The Federal Maritime Commission issued its long-awaited final rule for new demurrage and detention billing requirements, describing the information carriers and marine terminal operators must include in their invoices, clarifying which parties can be billed and under what time frames, outlining the processes for disputing charges, and more.
The Federal Maritime Commission issued its final rule for new demurrage and detention billing requirements, describing the information carriers and marine terminal operators must include in their invoices, clarifying which parties can be billed and under what time frames, outlining the processes for disputing charges, and more.
Ocean carrier Evergreen Shipping Line "systematically" failed to meet its service requirements, pressured its customers to pay "extracontractual prices and surcharges" and charged unfair detention and demurrage, Bed Bath & Beyond said in a Feb. 21 complaint with the Federal Maritime Commission. The former big box retailer specifically accused the carrier of failing to meet minimum quantity commitments as part of a contract and said it took space reserved for Bed Bath & Beyond and instead allocated it to "higher-priced cargo from other shippers."
Maersk violated the Shipping Act by failing to keep its "automated tariff system" open for public inspection, shipper OL USA said in a complaint filed with the Federal Maritime Commission on Feb. 14. The shipper accused Maersk of being "deceptive" and its tariff platform of lacking "functionality," adding that it was "unable to verify Maersk’s representations regarding the substance of its tariffs."
Two Supply Source subsidiaries filed another five complaints at the Federal Maritime Commission Feb. 14 against multiple carriers, accusing them of violating the Shipping Act and charging unfair detention and demurrage from 2021 to 2022, leading to over $2.1 million in financial damages. The companies include COSCO Shipping Lines, Lihua Logistics Company Limited, CMA CGM, Overseas Container Line Limited, and Yang Ming Marine Transport Corp.
Mediterranean Shipping Co. (MSC) violated the Shipping Act by assessing detention and demurrage for periods that were outside the shipper’s control, shippers told the Federal Maritime Commission. The complaint, filed Feb. 14 by Impact Products and Safety Zone, both subsidiaries of Supply Source, alleged that MSC refused to divert shipments to less crowded ports and failed to extend the number of free days afforded when ports were congested from 2021 to 2022, leading to over $200,000 in financial damages.
Visual Comfort & Co. (VCC) filed an amended complaint against COSCO Shipping Lines Co., the Federal Maritime Commission said in a Feb. 14 Federal Register notice. In the complaint, which was filed with the FMC Feb. 6, VCC said that from January 2021 to December 2022, COSCO didn't divert shipments to less crowded ports or extend the number of free days when "circumstances outside VCC's control" affected the shipment, leading to more than $1 million in damages.
Reps. Dusty Johnson, R-S.D., and John Garamendi, D-Calif., urged the Federal Maritime Commission on Jan. 26 to finalize its proposed rule on demurrage and detention billing requirements “as expeditiously as possible.”
Dependable Highway Express charged an importer detention and demurrage on behalf of Mediterranean Shipping Co. after the ocean carrier had waived the charge, importer ICL USA said in a complaint to the Federal Maritime Commission. DHE also assessed ICL a 10% surcharge on the fees, in violation of its contractual role as a trucker.
A Texas shipper accused major Chinese ocean carrier Cosco Shipping Lines of violating U.S. shipping regulations through unfair detention and demurrage charges, costing it nearly $2 million in damages. Visual Comfort & Co, a shipper of lighting products, said Cosco “refused” to extend free days for containers that couldn’t be returned to the port and declined to divert shipments to less crowded ports, allowing the carrier to charge “astronomical” D&D fees.