FMC Finalizes New Demurrage, Detention Billing Requirements

The Federal Maritime Commission issued its final rule for new demurrage and detention billing requirements, describing the information carriers and marine terminal operators must include in their invoices, clarifying which parties can be billed and under what time frames, outlining the processes for disputing charges, and more.

The rule, released Feb. 23 and effective May 28, says that invoices can be issued to only the consignee or “the person for whose account the billing party provided ocean transportation or storage” of the cargo and who contracted with the billing party for cargo transportation or storage. The rule will also require ocean carriers and MTOs to issue detention and demurrage invoices within 30 calendar days from when the charges were last incurred, while non-vessel-operating carriers need to issue those invoices within 30 days from the “issuance date” of the invoice they received. Billed parties will have 30 days to request a refund or waiver, and the billing party must try to resolve the issue within 30 days.

The FMC said it hopes the rule leads to “supply chain fluidity” by clarifying the responsibilities and requirements of each party when picking up or returning cargo and equipment. “Failing to include any of the required information in a detention or demurrage invoice eliminates any obligation of the billed party to pay the applicable charge,” the commission said. “The new rule will provide relief to parties who should never have received a bill for detention or demurrage.”