For years, drayage truckers have been caught in the crossfire of demurrage and detention billing, often hit with unfair charges for delays completely outside their control. Those days are over. The Federal Maritime Commission’s (FMC) new rule on Demurrage and Detention Billing Requirements gives you powerful legal tools to fight back.
This guide provides five straightforward strategies to challenge and defeat improper fees.
Strategy 1: The “Not My Contract, Not My Bill” Defense
This is your strongest defense. The new rule makes it clear that invoices can only be sent to the party that actually has a contract with the billing entity (the ocean carrier or marine terminal). In almost all cases, that is the shipper or consignee, not you.
The Rule: According to § 541.4, a demurrage or detention invoice may only be issued to “the person that has contracted with the billing party for the carriage of goods or space.”
Your Action: If you receive an invoice from an ocean carrier you don’t have a direct contract with, your response should be immediate and clear: reject the invoice. You are not the contractually liable party under the law.
Strategy 2: The “Invalid Invoice” Challenge
The FMC has mandated that every invoice must be perfect. If an invoice is missing any one of several key pieces of information, it is considered invalid, and you are not obligated to pay it.
The Rule: § 541.5 states that if an invoice does not include the required information listed in § 541.6, “the billed party is not required to pay the charge.”
Your Action: Treat every invoice like a checklist. Does it have all of the following?
- Bill of Lading number and container number?
- The allowed free time start and end dates?
- The container availability date?
- The specific dates for which the charge is being assessed?
- The correct tariff rule or contract rate?
- Clear contact information for disputing the charge?
- A certification that the billing party’s actions didn’t cause the fee?
If even one item is missing, you can formally dispute the invoice as legally invalid.
Strategy 3: The “Too Late to Bill” Rejection
The rule puts a shot clock on billing. A carrier or terminal cannot wait indefinitely to send you a bill. They have a strict 30-day window.
The Rule: § 541.7 requires a billing party to issue a demurrage or detention invoice “within 30 calendar days from the date on which the charge was last incurred.”
Your Action: When you receive an invoice, immediately look at the dates. If the last day the charge was applied is more than 30 days before the invoice was issued, the bill is untimely and invalid.
Strategy 4: The “Billing Party Interference” Claim
This is a critical new protection. The billing party must now certify on the invoice that its own operational issues did not contribute to the charges. This directly addresses delays caused by terminal congestion, lack of appointments, or unavailable equipment.
The Rule: § 541.6(e)(2) demands each invoice include a “certification that the billing party’s performance did not cause or contribute to the underlying charge.”
Your Action: Document everything. If you cannot get an appointment, the terminal is congested, or there are no chassis available, you have proof that the billing party’s performance contributed to the delay. You can then dispute the charge by pointing out the inaccuracy of their legally required certification.
Strategy 5: Use the Formal Dispute Process
The rule establishes a mandatory and clear process for resolving disputes. You have a right to a timely response.
The Rule: Billed parties must be given “at least 30 calendar days from the invoice issuance date” to request a fee mitigation, refund, or waiver, according to § 541.8. The billing party must then attempt to resolve the matter within 30 days of receiving that request.
Your Action: Do not ignore an incorrect bill. Use the contact information provided on the invoice, as required by § 541.6(d), to formally submit your dispute in writing. Make sure to cite which of the strategies above apply. This action starts a 30-day clock for the billing party to resolve the issue, giving you a clear and enforceable timeline.
Conclusion
By understanding and using these five strategies, you can effectively defend your business from improper demurrage and detention charges. The power has shifted. Know the rules, document your operations, and don’t pay for delays you didn’t cause.