Friday, 14 December 2018 13:01

FMC approve recommendations on detention & demurrage

FMC


The Federal Maritime Commission voted at its meeting last week to take this action when it approved the recommendations of Commissioner Rebecca Dye as set forth in her final report of the Fact Finding 28 investigation. The investigation found that demurrage and detention charges can incentivize cargo to move expeditiously and that standardizing practices for when these fees are levied would improve velocity at ports and that focusing demurrage practices on notice of when cargo is actually available would likely eliminate many of the circumstances that lead to the imposition of demurrage fees. Toward that goal, the Commission will convene Innovation Teams that will address how to provide:

  • Transparent, standardized language for demurrage and detention practices
  • Clear, simplified, and accessible demurrage and detention billing practices and dispute resolution process
  • Explicit guidance regarding the types of evidence relevant to resolving demurrage and detention disputes
  • Consistent notice to cargo interests of container availability

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