Federal Maritime Commission Publishes Interpretive Rule on Demurrage and Detention

This article has been reprinted from USDA's April 30 Grain Transportation Report.

On April 28, the Federal Maritime Commission (FMC) published Docket No. 19-05, Interpretive Rule on Demurrage and Detention under the Shipping Act.

The interpretive rule provides guidance regarding what FMC “may consider in assessing whether a demurrage or detention practice is unjust or unreasonable.”

The rule followed years of complaints that unfair detention and demurrage practices by ocean carriers and terminal operators unfairly penalized U.S. importers, exporters, transportation intermediaries, and drayage truckers for circumstances outside their control.