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ARTICLE · 30 SEPTEMBER 2019

Federal Maritime Commission Issues Proposed Rule On Demurrage And Detention

Winston Taylor
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On September 17, 2019, the U.S. Federal Maritime Commission issued a Notice of Proposed Rule-Making and Request for Comments concerning a proposed interpretive rule on how the Commission

United StatesTransport
Allen Black
Allen Black

On September 17, 2019, the U.S. Federal Maritime Commission issued a Notice of Proposed Rule-Making and Request for Comments concerning a proposed interpretive rule on how the Commission will interpret the Shipping Act’s requirement that ocean transportation entities maintain “just and reasonable regulations and practices” in connection with demurrage and detention charges. Marine terminals and ocean carriers impose demurrage charges for delays in retrieving loaded cargo containers, and ocean carriers may impose detention charges for delays in returning the ocean shipping container back to the carrier. Incidents of port congestion, labor disputes, and severe weather can cause delays at marine terminals, leading to high demurrage and detention charges imposed on shippers and consignees.

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