FMC releases final detention and demurrage billing practices rule

Chamber of Shipping > Blog > News > US > FMC releases final detention and demurrage billing practices rule

The Federal Maritime Commission has issued a new rule for billing demurrage and detention charges by carriers and marine terminal operators. This rule clarifies billing processes, specifying that only parties who contracted for services or the consignee can be billed. Invoices must be issued within 30 days of incurring charges, and recipients have 30 days to dispute them. The regulation aims to enhance supply chain efficiency by ensuring charges are directly linked to service or equipment return delays. It mandates detailed invoice requirements and states that failure to meet these requirements invalidates the charge. Most of the rule will be effective from May 28, 2024, with specific sections pending further approval.

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