New FMC Requirements for Detention and Demurrage to Take Effect

Dear Valued Customers,

Effective May 28th, 2024, the Federal Maritime Commission’s final rules establishing new requirements for how steamship lines (VOCCs) and marine terminals (MTOs) must bill for demurrage and detention charges will become effective. The Commission hopes these new rules will provide relief to parties (such as trucking companies) who should never have received and be held responsible for a detention/demurrage bill. Key provisions of this rule are as follows:

• The Bill To Party for any Detention/ Demurrage charges incurred is the contractual party indicated on the Bill of Lading as either the Shipper or the Consignee, depending on whether the shipment is export or import.
• Detention and demurrage invoices must be issued within 30 calendar days from when charges were last incurred.
• If such invoices are issued after the 30-calendar day deadline, the Billed To Party is not required to pay the detention/demurrage charges.

It is KWE’s policy to strictly pass through Detention/Demurrage charges we receive from VOCCs/MTOs to our valued customers. While we may forward or delegate a Detention/Demurrage invoice to a third party (such as a Consignee’s broker), only the contractual party indicated on the Bill of Lading can and will be listed as the payer on any Detention/Demurrage invoice as well as the sole party responsible for detention/demurrage payment.

Please rest assured that KWE is committed:

• to issue our Detention/Demurrage invoice in a timely manner, within the Commission’s prescribed 30 days [from the issuance date of the Detention/Demurrage invoice that KWE has received];
• to attempt to resolve any disputes within 30 calendar days, unless both parties agree to a longer time frame.

Thus, we respectfully ask our Valued Customers to please kindly address any inaccuracies promptly to ensure the swift resolution of any disputes.

Should you have any questions, please kindly contact your local KWE representative office.

Sincerely,

KWE Sea Freight Headquarters

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