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Detention and Demurrage at US Ports: FMC Makes Recommendations

  • 1.  Detention and Demurrage at US Ports: FMC Makes Recommendations

    Posted 12-14-2018 14:14
    Detention and Demurrage at US Ports: FMC Makes Recommendations

    US Federal Maritime Commission (FMC) Issues Final Detention and Demurrage Report

    Stakeholder Groups to Help Finalize Key Areas

    Last Friday, the FMC approved Commissioner Dye's final report and recommendations on the long-standing Detention and Demurrage Petition.

    This final report essentially recognizes that a central issue is standardization (or the lack thereof) – and that each Marine Terminal Operator, port authority and carrier operated in similar, but slightly different manners.

    The FMC will be establishing industry and government stakeholder groups to review several issues, with a key goal of providing uniform language, and providing recommendations for adoption by the FMC. Recommendations would then need to be placed into the rule-making process at the agency, before becoming binding and final in nature. To be clear, this is the beginning of a very long process.

    Key areas to be addressed by the stakeholder groups:

    • Development of transparent and standardized language for demurrage and detention practices.
    • Clear, simplified, and accessible demurrage and detention billing practices and dispute resolution processes.
    • Explicit guidance regarding the types of evidence relevant to resolving demurrage and detention disputes.
    • Consistent notice to cargo interests of container availability.

    While the report and its recommendations may provide future cost savings and reduce delays, the more immediate financial relief desired from the Commission is absent from the final report.

    Looking ahead, IAM intends to join as many of the groups that will be formed in order to advocate for the interests of the global moving and mobility industry and its clients.

    Brian Limperopulos
    International Association of Movers