FMC extends public comment deadline period on interpretive rule for detention and demurrage penalties at the ports

By Bruce Abbe, SSGA strategic advisor for trade and transportation

The U.S. Federal Maritime Commission (FMC) announced on Sept. 20 it’s extending the deadline for public comments to be submitted on its proposed interpretive rule on how detention and demurrage penalties are handled by ocean container lines and port terminals.

The deadline for comments to the FMC is now Thursday, Oct. 31. View the proposed interpretive rule and find instructions on how to submit comments here.

The extension was made after shipper groups, notably the Agriculture Transportation Coalition (of which the Specialty Soya and Grains Alliance is an active member), called for more time to hear from cargo shippers due to the importance of establishing fair and appropriate practices for handling these penalties. Shippers and truckers have complained in recent years about being assessed penalties for delays due to conditions over which they had no control. That led to an 18-month investigation by the FMC that heard from all parties that resulted in the proposed interpretive rule. Detention and demurrage penalties are intended to incentivize container flow at the ports.

Meanwhile, CMA-CGM, one of the largest ocean container carriers in the world, decided to drop a processing fee for handling demurrage and detention penalties last week, only two days after it announced the fee. The $50 processing fee, which would have gone into effect Oct. 15, drew swift condemnation from shippers. More information on both developments can be found at www.joc.com.