FMC ANNOUNCES NEW GUIDANCE ON DEMURRAGE AND DETENTION FEES
On 15 September, the U.S Federal Maritime Commission (FMC) announced in a statement that it has voted to launch two demurrage-and-detention related initiatives in order to clarify conflicts related to delayed goods at US ports. These actions follow the signing of an executive order by US President Joe Biden ordering the FMC to take action against unreasonable fees charged by shipping companies for delays and bottlenecks at ports.
The first initiative is to issue a policy statement on issues that affect the ability of shippers, truckers, and others to obtain reparations for conduct that violates the Shipping Act, including conduct related to demurrage and detention. The policy statement will provide guidance on the scope of the prohibition against carrier retaliation, when attorney fees may be imposed on a non-prevailing party, and who may file a complaint with the FMC alleging unreasonable conduct.
Additionally, the FMC will issue an Advance Notice of Proposed Rulemaking (ANPRM) that will solicit public comments on two questions: first, whether the FMC should require ocean common carriers and marine terminal operators to include certain minimum information on or with demurrage and detention billings; and second, whether the FMC should require carriers and marine terminal operators to adhere to certain practices regarding the timing of demurrage and detention billings.
Source: FMC