FMC enforces new guidelines on detention and demurrage

Posted on June 3, 2024   |  

The recent update from the US Federal Maritime Commission (FMC) regarding detention and demurrage (D&D) rules took effect yesterday, bringing in new rules for billing, timelines, and dispute resolution.

One significant change is that D&D invoices can now only be sent to the consignee, the party who arranged with the billing entity for ocean transportation or storage, or the accountable party.

The FMC stressed the importance of correctly billing the right party under the new rule.

Vessel-operating common carriers (VOCCs) and marine terminal operators (MTOs) must now issue D&D invoices within 30 days of charges occurring.

Non-Vessel Operating Common Carriers (NVOCCs) need to send invoices within 30 days of receipt.

Billed parties have at least 30 days to request fee adjustments, refunds, or waivers, with the billing entity required to try resolving the matter within the same timeframe unless both parties agree otherwise.

The updated rules also require invoices to include specific identifiable information about the billing entity to ensure clarity for recipients.

Failure to include the necessary information on invoices relieves the billed party from any obligation to pay the relevant charge.