WSC Seeks Correction of Contradiction in FMC Detention and Demurrage Final Rule

The World Shipping Council (WSC) today filed a petition for review with the United States Court of Appeals for the District of Columbia Circuit seeking to have the Federal Maritime Commission (FMC) correct an internal contradiction in its new rule on detention and demurrage. 

Statement of WSC President & CEO John Butler regarding this petition for review:

“Congress directed the FMC to further clarify its interpretive rule for billing detention and demurrage, but the final rule contains a significant internal contradiction regarding the billing of motor carriers for detention and demurrage. That inconsistency is already creating substantial confusion and uncertainty for ocean carriers and other industry participants.

The preamble to the rule clearly states that an ocean carrier may invoice a motor carrier with which it holds a contract. The language of the rule itself, however, appears to prohibit such billing. WSC asked the Commission to fix this inconsistency through a technical correction to the final rule, but the FMC has not to date done so. Therefore, WSC is petitioning the D.C. Circuit to correct this inconsistency in order to ensure regulatory clarity for ocean carriers, their customers and business partners.’’