Sec. 180009. Detention and demurrage

743 words·~3 min read·/bill/117/hr/4521/eh/section-180009

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 41104 of title 46, United States Code, is further amended by adding at the end the following: Failure of a common carrier to include a certification under section 41102(e) alongside any demurrage or detention charge shall eliminate any obligation of the charged party to pay the applicable charge. Notwithstanding any other provision of law and not later than 30 days of the date of enactment of this subsection, a common carrier or marine terminal operator, shall— act in a manner consistent with any rules or regulations concerning demurrage or detention issued by the Commission; maintain all records supporting the assessment of any demurrage or detention charges for a period of 5 years and provide such records to the invoiced party or to the Commission on request; and bear the burden of establishing the reasonableness of any demurrage or detention charges which are the subject of any complaint proceeding challenging a common carrier or marine terminal operator demurrage or detention charges as unjust and unreasonable.

In the event of a finding that the certification under section 41102(e) was inaccurate, or false after submission under section 41301, penalties under section 41107 shall be applied if the Commission determines, in a separate enforcement proceeding, such certification was inaccurate or false. . Not later than 120 days after the date of enactment of this Act, the Federal Maritime Commission shall initiate a rulemaking proceeding to establish rules prohibiting common carriers and marine terminal operators from adopting and applying unjust and unreasonable demurrage and detention rules and practices.

The rulemaking under paragraph

(1)shall address the issues identified in the final rule published on May 18, 2020, titled Interpretive Rule on Demurrage and Detention Under the Shipping Act (85 Fed. Reg. 29638), including the following: Establishing clear and uniform definitions for demurrage, detention, cargo availability for retrieval and associated free time, and other terminology used in the rule. The definition for cargo availability for retrieval shall account for government inspections. Establishing that demurrage and detention rules are not independent revenue sources but incentivize efficiencies in the ocean transportation network, including the retrieval of cargo and return of equipment. Prohibiting the consumption of free time or collection of demurrage and detention charges when obstacles to the cargo retrieval or return of equipment are within the scope of responsibility of the carrier or their agent and beyond the control of the invoiced or contracting party. Prohibiting the commencement or continuation of free time unless cargo is available for retrieval and timely notice of cargo availability has been provided. Prohibiting the consumption of free time or collection of demurrage charges when marine terminal appointments are not available during the free time period. Prohibiting the consumption of free time or collection of detention charges on containers when the marine terminal required for return is not open or available. Requiring common carriers to provide timely notice of— cargo availability after vessel discharge; container return locations; and advance notice for container early return dates. Establishing minimum billing requirements, including timeliness and supporting information that shall be included in or with invoices for demurrage and detention charges that will allow the invoiced party to validate the charges. Requiring common carriers and marine terminal operators to establish reasonable dispute resolution policies and practices. Establishing the responsibilities of shippers, receivers, and draymen with respect to cargo retrieval and equipment return. Clarifying rules for the invoicing of parties other than the shipper for any demurrage, detention, or other similar per container charges, including determining whether such parties should be billed at all. Not later than 90 days after the date of enactment of this Act, the Commission shall initiate a rulemaking proceeding to incorporate subsections

(d)through

(f)of 41104 of title 46, United States Code, which shall include the following: The obligation to adopt reasonable rules and practices related to or connected with the furnishing and allocation of adequate and suitable equipment, vessel space accommodations, containers, and other instrumentalities necessary for the receiving, loading, carriage, unloading and delivery of cargo. The duty to perform the contract of carriage with reasonable dispatch. The requirement to carry United States export cargo if such cargo can be loaded safely and timely, as determined by the Commandant of the Coast Guard, and carried on a vessel scheduled for such cargo’s immediate destination. The requirement of ocean common carriers to establish contingency service plans to address and mitigate service disruptions and inefficiencies during periods of port congestion and other market disruptions.

Connections1 off-index

1 reference not yet in our index

85 FR 29638

Citation graph

cites case law

Sec. 180009

Detention and demurrage

Fed. Reg.85 FR 29638

Cites 1Cited by 0 across 0 sources