Heavy! FMC new regulations: In this case, the cargo owner and freight forwarding company can refuse to pay the fee-United Petroleum Equipment Co., Ltd

Heavy! FMC new regulations: In this case, the cargo owner and freight forwarding company can refuse to pay the fee

time 2024-02-28 08:56:03 source：

Recently, the U.S. Federal Maritime Commission (FMC) ’s Final Rule on container demurrage and demurrage (D&D) has finally been released and will be implemented from May 26!

FMC related announcements

Demurrage refers to the fee charged by the carrier and terminal operator when the consignee fails to pick up the goods within a certain period of time; demurrage refers to the fee charged by the consignee for failing to transport the empty container back to the terminal on time. cost of.

According to FMC’s new regulations, D&D invoices can be issued to the shipper or consignee, but not to multiple parties at the same time. At the same time, carriers and terminal operators must issue D&D invoices within 30 days after the last charge. The charged party has at least 30 days to propose fee reductions or request a refund. Once a disagreement arises, both parties must resolve the issue within 30 days, unless both parties agree to extend the communication time.

It is worth noting that the new regulations issued this time also require the invoices for demurrage and detention fees issued by shipping companies to contain the following 8 key information:

1. The invoice date

2. The invoice due date

3. The allowed free time in days (free time in days)

4. The start date of free time (free period start date)

5. The end date of free time (the end date of the free period)

6. For imports, the container availability date (free use date of imported containers)

7. For exports, the earliest return date (the earliest return date of export containers)

8. The specific date(s) for which demurrage and/or detention were charged (the specific date(s) for which demurrage and/or detention were charged)

The rule emphasizes: “If the shipping company fails to list the above necessary information in detail in the demurrage or demurrage invoice, the cargo owner and freight forwarding company as the invoiced party have no obligation to pay the fee.”

In other words, if the above eight key information stipulated by FMC are not provided in the bill issued by the shipping company, the cargo owner and freight forwarding company can regard it as a violation or unreasonable charge and directly refuse to pay.

The final D&D regulations issued by the FMC are authorized by the Maritime Transportation Reform Act of 2022. The introduction of this bill is the first major reform of U.S. container trade regulations in 24 years, and it also means that carriers will face stricter supervision in the United States.

According to relevant data, after the outbreak of the new crown epidemic, the volume of imported goods in the United States surged, resulting in a significant increase in D&D. According to FMC statistics, from 2020 to 2022, the nine largest carriers serving the U.S. container shipping market collected a total of approximately US$8.9 billion in D&D.

Previously, some trucking companies and truck drivers often received D&D bills. Although they did not have a direct contractual relationship with the carrier and terminal operator, they had to pay this controversial fee in order to continue serving customers. This time the FMC clarified that trucking companies do not need to pay relevant fees , and the American Trucking Associations welcomed this.

FMC announcement:

https://public-inspection.federalregister.gov/2024-02926.pdf

Federal regulations:

https://www.law.cornell.edu/uscode/text/46/41104