FMC tightens rules on charging container late fees

The Federal Maritime Commission has imposed new billing standards on ocean carriers and terminal operators in an effort to crack down on abusive container late fees.

The new requirements focus on demurrage — fees charged by carriers and container terminals when full containers have not been picked up by customers within a certain number of days — and detention, the fees charged to customers if they are late returning the empty container back to the terminal.

Starting May 26, container ship carriers and marine terminal operators will be required to issue detention and demurrage invoices within 30 calendar days from when charges were last incurred.

Shippers and other billed parties will have at least 30 calendar days to request that charges be refunded. Carriers and terminal operators must try to resolve the matter within 30 calendar days unless the parties agree to a longer timeframe.

The new rules also stipulate minimum data requirements for demurrage and detention invoices:

The invoice date

The invoice due date

The allowed free time in days

The start date of free time

The end date of free time

For imports, the container availability date

For exports, the earliest return date

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

“Failing to include any of the required information in a detention or demurrage invoice eliminates any obligation of the billed party to pay the applicable charge,” the rule states.

Source: freightwaves.com