US FMC pushes ahead with two detention and demurrage initiatives

Detention and demurrage charges in the current environment of delays and congestion for container shipping have become a point of contention with shippers.

The initiatives proposed by Commissioner Rebecca Dye as part of the recent Fact Finding No. 49 and require formal approval from the commission.

“The first initiative is to issue a policy statement on issues that affect the ability of shippers, truckers, and others to obtain reparations for conduct that violates the Shipping Act, including conduct related to demurrage and detention. The policy 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 Commission alleging unreasonable conduct,” FMC said.

On the second initiative the Commission will shortly seek public comment there should be minimum information requirements on detention and demurrage billings, and whether lines and terminals need to adhere to certain timings on the billings.