FMC Demurrage and Detention Billing Rule
The FMC Demurrage and Detention Billing Rule sets what ocean carriers and marine terminals must include in demurrage and detention invoices, whom they may bill, and the deadlines for issuing and disputing those invoices.
What it requires
Effective May 28, 2024 under OSRA 2022, the rule lets billing parties invoice only the party that contracted for the ocean transportation or storage, or the consignee, not both for the same charges. Invoices must be issued within 30 calendar days of the last charge and contain required information, including container number, free time, applicable dates, rates and a dispute contact. Billed parties have at least 30 days to request mitigation, refunds or waivers, and billing parties must respond within 30 days. Late or incomplete invoices need not be paid.
Why it matters
The rule gives importers and their 3PLs a checklist for rejecting faulty demurrage and detention bills. Late invoices or missing details mean the charge does not have to be paid, so tracking invoice dates saves money. For example, if a carrier sends a detention invoice 45 days after a container's last charge accrued, the importer can refuse payment because the 30-day deadline was missed. Fulfillment providers that manage drayage for clients should log container pickup and return dates and keep invoice records to support disputes.
Related laws
Sources
Not legal advice.