FMC Releases Interim Report on Demurrage and Detention Fees
The Federal Maritime Commission issued its first report on the detention and demurrage practices for vessel operating common carriers and marine terminal operators, the agency said in a news release. The full interim report includes a number of observations about the processes involved, but notes further discussion with industry leaders is planned. Regarding one question as to whether VOCCs or MTOs charge demurrage during government inspections, little data was available, the FMC said. "As for mitigating demurrage and detention due to customs holds, some VOCCs indicated that they do not charge demurrage for the time during which a container was taken off-terminal for an inspection," the agency said.
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Among the remaining issues are differences in the use of the term "demurrage" by VOCCs and MTOs, it said. "Going forward, Commission staff will continue to mine the VOCC and MTO responses and, also, the shipper, consignee, drayage provider, and [Ocean Transportation Intermediary] submissions," the FMC said. The agency plans to release a final report by Dec. 2. "Throughout this process, my priority has been how ocean carrier and marine terminal demurrage and detention approaches can optimize, not diminish, the performance of the overall American international freight delivery system," said FMC Commissioner Rebecca Dye, who is the investigative officer for the agency's fact finding, which began in April (see 1804030030).