The Federal Maritime Commission (FMC) has issued a final ruling aimed at simplifying international container billing practices, which has been welcomed by truckers who often bear the burden of ocean carrier detention and demurrage fees. Under the ruling, ocean carriers must now submit invoices for these charges within 30 days instead of the previous 60, allowing for more timely and accurate billing.
Detention charges, applied when containers remain on docks beyond allocated free time, and demurrage charges, incurred when containers are not picked up after free days lapse, have been a significant issue for truckers. The new ruling aims to streamline accountability by recognizing the distinct responsibilities of motor carriers within the supply chain and redirecting these charges accordingly.
Trucking associations such as the Maryland Motor Truck Association and the American Trucking Associations’ Intermodal Motor Carriers Conference have advocated for this clarification, emphasizing the impact of such charges on trucking companies, shippers, and ultimately, consumers. During the pandemic-induced supply chain disruptions, these charges led to significant cost increases, which were eventually passed on to consumers.
The ruling will particularly affect drayage companies operating at ports and trucking companies transporting international containers from inland rail facilities. It aims to foster greater collaboration between contracting parties, with the expectation that accurate billing and dispute resolution will be incentivized.
Matt Schrap, CEO of the Harbor Trucking Association, highlighted the long-standing issues with billing practices, noting the substantial financial burden these charges have imposed on trucking companies. He emphasized the importance of accountability and responsibility in enhancing efficiency within the supply chain.
Despite the changes, motor carriers will continue to collaborate with their shipper partners to ensure the accuracy of bills and maintain effective operations within the supply chain. The ruling represents a significant step toward addressing longstanding challenges in container billing practices, ultimately benefiting stakeholders across the supply chain.
Inspired by: https://www.ttnews.com/articles/truckers-fmc-containers-fees