ProTrans’ Post

The #FMC has taken significant steps to address long-standing issues surrounding detention and demurrage billing practices. Learn more about measures aimed to enhance transparency in #maritimelogistics. https://lnkd.in/eSvS-M6q #cargoshipping #globallogistics #supplychainmanagement

https://lnkd.in/g3PapWMg Critical new legislation for an Importer/ Exporter to understand, implement, and create a best practice SO&P to mitigate improperly charged Detention/Demurrage. Millions if not Billions of unplanned charges to companies in error or not challenged by the BCO due to vague regulations. This legislation addresses the following subject matters: On February 15, 2022, the Commission issued an ANPRM to request industry views on potential demurrage and detention billing requirements.[7] Specifically, the Commission requested comments on: Whether a proposed regulation on demurrage and detention billing practices should apply to non-vessel-operating common carriers (NVOCCs) as well as vessel-operating common carriers (VOCCs); Whether the regulations should differ based on whether the billing party is an NVOCC or a VOCC; [8] Whether the proposed regulations on demurrage and detention billings should apply to marine terminal operators (MTOs); [9] What information should be required in demurrage and detention invoices; [10] Whether bills should include information on how the billing party calculated demurrage and detention charges.[11] For example, the Commission requested comments on whether it should require the billing party to include the following information: ○ Identifying clear and concise container availability dates in addition to vessel arrival dates for import shipments; and, #DetentionDemurrage #Globalsupplychain #GlobalTrade #Oceanfreight

Attention Shippers and Importers: Updates to Demurrage and Detention Billing! This week the recent changes to the requirements for demurrage and detention invoices issued under the Ocean Shipping Reform Act of 2022 (OSRA) went into effect. Here's a quick summary of the key points: 💻Who can be billed: Invoices can only be issued to the party who contracted the ocean transportation or storage, or the consignee (receiver) of the goods. 💻Properly issued invoices: Invoices must be clear, detailed, and contain specific information outlined in the regulations. 💻Requesting fee adjustments: You have the right to request mitigation, refund, or waiver of demurrage or detention fees if you believe they are inaccurate. For a full breakdown of the regulations, please refer to the Federal Maritime Commission (FMC) Final Rule: https://lnkd.in/gmNKuRR7 We at TLR are committed to keeping you informed and ensuring smooth operation within the new regulations. If you have any questions about demurrage or detention charges on your shipments, please don't hesitate to contact us! bd@shiptlr.com #OSRA #Demurrage #Detention #Shipping #FreightForwarding

On February 23, 2024, the FMC published its Final Rule on Detention and Demurrage Billing Practices. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://lnkd.in/eAVaZZvq According to the FMC announcement, the rule "establishes new requirements for how common carriers and marine terminal operators (MTOs) must bill for demurrage and detention charges, providing clarity on who can be billed, within what timeframe, and the process for disputing bills." For more about this long-awaited publication, read: https://lnkd.in/eyKjg423

The Federal Maritime Commission (FMC) has announced final rule on demurrage and detention (D&D) billing, mandating specific information on invoices, outlining billing practices, and establishing timeframes for dispute resolution. The final rule takes effect on May 28, 2024, with certain amendments delayed. #FMC #DD #Demurrage #OceanFreight #SupplyChain

The Federal Maritime Commission (FMC) published a final rule addressing obligations for demurrage and detention billing charged by marine terminal operators (MTOs) and common carriers...READ MORE https://lnkd.in/eZgK2BWt #fmc #detention #demurrage

FMC Publishes Final Rule on Detention and Demurrage Billing Practices A Final Rule issued today by the Federal Maritime Commission establishes new requirements for how common carriers and marine terminal operators (MTOs) must bill for demurrage and detention charges, providing clarity on who can be billed, within what timeframe, and the process for disputing bills. A key provision of this rule determines that demurrage or detention invoices can only be issued to either: (1) the person for whose account the billing party provide ocean transportation or storage of cargo and who contracted with the billing party for the ocean transportation or storage of cargo; or (2) the “consignee,” defined as “the ultimate recipient of the cargo; the person to whom final delivery of the cargo is to be made”. Demurrage and detention bills cannot be issued to multiple parties simultaneously. Read more information here: https://lnkd.in/eNfKpiVJ

In accordance with the Ocean Shipping Reform Act of 2022, the Federal Maritime Commission is issuing regulations governing demurrage and detention billing requirements. This final rule requires common carriers and marine terminal operators to include specific minimum information on demurrage and detention invoices, outlines certain detention and demurrage billing practices, such as determination of which parties may appropriately be billed for demurrage or detention charges, and sets timeframes for issuing invoices, disputing charges with the billing party, and resolving such disputes. It adopts with changes the notice of proposed rulemaking published on October 14, 2022. Substantive changes allow consignees to be billed and clarify the timeframe for non-vessel-operating common carriers passing through demurrage and detention charges to issue their own invoices. Non-substantive changes improve clarity and remove drafting errors.

Demurrage and Detention are two words that have been and continue to be the bane of the existence of many BCOs, creating a big rift between carriers, BCOs and forwarders.. While demurrage and detention are a big issue for several customers globally, these issues are most vocal in the USA.. While this could be because the USA is one of the most expensive countries for demurrage and detention, with operational practices more complicated than other countries, it is also due to the actions taken by the Federal Maritime Commission (FMC) in this regard..

Today, a final rule from the FMC (Federal Maritime Commission) adds clarity to Detention & Demurrage billing and is designed to promote #supplychain fluidity 🚢 🌊📦 The rule ensures a clear connection between the failure to pick-up cargo or return equipment in a timely manner and the appropriate fee. The rule makes certain that billed parties understand the demurrage or detention invoices they receive by requiring certain identifiable information be included by the billing party on the invoice. Failing to include any of the required information in a detention or demurrage invoice eliminates any obligation of the billed party to pay the applicable charge. Of course, if an invoice does comply, a charged party does have an obligation to pay charges billed. The new rule will provide relief to parties who should never have received a bill for detention or demurrage. #humanstandard #logistics #forwarding