As you likely know, effective May 28, 2024, there are new rules for the billing of detention and demurrage penalty charges.

The long-standing practice of billing these charges to the motor carrier has changed to instead billing the cargo owner or contract holder and requires the ocean carriers and terminal operators to provide all the necessary details to review and approve/ dispute the charges.

The Federal Maritime Commission (FMC) as part the Ocean Shipping Reform Act (OSRA) was tasked with reviewing and modernizing the detention and demurrage billing process in order to ensure a more efficient supply chain.

The video above is a podcast featuring Daniel Maffei, Chairman, FMC, explaining the new rule and the rationale behind it.

In addition to the requirements in this FMC ruling, California has additional protections for importers and exporters. California law AB2406 prohibits the assessment of detention or demurrage penalty charges on days when the terminal is not open, including weekends, holidays and unexpected closures.

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