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Requirements for Demurrage and Detention Billing New Regulations Effective May 28, 2024

Dear Sir or Madam,

The United States Federal Maritime Commission (FMC) has issued its final regulation regarding the billing of demurrage and detention charges. This regulation governs billing practices and will come into effect on May 28, 2024.

The FMC Final Rule establishes comprehensive guidelines to ensure transparency and fairness. It mandates freight forwarders and terminal operators to provide specific minimum information, outlines billing practices, and sets deadlines for billing, challenging fees, and resolving disputes. The regulation amendments allow for invoicing recipients and clarify the timeframe for non-vessel-operating common carriers (NVOCCs) to pass on demurrage and detention costs to issue their own bills.

Currently, the regulation applies only to costs incurred within the territory of the United States. According to the International Federation of Freight Forwarders (FIATA), the goal is to expand this regulation globally through local governments. As the effective date is imminent, we recommend SPEDLOGSWISS members, acting as NVOCCs, carriers, or on behalf of carriers, to prepare for compliance with the regulations.

The complete Final Rule has been published in the Federal Register and can be viewed here.

Source: Spedlogswiss

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