Final Rule on Demurrage & Detention Cleared to Take Full Effect May 28

The final rule on Demurrage and Detention Billing Practices is clear to take full effect on May 28, 2024, following recent actions by the Office of the Management and Budget (OMB) and the Federal Maritime Commission (FMC).

The FMC issued its final rule on Detention and Demurrage Billing Practices on February 23, 2024, and gave notice of the May effective date except for the “Contents of Invoice” section 541.6. That provision of the rule contains an information collection under the Paperwork Reduction Act and required OMB review and approval. That process has been completed and the announcement of this collection’s approval was published in the Federal Register May 14.

Invoices issued for demurrage or detention charges from May 28, 2024, must be fully compliant with all requirements of the FMC’s final rule. Entities issuing non-compliant invoices or to the wrong parties are subject to enforcement action, the commission said.

Billing the proper party is an important part of the final rule, the commission added. Last week, the FMC issued a Correction via the Federal Register to the previously published final rule. The clarification more clearly explained the rule’s application to carrier-trucker relationships and reiterated who the rule allows demurrage and detention bills to be sent to.

Parties receiving non-compliant invoices have several options for recourse. Parties may always seek resolution directly with the carrier issuing the invoice. The commission has several options to assist parties receiving non-compliant invoices receive redress, including filing a Charge Complaint, requesting informal assistance from the FMC’s Office of Consumer Affairs and Dispute Resolution Services, or filing an action before the commission’s Administrative Law Judges.