05 Apr Demurrage and Detention Fees Under FMC Review
The US Federal Maritime Commission (FMC) is requesting terminal operators and the 11 largest container lines calling the US to confirm whether they are charging shippers demurrage and detention (D&D) fees when port facilities are closed.
This follows a precedent for “unjust and unreasonable” fees, which was set in December 2022. In this case the FMC determined that a refund of $510 be issued by Evergreen Marine to a trucking company for detention fees incurred for a container when the Port of Savannah was closed over Memorial Day weekend in 2020.
However, whilst early indications make it appear likely that the FMC will mandate that parties cease charging D&D fees when a terminal or storage facility where containers are picked up or dropped off is inaccessible to shippers or their landside service representatives, the official decision and announcement is yet to be made, and is expected any time up to mid-June.
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Rachael Budd & The Transolve Global Team