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American shippers want FMC new demurrage rule published

AMERICAN shippers, freight forwarders and harbour truckers want the US Federal Maritime Commission to quickly publish its interpretive rule on what constitutes the fair assessment of detention and demurrage charges by ocean carriers and marine terminal operators

19 March 2020 - 19:00

AMERICAN shippers, freight forwarders and harbour truckers want the US Federal Maritime Commission to quickly publish its interpretive rule on what constitutes the fair assessment of detention and demurrage charges by ocean carriers and marine terminal operators.

'With the coronavirus, there is concern about fees being assessed when equipment issues are beyond the control of the shipper or motor carrier,' 67 trade associations told the Federal Maritime Commission.



In a March 16 letter to FMC chairman Michael Khouri, the associations said shippers are 'grappling with trade barriers and economic pressures, now exacerbated by the coronavirus crisis.



'The imposition of detention and demurrage charges when equipment cannot be returned or containers cannot be picked up during the free period, render US exports less competitive in the global markets, and imports more costly to US consumers and manufacturers.'.



The FMC published its proposed interpretive rule in September 2019 and received mostly positive comments from shippers.



Through the proposed rule, the FMC provides guidance under the Shipping Act on what it will consider to be fair and reasonable practices for ocean carriers and marine terminals to assess demurrage and detention fees on shippers.


WORLD SHIPPING

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