FMC Adopts Final Rule for Detention and Demurrage Charges

The Federal Maritime Commission will adopt a final rule to give industry guidance on how it assesses the “reasonableness” of detention and demurrage charges, the agency said. The rule, which was proposed in September and has garnered new attention due to charges caused by COVID-19-related shipping delays, is expected to give industry clarity on how FMC will consider whether detention and demurrage policies incentivize the movement of cargo or whether they are unjustified. The rule will become effective upon its publication in the Federal Register.

Two new provisions are included in the final rule. "The first clarifies that the guidance in the rule is applicable in the context of government inspections," the FMC said. "The second clarifies that the rule does not preclude the Commission from considering additional factors, arguments, and evidence outside those specifically listed."