On February 23, 2024, the FMC issued its Final Rule on Detention and Demurrage Billing Practices, as required by Congress under the Ocean Shipping Reform Act of 2022. The rule went into
On February 23, 2024, the FMC issued its Final Rule on Detention and Demurrage Billing Practices, as required by Congress under the Ocean Shipping Reform Act of 2022. The rule went into effect on May 28, 2024. After the Final Rule was issued, the World Shipping Council, a trade association for vessel-operating common carriers organized under an FMC-filed agreement, appealed the Rule to the U.S. Court of Appeals for the D.C. Circuit, seeking to have it overturned.
On September 23, 2025, the court issued its decision in that case, setting aside just one section of the Rule – 46 C.F.R. 541.4 – which had specified who a demurrage and detention invoice may be sent to. That section of the Rule had limited invoicing to either: (i) the person for whose account the billing party provided ocean transportation or storage of cargo and who contracted with the billing party for the ocean transportation or storage of cargo, or (ii) the consignee.
It is important for the shipping public to be aware that apart from section 541.4, the rest of the Rule remains in effect and is not impacted by the court’s decision. In other words, all of the provisions of 46
Content Original Link:
" target="_blank">
