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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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On February 4, the Federal Maritime Commission (FMC) approved an Advanced Notice of Proposed Rulemaking (ANPRM) seeking comments on whether it should propose a new rule governing demurrage and detention billing practices related to ocean transportation container shipments. The FMC noted that demurrage and detention charges have been increasing substantially and it is responding to shippers’ complaints that invoices for such charges lack sufficient clarity to enable the recipient to understand and verify the charges. Comments are due on March 17.

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The ANPRM follows Commissioner Rebecca F. Dye’s recommendations in the FMC’s Fact-Finding Investigation No. 29 that the FMC consider whether it should require common carriers and marine terminal operators (MTOs) to include certain minimum information on or with demurrage and detention invoices and adhere to certain billing practices regarding the timing for issuing invoices. The ANPRM broadly defines the terms “demurrage and detention” to include any charges assessed by common carriers and MTOs related to the use of marine terminal space or shipping containers, respectively.

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The ANPRM includes questions for interested parties to address in their comments, including, for example:

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Parties using ocean transportation services who are subject to demurrage and detention charges should consider submitting comments to the FMC. Once the FMC evaluates the comments it receives on the ANPRM, it will decide whether to propose specific rules establishing billing requirements for demurrage and detention.

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Karyn A. Booth 202.263.4108 <a href="mailto:Karyn.Booth@ThompsonHine.com">Karyn.Booth@ThompsonHine.com</a>

Jason D. Tutrone 202.263.4143 <a href="mailto:Jason.Tutrone@ThompsonHine.com">Jason.Tutrone@ThompsonHine.com</a>

Kerem Bilge 202.263.4104 <a href="mailto:Kerem.Bilge@ThompsonHine.com">Kerem.Bilge@ThompsonHine.com</a>

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel. This document may be considered attorney advertising in some jurisdictions.

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FMC Seeks Comments on Establishing Demurrage and Detention Charge Billing Requirements

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