27 January 2023

CARRIERS REFUND OVER $700,000 IN D&D CHARGES IN THE US

On 25 January, the US Federal Maritime Commissions (FMC) announced that more than $700,000 in detention & demurrage charges have been refunded by ocean carriers since June 2022, when the OSRA entered into force.

The announcement was made during an FMC meeting to stake stock of the progress in the implementation of the OSRA of 2022. The FMC noted that they have received more than 200 filings, for which the process to charge complaints have been made easier thanks to the reform of the Shipping Act. Commission staff reported that the Charge Complaint process is proving successful at promoting informal settlements as well as waivers of D&D billings, leading to this high number.

Regarding the implementation of OSRA provisions, the FMC had received almost 30 comments in response to its Notice of Proposed Rulemaking (NPRM) on Unreasonable Refusal to Deal or Negotiate. Considering that a variety of comments raised additional and substantive questions on the effective implementation of the measure, the FMC will soon reopen a consultation on this matter, with updated proposed rules. In parallel, the FMC had received over 180 comments on its proposed rulemaking on D&D billing requirements. Finally, the Commission staff is currently working on a draft proposed rule addressing Unfair or Unjustly Discriminatory Methods.

Source: FMC