FMC ISSUES DEMURRAGE AND DETENTION GUIDELINES

S.W. Jojhn Lee

The Commission may also consider in assessing the reasonableness of detention and demurrage practices factors related to:
•     Content and clarity of carrier and marine terminal operator policies addressing detention and demurrage.
•     Clarity of carrier and marine terminal operator detention and demurrage terminology.
The final rule adds two provisions that were not included in the proposed rule published in September 2019. The first clarifies that the guidance in the rule is applicable in the context of government inspections. The second clarifies that the rule does not preclude the Commission from considering additional factors, arguments, and evidence outside those specifically listed.
This final interpretive rule is the culmination of a process initiated by a petition (Petition P4-16) submitted to the Commission in December 2016 by a coalition of shipper groups. In the intervening period, the FMC held public hearings in January 2018; initiated a Fact Finding Investigation in March 2018 led by Commissioner Rebecca Dye (Fact Finding 28); and issued a proposed rule in September 2019.