Shippers have welcomed the US Federal Maritime Commission’s final rule on detention and demurrage billing practices, says an article published on loadstar website.
Summary
- Shippers, including the Agriculture Transportation Coalition (AgTrans), have welcomed the US Federal Maritime Commission’s (FMC) final rule on detention and demurrage billing practices as a significant step towards reforming what they view as “abusive” industry practices.
- AgTrans emphasizes the ongoing work needed by shippers, carriers, and others in the supply chain to address remaining challenges despite welcoming the final rule.
- The final rule is scheduled to become effective on May 28th, establishing a concrete timeline for the implementation of regulatory changes.
- Concerns raised during the proposal stage were addressed by the commission, demonstrating a responsive regulatory process according to AgTrans.
Shippers Applaud Commission’s Action
Shippers have expressed their satisfaction with the US Federal Maritime Commission’s (FMC) final rule on detention and demurrage billing practices. The Agriculture Transportation Coalition (AgTrans) hailed this as a significant step towards reforming what it deemed “abusive” practices within the industry.
Acknowledgment Of Remaining Work
While welcoming the final rule, AgTrans emphasized that there is still work to be done by shippers, carriers, and others in the supply chain to address ongoing challenges.
Effective Date
The final rule is set to take effect on May 28th, marking a concrete implementation timeline for the regulatory changes.
Resolution Of Proposed Rule Issues
AgTrans noted that concerns raised during the proposal stage had been appropriately addressed by the commission, signaling a responsive regulatory process.
Importance Of Collaboration
The coalition stressed the importance of collaboration between carriers and organizations representing shippers to address issues proactively. They highlighted instances where carriers, upon being informed of billing realities, expressed willingness to address concerns.
Specific Billing Information Requirement
AgTrans welcomed the requirement for detention and demurrage (D&D) invoices to provide detailed information on the basis of charges. They emphasized that this transparency would enable parties to assess the justifiability of charges.
30-Day Invoicing Requirement Enhancement
The coalition regarded the implementation of a 30-day invoicing requirement as a significant improvement in the final rule.
Third-Party Invoicing Handling
The final rule clarified that shippers or consignees have the option to engage third parties for processing, reviewing, and paying D&D invoices, providing flexibility in invoice management.
Appreciation And Collaboration
AgTrans expressed gratitude towards the FMC, bipartisan politicians, and even some carriers for their engagement in the reform process. They highlighted constructive dialogues between carrier executives and AgTrans members in identifying and resolving areas of friction.
Continued Engagement
The coalition expressed eagerness to continue productive engagement with carriers and other stakeholders to address ongoing issues and foster positive outcomes in the industry.
Overall, the final rule represents a significant milestone in addressing concerns related to detention and demurrage billing practices, with a focus on transparency, accountability, and collaboration within the maritime supply chain.
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Source: load star
