FMC to Delete Demurrage, Detention Billing Rule Language Struck Down by Court
The Federal Maritime Commission is removing a portion of its final rule on demurrage and detention billing requirements (see 2402230049) after a federal court earlier this year said the language arbitrarily and capriciously exempted motor carriers from being assessed those demurrage and detention fees (see 2509230039 and 2509240068).
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The court struck down the portion of the rule in September, and the FMC said in a Federal Register notice released Dec. 23 and effective Dec. 29 that it’s officially deleting the language, which was contained in 46 CFR 541.4
“This rule is a necessary administrative step following the court's order setting aside 46 CFR 541.4,” the FMC said. “Per the court’s decision, section 541.4 has no legal effect.”
Although the court set aside that part of the rule, which limits which parties can be assessed demurrage and detention invoices, the FMC said the "other provisions of the rule remain in effect,” including regulations describing the information carriers and marine terminal operators must include in their invoices, clarifications about what time frames parties must be billed, the processes for disputing charges, and more.