Final Rule on Demurrage & Detention Cleared to Take Full Effect May 28

Recent actions taken by the Office of the Management and Budget (OMB) and the Federal Maritime Commission clear the way for the final rule on Demurrage and Detention Billing Practices to take full effect on May 28, 2024.

The Commission issued its final rule on Detention and Demurrage Billing Practices on February 23, 2024, and gave notice of the May effective date except for the “Contents of Invoice” section 541.6. That provision of the rule contains an information collection under the Paperwork Reduction Act and required OMB review and approval. That process has been completed and the announcement of this collection’s approval is being published in the Federal Register tomorrow.

Invoices issued for demurrage or detention charges from May 28, 2024, must be fully compliant with all requirements of the Commission’s final rule. Entities issuing non-compliant invoices or to the wrong parties are subject to enforcement action.

Billing the proper party is an important part of the final rule. Last week, the Commission issued a Correction via the Federal Register to the previously published final rule. The clarification more clearly explained the rule’s application to carrier-trucker relationships and reiterated who the rule allows demurrage and detention bills to be sent to.

Parties receiving non-compliant invoices have several options for recourse. Parties may always seek resolution directly with the carrier issuing the invoice. The Commission has several options to assist parties receiving non-compliant invoices receive redress, including filing a Charge Complaint, requesting informal assistance from the Commission’s Office of Consumer Affairs and Dispute Resolution Services, or filing an action before the Commission’s Administrative Law Judges.