FMC Introduce New Rules For Detention & Demurrage

May 30, 2024

FMC Introduce New Rules For Detention & Demurrage

The US Federal Maritime Commission (FMC) have issued new rules for detention and demurrage (D&D), after the pursuit of over $67m in specified claims.

The new rules have come into effect this week and largely focus on invoicing administration rather than the amount of the charges. Changes include D&D invoices only being issued to either the consignee or the person for whose account was provided, invoices having to be issued within 30 days of the charges being incurred, and billed parties being able to make a fee mitigation, refund or waiver request within 30 days.

The FMC is the US federal agency that is responsible for regulating ocean freight movements in and out of the US, and have been mediating an estimated $67m in claims for unfair D&D charges during the post-pandemic congestion. Several carriers have been implicated in these claims, one of which is from South Korean electronics giant Samsung.

The new rulings do not seem to have tackled the enormous charges that can arise from delayed cargo, but according to the FMC “The new rule will provide relief to parties that should never have received a bill for detention or demurrage”.

 

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