COVID-19: Updates on the FMC's Detention and Demurrage Final Rule

Source: K&L Gates

Original Date Posted: 5/11/2020

The Federal Maritime Commission (FMC or Commission) recently announced its adoption of a final interpretive rule to provide the maritime community guidance on the “reasonableness” of detention and demurrage charges. The rule addresses shipper complaints of excessive and unwarranted charges by providing that charges may well be found unreasonable unless they further the prompt movement of cargo (“freight fluidity”), thus shifting the burden of delays that are beyond the control either party towards the carrier and away from the shipper. The importance of the guidance to all participants in the shipping supply chain is heightened as COVID-19 affects normal maritime movements.

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