FMC Will Issue Guidance on Demurrage and Detention

Last week the Federal Maritime Commission (FMC) voted to move forward with two demurrage and detention related proposals from Commissioner Rebecca Dye. The proposals are part of Fact Finding 29, which was established in March 2020 to identify operational solutions to cargo delivery system challenges stemming from COVID-19.

The first initiative will involve issuing a “policy statement” on issues affecting the ability of truckers, shippers, and others to obtain reparations for violations of the Shipping Act, including those related to demurrage and detention. The 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.

The second initiative will commence an Advance Notice of Proposed Rulemaking to solicit public comment on two questions: whether the FMC should require carriers and marine terminal operators (MTOs) to provide certain minimum information on or with demurrage and detention invoices and whether the Commission should require carriers and MTOs to adhere to certain practices regarding the timing of demurrage and detention invoices.

In the  Fact Finding 29 document FMC references the Surface Transportation Board’s final rule (EP 759) requiring Class 1 rail carriers to include “certain minimum information on or with demurrage invoices and provide machine-readable access to the minimum information,” and recommended that the “Commission issue an Advanced Notice of Proposed Rulemaking to assess whether a similar rule is appropriate in the ocean shipping context...”

To become an IWLA member visit, http://31y.93c.myftpupload.com/become-an-iwla-member/