling given on demurrage and detention charges

The US Federal Maritime Commission (FMC) has announced its final ruling on demurrage and detention billing. The regulation is based on proposals published in October last year, with changes, and will come into force on May 28, 2024.

The International Federation of Freight Forwarders (FIATA) said it welcomed FMC’s investigations into substantial increases in demurrage and detention practices and highlighting the need for clarity regarding the content of the increased charges.

FIATA said in a statement: ‘The FMC final rule on demurrage and detention billing practices sets forth comprehensive guidelines aimed at ensuring transparency and fairness in billing procedures and dispute resolution regarding demurrage and detention charges, in line with the inputs provided by FIATA in the course of the rulemaking process. Notable provisions within the document include the requirement for common carriers and marine terminal operators to add specific and identifiable information on their demurrage and detention invoices, facilitating clearer understanding for billed parties regarding the nature of charges incurred.’

It has released an FMC Final Rule on Demurrage and Detention Toolkit.

‘FIATA encourages its worldwide membership to embrace the FMC final rule as a benchmark for best practices, promoting greater certainty and a level playing field across the supply chain,’ said FIATA.

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