The Federal Maritime Commission this week extended the public comment deadline for its pre-rule on new demurrage and detention billing requirements (see 2202070026 and 2202140002) by 30 days. Comments were originally due March 17, but industry will now have until April 16 to submit feedback. More than 30 trade groups had asked FMC earlier this month to extend the deadline (see 2203070006).
More than 30 trade groups asked the Federal Maritime Commission to extend the public comment deadline as it considers new demurrage and detention billing requirements (see 2202070026 and 2202140002). A March 3 letter to the FMC -- signed by the National Customs Brokers & Forwarders Association of America, the Agriculture Transportation Coalition, the Consumer Technology Association and others -- requests a 30-day extension to the March 17 deadline.
The Federal Maritime Commission is planning to issue an advance notice of proposed rulemaking on container return and "earliest return date" practices by carriers, Commissioner Rebecca Dye told the Senate Commerce Committee. She also said there will be an advance notice of proposed rulemaking on detention and demurrage billing practices.
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Federal Maritime Commissioner Carl Bentzel says that audits have already led to investigations at the FMC, but that the agency is underpowered, with about 115 employees and just six investigators. He said there have been billions of dollars worth of detention and demurrage charges, and that the FMC will be issuing a notice of proposed rulemaking to create further guidance about proper detention and demurrage charges.
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The Federal Maritime Commission is officially seeking feedback on the possibility of new demurrage and detention billing requirements, which could require carriers and terminal operators to include “certain minimum information” with their billings and issue those billings within a certain time frame. The pre-rule, previewed by the commission earlier this month (see 2202070026), is part of a larger FMC effort to address fees and other problems in the international ocean freight delivery system that have been exacerbated by the COVID-19 pandemic (see 2011200024 and 2107290021). Comments on the rule, released Feb. 14, are due March 17.
The National Customs Brokers & Forwarders Association of America is telling Congress that some of the language about Non-Vessel Operating Common Carriers (or NVOCCs) and "Ocean Transport Intermediaries" in the Ocean Shipping Act does not make sense, because these intermediaries do not control cargo placement aboard a vessel, and most of the time, they do not set detention and demurrage charges.
The Federal Maritime Commission plans to request comments on the possibility of new demurrage and detention billing requirements, which would seek to address unfair charges and billing practices faced by shippers. In a pre-rule set to be published "soon," the FMC will request feedback on whether it should require carriers and terminal operators to include “certain minimum information” with their billings and whether they should be issued to shippers within a certain time frame.
Senators introduced a companion version of the House’s Ocean Shipping Reform Act, which would look to hold ocean carriers accountable for declining exports and other unfair shipping practices. The bipartisan bill -- introduced Feb. 3 by Sens. John Thune, R-S.D., and Amy Klobuchar, D-Minn. -- would also require carriers to submit quarterly reports on total import and export tonnage per vessel and grant the Federal Maritime Commission new investigative and enforcement authorities. The House passed its version in December (see 2112080075).