Detention And Demurrage (D&D) Billing Lacks Clarity

Detention And Demurrage (D&D) Billing Lacks Clarity

Terminal operators are expressing concern that the decision due to be made in June by the Federal Maritime Commission (FMC) regarding detention and demurrage billing could hurt cargo flow through the USA.

With ocean liners already announcing they will cease charging detention and demurrage, terminal operators warn that a misinterpretation of the OSRA-22 will result in an unintended consequence of not incentivizing movement, and result in a D&D revenue shortfall as they cannot charge for containers occupying space.

Conversely, shippers disagree that there is no incentive to move cargo if gates are closed and are asking for a clear definition of “available cargo” associated with the final FMC rulemaking.

These various concerns are yet to be clarified as the FMC works towards their decision, and all stakeholders await further clarity. We will keep you updated on the latest with regards to the D&D decision as information becomes available.

If you have any further queries, please contact our helpful team.

Yours sincerely,
Rachael Budd & The Transolve Global Team

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