Federal Maritime Commission Issues Final Demurrage and Detention Rule

March 2024
Region: Global

On February 23, 2024 the Federal Maritime Commission (FMC) announced the publication of its final Demurrage and Detention Billing Requirements rule (Final Rule).

This rule represents yet another of the ongoing impacts of the Ocean Shipping Reform Act of 2022 (OSRA 22), and its goal of promoting supply chain fluidity. The Final Rule applies to common carriers, which includes both vessel operating common carriers (VOCCs) and non-vessel-operating common carriers (NVOCCs), as well as marine terminal operators (MTOs).

The Final Rule addresses demurrage and detention (D&D) billing practices and includes provisions governing: (1) specific minimum information on D&D invoices, (2) which parties may appropriately be billed for D&D charges, and (3) deadlines for issuing invoices, disputing charges and resolving disputes. The Final Rules goes into effect on May 28, 2024 except for certain invoicing requirements set forth in Section 541.63.

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